Case Study: How Dell Converts Social Media Analytics Benefits into Strategic Business Advantages

Transcript of a BriefingsDirect podcast on how social media creates a gold mine of information for businesses of all sizes and how proper analytics and responses build a competitive advantage.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

Dana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and you’re listening to BriefingsDirect. Today, we present a sponsored podcast discussion on the expanding role and heightening importance of social media data as an essential ingredient for companies to gain strategic business advantage.

Gardner

We’ll examine specifically how Dell has recognized the value of social media for more than improved interactions and brand awareness. Dell has successfully learned from social media how to meaningfully increase business sales and revenue.

According to Dell, the data, digital relationships, and resulting analysis inherent in social media and social networks interactions provide a lasting resource for businesses and their customers. And this resource has a growing and lasting impact on many aspects of business -- from research, to product management, to CRM, to helpdesk, and, yes, to sales.

To learn more about how Dell has been making the most of social media for the long haul, please join me now in welcoming Shree Dandekar, Senior Director of Business Intelligence and Analytics at Dell Software. Welcome, Shree.

Shree Dandekar: Good Morning, Dana, thanks for having me on.

Gardner: We’re glad you’re here. Businesses seem to recognize that social media and social-media marketing are important, but they haven’t very easily connected the dots in how to use social media for actual business results. What do you think has been holding them back from not yet realizing the payoffs?

Dandekar: There is an interesting dynamic happening between enterprises and some of the small businesses. But before I go there, let’s talk about the landscape in terms of the adoption of social media by businesses overall.

Dandekar

It’s not that businesses don’t realize the value of social media. In fact, many businesses are looking at simple, social media listening and monitoring tools to start their journey into social media.

The challenge is that when you make these investments into any kind of a listening or monitoring capability, people tend to stop there. It takes them a while to start collecting all the data on LinkedIn, Facebook, or Twitter. It takes some time for them to make some meaningful sense out of that. That’s where the dynamic comes in when you talk to an enterprise business. They’ve really moved on.

So, there are several stages within a social media journey, the very first one being listening and monitoring, where you start capturing and aggregating data.

From there, you start doing some kind of sentiment analysis. You go into some kind of a social-media engagement, which leads to customer care. Then, you go into questions like social return on investment (ROI) and then, try to bring in business data and mash up that together. This is what’s known as Social CRM.

So, if you say that these are the six stages of social-media maturity model or a social-media lifecycle, some of the enterprise businesses have really matured in the first three or four phases, where they have taken social media all the way to customer care. Where they are struggling now is in implementing technologies where you can derive an actual ROI or business value from this data.

Listening and monitoring

Whereas, if you look at some of the small businesses or even mid-sized companies, they have just started getting into listening and monitoring, and the reason is that there are not many tools out there that appeal to them.

I won’t name any specifically, but you know all the big players in the social media listening space. They tend to be expensive and require a lot of reconfiguration and hands-on training. The adoption of social media in the small-sized business or even mid-sized businesses has been slow because these guys don't want to invest in these types of tools.

By the way, here is another big differentiator. If you look at enterprises, they don't shy away from investing in multiple tools, and Dell is a great example. We have a Radian6 deployment, social-media engagement tools, and our own analytic tools that we build on top of that. We tried each and every tool that's out there because we truly believe that we have to gain meaningful insights from social media, and we won't shy away from experimenting with different tools.

Mid-sized companies don't have the budget or resources to try out different tools. They want a single platform that can do multiple things for them – essentially a self-service-enabled social-media intelligence platform.

If I start with listening, I just want to understand who is talking about me, who my influences are, who are my detractors, what are my competitors talking about, and whether or not I can do a quick sentiment analysis. That's where I want to start.

Gardner:  I was very impressed to learn that Dell has been doing social media since 2006, so going quite a ways back. How important is this to Dell as a company and how important do you think other companies should view this? Is this sort of a one-trick pony, or is there a lasting and expanding value to doing social media interactions analysis?

Dell was built on the value of going direct to consumers and the blog had to communicate and live by those same values.

Dandekar: In addition to leadership from the top, it took a perfect storm to propel us fully into social. In July 2006 when pictures and a report surfaced online out of Osaka, Japan of a Dell laptop spontaneously combusting due to a battery defect (which happened to impact not just Dell, but nearly every laptop manufacturer), it was a viral event of the sort you don’t want. But we posted a blog titled “Flaming Notebook” and included a link to a photo showing our product in flames – which caused some to raise an eyebrow.

I will pause there for a second. How many of you would do that if something similar happened to your business? But Michael Dell made it crystal clear: Dell was built on the value of going direct to consumers and the blog had to communicate and live by those same values.

This is 2006, when the internet and the true value of blogging and everything was just becoming more relevant. That was a turning point in the way we did customer care and the way we engaged with our customers. We realized that people are not only going to call an 800 support number, but are going to be much more vocal about it through sources like social media blogging on Twitter and Facebook.

That's how our journey in social media began and it’s been a multi-year, multi-investment journey. We started looking at simple listening and monitoring. We built a Social Media Command Center. And even before that, we built communities for both our employees and our customers to start interacting with Dell.

Idea Storm

One of the most popular communities that we built was called Idea Storm. This was a community in which we invited our customers to come in and share ideas product improvements they want. This community was formed around 2007. To date, there have been close to 550 different ideas that we got from this community that have been implemented in Dell products.

Similarly, we launched Employee Storm, which was for all the employees at Dell, and the idea was similar. If there are some things in terms of processes or products that can be changed, that was a community for people to come in and share those ideas.

Beyond that, as I said, we built a Social Media Command Center back in 2010. And we also stood up the Social Media and Communities University program. We started training our internal users, our employees, to take on social media.

Dell firmly believes that you need to train employees to make them advocates for your brand instead of shying away and saying, “You know what, I'm scared, because I don't know what this guy is going to be saying about me in the social media sphere.”

Instead, we’re trying to educate them on what is the right channel and how to engage with customers. That's something that Dell has developed over the last six years.

Social media has become a core part of our DNA, and it fits well because of the fact that our DNA has always been built on directly interacting with our customers.

Gardner: Well, that's very interesting. You’ve taken a one-way interaction, made it two-way, and then expanded well beyond that. How far and wide do the benefits of social media go? Are you applying this to help desk, research, new products, service and support, or all the above? Is there any part of Dell that doesn't take advantage from social media?

Dandekar: No, social media has become a core part of our DNA, and it fits well because of the fact that our DNA has always been built on directly interacting with our customers. If a customer is going to use social media as one of their primary communication channels, we really need to embrace that channel and make sure we can communicate and talk to our customers that way.

Gardner: I also was impressed to learn that you are directly making sales through Twitter to the tune of millions of dollars. How does that work? How do other companies learn from your example of not only having many business benefits that are so called soft benefits, but also direct sales? How do you make direct sales through Twitter?

Dandekar: We've invested a lot in this space. We have a big channel through Salesforce.com where we interact with all the leads that come in through Salesforce.

Taking that relationship to the next level, is there a way I can smartly link the Salesforce leads or opportunities to someone's social profile? Is there a way I can make those connections, and how smartly can I develop some sales analytics around that? That way, I can target the right people for the right opportunities.

Creating linkage

That's one step that Dell has taken compared to some of our industry competitors, to be very proactive in making that linkage. It’s not easy. It requires some investment on your part to take that next step. That's also very close to the sixth stage that I talked about, which is social CRM.

You’ve done a good job at making sure you’re taking all the social media data, massaging it, and deriving insight just from that. Now, how can you bring in business data, mash it up with social data, and then create even powerful insights where you can track leads properly or generate opportunities through Twitter, Facebook or any other social media sources?

Gardner: Shree, it seems to me that what you’re doing is not only providing value to Dell, but there is a value to the buyer as well. I think that as a personal consumer and a business consumer I’d like for the people that I am working with in the supply chain or in a procurement activity to know enough about me that they can tailor the services, gain insight into what my needs are, and therefore better serve me. Is there an added-value to the consumer in doing all this well, too?

Dandekar: Absolutely. The power of social media is real-time. Every time you get a product from Dell and tweet about it or say you like it on Facebook, there is a way that I can, in real-time, get back to that customer and say I heard you and thanks for giving us positive or a negative feedback on this. For me to take that and quickly change a product decision or change a process within Dell is the key.

The power of social media is real-time.

There are several examples. One example that comes to mind is the XPS 13 platform that we launched. The project was called “Project Sputnik.” This was an open-source notebook that we deployed on one of our consumer platforms XPS 13.

We heard a lot of developers saying they like Dell, but really wanted a cool, sexy notebook PC with all the right developer tools deployed on that platform. So, we started this project where we identified all the tools that would resonate with developers, packaged them together, and deployed it on the XPS 13 platform.

From the day when we announced the platform launch, we were tracking the social media channels to see if there was any excitement around this product.

The day we launched the product, within the first three or four hours, we started receiving negative feedback about the product. We were shocked and we didn’t know what was going on.

But then, through the analytics that we have developed on top of our social media infrastructure, we were able to pinpoint that one of the product managers had mistakenly priced the notebook higher than that of a Windows notebook. The price should not have been higher than that of a Windows notebook, and that’s why a lot of developers were angry. They thought that we were trying to price it higher than traditional notebooks.

We were able to pinpoint what the issue was and within 24 hours, we were able to go back to our product and branding managers and talk to them about the pricing issue. They changed the pricing on dell.com and we were able to post a blog on Engadget.

Brand metrics

Then, in real time, we were able to monitor the brand metrics around the product. After that, we saw an immediate uptick in product sentiment. So, the ability to monitor product launches in real time and fix issues in real time, related with product launches, is pretty powerful.

One traditional way you would have done that is something called Net Promoter Score (NPS). We use NPS a lot within Dell. The issue with it is that it is survey-based. You have to send out the survey. You collect all the data. You mine through it and then you generate a score.

That entire process takes 90 to 120 days and, by the time you get it, you might have missed out on a lot of sales. If there was a simple tweak, like pricing, that I could have done overnight, I would have missed out on it by two months.

That’s just an example, where if I had waited for NPS to tell me that pricing was wrong, I would have never reacted in real-time and I would have lost my reputation on that particular product.

Gardner: It’s pretty important nowadays to have that short latency between reacting to a market and satisfying a market. We don’t have the luxury of going a year or two. That’s super important these days.

The ability to monitor product launches in real time and fix issues in real time, related with product launches, is pretty powerful.

Shree, as you mentioned, Dell has doing this now for quite a few years. What are they getting for their effort? How extensive is your listening and analysis from social media?

Dandekar:  Just to cite some quick stats, Dell has more than 21 million social connections through fans on Facebook, followers on Twitter, Dell community members, and more across the social web.

We talked about customer care and the engagement centers, and I talked about those six stages of the social media journey. Based on the Social Media Command Center that we have deployed within Dell, we also have a social outreach services team that responds to an average of 3,500 posts a week in 14 languages and we have an over 97 percent resolution rate.

We talked about Idea Storm and I had talked about the number of ideas that have been generated out of that. Again, that’s close to 550 plus ideas to date.

Then, we talked about the Social Media and Communities University. That’s an education program that we have put in place, and to date, we have close to 17,000 plus team members who have completed the social media training certification through that program.

Social-media education

By the way, that’s the same module that we have started deploying through our social media professional services offering, where we’ve gone in and instituted the Social Media and Communities University program for our customers as well.

We have had a high success rate just finding some of the customers that have benefited through our social media professional services team and also deploying Social Media Command Center.

Red Cross is a great example where we have gone and deployed the Social Media Command Center for them to be much more proactive in responding to people during the times of calamities.

Clemson University is another example, where we've gone and deployed a Social Media Command Center for them that’s used for alternate academic research methods and innovative learning environments.

Gardner: Tell me a little bit about what SNAP is. It seems like we are taking some of this ability to peer into markets and go even deeper than just input and data -- we are really getting into what's motivating people and how that works in a complex ecosystem.

Dandekar: SNAP stands for Social Net Advocacy Pulse. This was a product that we developed in-house. As I said, we have been early users of listening and monitoring platforms and we have deployed Social Media Command Centers within Dell.

It takes a long time to get to that ease of use ability for anybody to go in and look at all these social conversations and quickly pinpoint to an issue.

The challenge, as we kept using some of these tools, was that we realized that the sentiment accuracy was really bad. Most of the times when you take a quote and you run it through one of the sentiment analyzers, it pretty much comes back saying it's neutral, when there’s actually a lot of rich context that’s hidden in the quote that was never even looked at.

The other thing was that we were tracking a lot of metrics around graphs and charts and reports, which was important, but we kind of lost the ability to derive actual meaningful insights from that data. We were just getting bogged down by generating these dashboards for senior execs without making a linkage on why something happened and what were some of the key insights that could have been derived from this particular event.

None of these tools are easy to use. Every time I have to generate a report or do something from one of these listening platforms, it requires some amount of training. There is an expectation that the person who is going to do that has been using this tool for some time. It takes a long time to get to that ease of use ability for anybody to go in and look at all these social conversations and quickly pinpoint an issue.

Those are some of the pain points that we realized. We asked, “Is there a way we can change this so we can start deriving meaningful insights? We don’t have to look at each and every quote and say, it's a neutral sentiment. We can actually start deriving some meaningful contact out of these quotes.”

Here is an example. A customer purchased a drive to upgrade a dead drive from a Dell Mini 9 system, which originally came with an 8 GB PCI solid state drive. He took the 16 GB drive and replaced the 8 GB drive that was dead. The BIOS on the system instantly recognized it and booted it just fine. That’s the quote that we got from one of the customer’s feedback.

Distinct clauses

If I had run that quote through one of the regular sentiment analyzing solutions, it would have pretty much said it's neutral, because there was really nothing much that it could get from that it. But if you stop for a second and read through that quote, you realize that, there are a couple of important distinct clauses that can be separated out.

One thing is that he’s talking about a hard drive in the first line. Then, he’s talking about the Dell Mini 9 platform, and then he’s talking about a good experience he had with swapping the hard drive and that the BIOS was able to quickly recognize the drive. That’s a positive sentiment.

Instead of looking at the entire statement and assigning a neutral rating to it, if I can chop it down into meaningful clauses, then I can go back to customer care or my product manager and say, “Out of this, I was able to assign an intensity to the sentiment analysis score.” That makes it even more meaningful to understand what the quote was.

It's not going to be just a neutral or it's not going to be a positive or negative every time you run it through a sentiment analysis engine. That’s just one flavor.

You asked about sentiment gravity. That’s just one step in the right direction, where you take sentiment and assign a degree to it. Is it -2, -5, +5, or +10? The ability to add that extra color is something that we wanted to do on top of our sentiment analysis.

I can really mine that data to understand how I can take that and derive meaningful insights out of that.

Beyond that, what if I could add where the conversation took place. Did it take place on Wall Street Journal or Forbes, versus someone’s personal blog, and then assign it an intensity based on where the conversation happened?

The fourth area that we wanted to add to that was author credibility. Who talked about it? Was it a person who is a named reputed person in that area, or was it an angry off customer who just had a bad experience. Based on that, I can rate and rank it based on author credibility.

The fifth one we added was relevance. When did this event actually happen? If this event happened a year or two back, or even six months back, and someone just wants to cite it as an example, then, I really don’t want to give it that high rating. I might change the sentiment to reflect that it's not that relevant based on today’s conversations.

If I take some of these attributes, sentiment, degree of sentiment, where the conversation happened, who talked about it and when and why did that conversation happen and then convert that into a sentiment score, that’s now a very powerful mechanism for me to calculate sentiment on all these conversations that are happening.

That gives me meaningful insights in terms of context. I can really mine that data to understand how I can take that and derive meaningful insights out of that. That’s what SNAP does, not just score a particular quote by pure sentiment, but add these other flavors on top of that to make it much more meaningful.

Make it usable

Gardner: So the information is out there, people are telling you what they want, they’re interacting in such a way that you can gain very valuable insights, if you take the proper steps to get that information and make it usable in your own organization.

Dandekar: That’s right.

Gardner: I’m going to put you on this spot here, Shree, because you mentioned earlier that small to medium-sized businesses are looking for a one-stop shop to do this.

You’ve already demonstrated what Dell is doing internally. Have you considered productizing this and perhaps creating a service for the smaller companies that want to do this sort of social analysis and help them along the way?

We also want to make sure we’re bringing tools to market to service those mid-market companies as well.

Dandekar: We’re still working through those details and figuring out as we always do the best ways to bring solutions to market, but for us, mid-market is our forte. That’s an area where Dell has really excelled. For us to be in the forefront of enterprise social media is great, but we also want to make sure we’re bringing tools to market to service those mid-market companies as well.

By the way, we have stood up several solutions for our customers. One of them is the Social Media Command Center. We’ve also stood up social media professional services and we offer consulting services even to small- and mid-sized companies on how to mature in a social media maturity cycle. We are also looking at bringing SNAP to market. But if you’re talking about specific software solutions, that’s an area that we’re certainly looking into, and I would just say, “Stay tuned.”

Gardner: We’ll certainly look for more information along those lines. It's something that makes a lot of sense to me. Looking to the future, how will social become even more impactful?

People are increasing the types of activities they do on their mobile devices and that includes work and home or personal use and a combination of them, simultaneous perhaps. They look to more cloud models for how they access services, even hybrid clouds. It’s stretching across your company’s on-premises activities and more public cloud or managed service provider hosted services.

We expect more machine-to-machine data and activities to become relevant. Social becomes really more of a fire hose of data from devices, location, cloud, and an ever-broadening variety of devices. Maybe the word social is outdated. Maybe we’re just talking about data in general?

How do you see the future shaping up, and how do we consider managing the scale of what we should expect as this fire hose grows in size and in importance?

Embarking on the journey

Dandekar: This is a great question and I like the way you went on to say that we shouldn’t worry about the word social. We should worry about the plethora of sources that are generating data. It can be Facebook, LinkedIn, or a machine sensor, and this fits into the bigger picture of what's going to be your business analytics strategy going forward.

Since we’re talking about this in the context of social, a lot of companies that we talk to -- it can be an enterprise-size company or a mid-market-size company -- most of the time, what we end up seeing is that people want to do social media analytics or they want to invest in the social media space. Some of their competitors are doing that, and they really don’t know what to expect when they embark on this journey.

A lot of companies have already gone through that transformation, but many companies are still stuck in asking, “Why do I need to adopt social media data as part of my enterprise data management architecture?”

Once you cross that chasm, that’s where you actually start getting into some meaningful data analytics. It's going to take a couple of years for most of the businesses to realize that and start making their investments in the right direction.

It's going to take a couple of years for most of the businesses to realize that and start making their investments in the right direction.

But coming back to your question on what's the bigger picture, I think it’s business analytics. The moment you bring in social media data, device data, the logs, sources like Salesforce, NetSuite -- all this data together now presents the unified picture using all the datasets that were out there.

And these datasets can also be datasets like something from Dun and Bradstreet, which has a bunch of data on leads or sales, mixing that data with something like Salesforce data and then bringing in social media data. If I can take those three datasets and convert that into a powerful sales analytics dashboard, I think that’s the nirvana of business analytics. We’re not there yet, but I do feel a lot of industry momentum going in that direction.

Gardner: I agree that that’s the end game and we’re only a few innings in, but it's very impressive and an exciting time to be looking out to that.

I'm afraid we’ll have to leave it there. You've been listening to a sponsored BriefingsDirect Podcast discussion on how social media data has emerged as an essential ingredient and how companies gain strategic business advantage.

And we've seen how Dell has been making the most of social media for the long haul by positively impacting many aspects of it's business. We've also heard that getting a handle on managing the flow of social media puts organizations -- whether they are small, medium or large enterprises -- in a position to better manage all kinds of data as that data becomes available.

So a big thank you to our guest, Shree Dandekar, Senior Director of Business Intelligence and Analytics at Dell Software.

Dandekar: Thanks, Dana.

Gardner: And of course a big thank you, too, to our audience for joining this insightful discussion. This is Dana Gardner, Principal Analyst at Interarbor Solutions. Thanks again, for listening and don’t forget to come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

Transcript of a BriefingsDirect podcast on how social media creates a gold mine of information for businesses of all sizes and how proper analytics and responses build a competitive advantage. Copyright Interarbor Solutions, LLC, 2005-2014. All rights reserved.

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Enterprise Mobile and Client Management Demands a Rethinking of Work, Play and Productivity, Says Dell Executive

Transcript of a Briefings Direct podcast on the new landscape sculpted by the increasing use of mobile and BYOD, and how Dell is helping companies navigate that terrain.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

Dana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and you’re listening to BriefingsDirect.

Gardner

Today, we present a sponsored podcast discussion on how the recent and rapid evolution of mobile and client management requirements have caused considerable complexity and confusion.

We’ll examine how incomplete solutions and a lack of a clear pan-client strategy have hampered the move to broader mobile support at enterprises and mid-market companies alike. This state of muddled direction has put IT in a bind, while frustrating users who are eager to gain greater productivity and flexibility in their work habits, and device choice.

To share his insights on how to better prepare for a mobile-enablement future that quickly complements other IT imperatives such as cloud, big data, and even more efficient data centers, we’re pleased to welcome our special guest, Tom Kendra, Vice President and General Manager, Systems Management at Dell Software. [Disclosure: Dell is a sponsor of BriefingsDirect podcasts.]

Welcome, Tom. How are you?

Tom Kendra: Hey, Dana. I am doing very well, and with that intro, it sounds like you’ve pretty much got the answers, my friend.

Gardner: Well, we have the questions, Tom. The answers are what people are looking for.

Kendra: I think that you’ve laid it out quite well in your opening comments. There is an enormous amount of conversation in this area and it’s moving very, very rapidly. Similar to many of your listeners, I imagine, the number of invitations we get to attend conferences on mobility or bring your own device (BYOD) is off the charts.

Every day my inbox is filled with new invites. So there’s a lot of conversation around it. Part of that, Dana, is around the fact that this is an evolving space. There are a lot of moving parts, and hopefully, in the next few minutes, we’ll be able to dive into some of those.

Gardner: I suppose, Tom, looking at this from a historical perspective, people have been dealing with a fast-moving client environment for decades. Things have changed rapidly with the client. We went through the Web transition and client-server. We’ve seen all kinds of different ways of getting apps to devices. It’s always been a fast-moving target.

I wonder, from your perspective, what’s different about the mobile and BYOD challenges today?

Speed and agility

Kendra: Our industry is characterized by speed and agility. Right now, the big drivers causing the acceleration can be put into three categories: the amount and type of data that’s available, all the different ways and devices for accessing this data, as well as the evolving preferences and policies for dictating who, what, and how data is shared.

Kendra

For example, training videos, charts and graphs versus just text, and the ability to combine these assets and deliver them in a way that allows a front-line salesperson, a service desk staffer or anyone else in the corporate ecosystem to satisfy customer requests much more efficiently and rapidly.

The second area is the number of devices we need to support. You touched on this earlier. In yesterday’s world -- and yesterday was a very short time ago -- mobility was all around the PC. Then, it was around a corporate-issued device, most likely a business phone. Now, all of a sudden, there are many, many, many more devices that corporations are issuing as well as devices people are bringing into their work environment at a rapid pace.

We’ve moved from laptops to smartphones that were corporate-issued to tablets. Soon, we’ll get more and more wearables in the environment and machine-to-machine communications will become more prevalent. All of these essentially create unprecedented opportunities, yet also complicate the problem.

The third area that’s driving change at a much higher velocity is the ever-evolving attitude about work and work-life balance. And, along with that ... privacy. Employees want to use what they’re comfortable using at work and they want to make sure their information and privacy rights are understood and protected. These three items are really driving the acceleration.

Employees want to use what they’re comfortable using at work and they want to make sure their information and privacy rights are understood and protected.

Gardner: And the response to this complexity so far, Tom, has been some suite, some mobile device management (MDM) approaches, trying to have multiple paths to these devices and supporting multiple types of infrastructure behind that. Why have these not yet reached a point where enterprises are comfortable? Why have we not yet solved the problem of how to do this well?

Kendra: When you think about all the different requirements, you realize there are many ways to achieve the objectives. You might postulate that, in certain industries, there are regulatory requirements that somewhat dictate a solution. So a lot of organizations in those industries move down one path. In industries where you don’t have quite the same regulatory environment, you might have more flexibility to choose yet another path.

The range of available options is wide, and many organizations have experimented with numerous approaches. Now, we’ve gotten to the point where we have the unique opportunity -- today and over the next couple of years -- to think about how we consolidate these approaches into a more integrated, holistic mobility solution that elevates data security and mobile workforce productivity.

None of them are inherently good or bad. They all serve a purpose. We have to ask, “How do I preserve the uniqueness of what those different approaches offer, while bringing together the similarities?”

More efficient

How can you take advantage of similarities, such as the definition of roles or which roles within the organization have access to what types of data? The commonalities may be contextual in the sense that I’m going to provide this kind of data access if you are in these kinds of locations on these kinds of devices. Those things we could probably pull together and manage in a more efficient way.

But we still want to give companies the flexibility to determine what it means to support different form factors, which means you need to understand the characteristics of a wearable device versus a smartphone or an iPad.

I also need to understand the different use cases that are most prevalent in my organization. If I’m a factory worker, for example, it may be better to have a wearable in the future, rather than a tablet. In the medical field, however, tablets are probably preferred over wearables because of the need to enter, modify and view electronic medical records. So there are different tradeoffs, and we want to be able to support all of them.

Gardner: Looking again at the historical perspective, in the past when IT was faced with a complexity --  too many moving parts, too many variables -- they could walk in and say, “Here’s the solution. This is the box we’ve put around it. You have to use it this way. That may cause you some frustration, but it will solve the bigger problem.” And they could get away with that.

Today, that’s really no longer the case. There’s shadow IT. There’s consumerization of IT. There are people using cloud services on their own volition without even going through any of the lines of business. It's right down to the individual user. How does IT now find a way to get some control, get the needed enterprise requirements met, but recognize that their ability to dictate terms is less than it used to be?

Line-of-business owners are coming forward to request that different employees or organizational groups have access to information from a multitude of devices.

Kendra: You’re bringing up a very big issue. Companies today are getting a lot of pressure from individuals bringing in their own technology. One of the case studies you and I have been following for many months is Green Clinic Health System, a physician-owned community healthcare organization in Louisiana. As you know, Jason Thomas, the CIO and IT Director, has been very open about discussing their progress -- and the many challenges -- encountered on their BYOD journey. 

As part of Green Clinic’s goal to ensure excellent patient care, the 50 physicians started bringing in different technologies, including tablets and smartphones, and then asked IT to support them. This is a great example of what happens when major organizational stakeholders -- Green Clinic’s physicians, in this case -- make technology selections to deliver better service. With Green Clinic, this meant giving doctors and clinicians anytime, anywhere access to highly sensitive patient information on any Internet-connected device without compromising security or HIPAA compliance requirements. 

In other kinds of businesses, similar selection processes are underway as line-of-business owners are coming forward to request that different employees or organizational groups have access to information from a multitude of devices. Now, IT has to figure out how to put the security in place to make sure corporate information is protected while still providing the flexibility for users to do their jobs using preferred devices.

Shadow IT often emerges in scenarios where IT puts too many restrictions on device choice, which leads line-of-business owners and their constituents to seek workarounds. As we all know, this can open the door to all sorts of security risks. When we think about the Green Clinic example, you can see that Jason Thomas strives to be as flexible as possible in supporting preferred devices while taking all the necessary precautions to protect patient privacy and HIPAA regulations.

Similar shift

Gardner: When we think about how IT needs to approach this differently -- perhaps embracing and extending what's going on, while also being mindful of those important compliance risk and governance issues -- we’re seeing a similar shift from the IT vendors.

I think there’s such a large opportunity in the market for mobile, for the modern data center, for the management of the data and the apps out to these devices, that we are seeing vendor models shifting, and we’re seeing acquisitions happening.

What's different this time from the vendor perspective? When you’re trying to bring out a solution, like with IT operators, you don’t have the same ability to just plop down a product and say, “Here’s what you do. Here’s how you buy it.” Is this is something that’s closer to an ecosystem or solution type of approach?

Kendra: An excellent point again. The types of solutions Dell is bringing to the market embrace what’s needed today while being flexible enough to accommodate future applications and evolving data access needs.

The goal is to leverage customers’ existing investments in their current infrastructures and find ways to build and expand on those with foundational elements that can scale easily as needs dictate. You can imagine a scenario in which an IT shop is not going to have the resources, especially in the mid-market, to embrace multiple ways of managing, securing, granting access, or all of these things.

The industry has to move from a position of providing a series of point solutions to guiding and leading with a strategy for pulling all these things together.

The industry has to move from a position of providing a series of point-solutions to guiding and leading with a strategy for pulling all these things together. Again, it comes down to giving companies a plan for the future that keeps pace with their emerging requirements, accommodates existing skill sets and grows with them as mobility becomes more ingrained in their ways of doing business. That’s the game -- and that’s the hard part.

We were at MobileCON two months ago in San Jose and we spoke about how companies need to think through this as they move forward. There are a couple of important points we think need to be taken into consideration. First of all, it is not just a line-of-business, IT, legal, security, or HR discussion. It's getting all those teams together to think about their current and future requirements. These conversations are critical and they need to happen in context with what’s happening across the business while taking into account the intersections and correlations with the various stakeholders.

Line of business has to step forward and say, “This is what I think allows me to drive customer value. This is what I think I need to do.” HR needs to think about it and have a say in giving employees what they need to achieve ideal work-life balance while ensuring that policies address the impact on current and future employees, contractors and consultants.

And IT needs to say, “Here is how I have to leverage the investments we’re making.” That conversation has to happen, and it happens in some organizations at a much more rapid rate than others.

Long-term affair

Gardner: That’s why I think this is easily going to be a three- to five-year affair. Perhaps it will be longer, because we’re not just talking about plopping in a mobile device management capability. We’re really talking about rethinking processes, business models, productivity, and how you acquire working skills. We’re no longer just doing word processing instead of using typewriters. We’re not just repaving cow paths. We’re charting something quite new.

There is that interrelationship between the technology capabilities and the work. I think that’s something that hasn’t been thought out. Companies were perhaps thinking, “We'll just add mobile devices onto the roster of things that we support.” But that’s probably not enough. How does the vision from that aspect work, when you try to do both a technology shift and a business transformation?

Kendra: You’ve hit again on a really important point. You used the term “plop in a MDM solution.” It's important to understand that the efforts and the initiatives that have taken place have all been really valuable. We’ve learned a lot. The issue is, as you are talking about, how to evolve this strategy and why.

Equally important is having an understanding of the business transformation that takes place when you put all these elements together—it’s much more far-reaching than simply “plopping” in a point solution for a particular aspect.

In yesterday's world, I might have had the right or ability to wipe entire devices. Let’s look at the corporate-issued device scenario. The company owns the device and therefore owns the data that resides or is accessed on that device.  Wiping the device would be entirely within my domain or purview. But in a BYOD environment, I’m not going to be able to wipe a device. So, I have to think about things much differently than I did before.

Users, based on their roles, need to have access to applications and data, and they need to have it served up in a very easy, user-friendly manner.

As companies evolve their own mobility strategies, it’s important to leverage their learnings, while remaining focused on enhancing their users’ experiences and not sacrificing them. That’s why some of the research we’ve done suggests there is a very high reconsideration rate in terms of people and their current mobility solutions.

They’ve tried various approaches and point solutions and some worked out, but others have found these solutions lacking, which has caused gaps in usability, user adoption, and manageability. Our goal is to address and close those gaps.

Gardner: Let's get to what needs to happen. It seems to me that containerization has come to the fore, a way of accessing different types of applications, acquiring those applications perhaps on the fly, rather than rolled out for the entire populace of the workforce over time. Tell us a little bit more about how you see this working better, moving toward a more supported, agile, business-friendly and user-productivity vision or future for mobility.

Kendra: Giving users the ability to acquire applications on the fly is hugely important as users, based on their roles, need to have access to applications and data, and they need to have it served up in a very easy, user-friendly manner.

The crucial considerations here are role-based, potentially even location-based. Do I really want to allow the same kinds of access to information if I’m in a coffee house in China as I do if I am in my own office? Does data need to be resident on the device once I’m offline? Those are the kinds of considerations we need to think about.

Seamless experience

What’s needed to ensure a seamless offline experience is where the issue of containerization arises. There are capabilities that enable users to view and access information in a secure manner when they’re connected to an Internet-enabled device.

But what happens when those same users are offline? Secure container-based workspaces allow me to take documents, data or other corporate information from that online experience and have it accessible whether I’m on a plane, in a tunnel or outside a wi-fi area.

The container provides a protected place to store, view, manage and use that data. If I need to wipe it later on, I can just wipe the information stored in the container, not the entire device, which likely will have personal information and other unrelated data. With the secure digital workspace, it’s easy to restrict how corporate information is used, and policies can be readily established to govern which data can go outside the container or be used by other applications.

The industry is clearing moving in this direction, and it’s critical that we make it across corporate applications.

Heretofore, it's been largely device-centric and management-centric, as opposed to user productivity role-centric.

Gardner: If I hear you correctly, Tom, it sounds as if we’re going to be able to bring down the right container, for the right device, at the right time, for the right process and/or data or application activity. That’s putting more onus on the data center, but that’s probably a good thing. That gives IT the control that they want and need.

It also seems to me that, when you have that flexibility on the device and you can manage sessions and roles and permissions, this can be a cost and productivity benefit to the operators of that data center. They can start to do better data management, dedupe, reduce their storage costs, and do backup and recovery with more of a holistic, agile or strategic approach. They can also meter out the resources they need to support these workloads with much greater efficiency, predict those workloads, and then react to them very swiftly.

We’ve talked so far about all how difficult and tough this is. It sounds like if you crack this nut properly, not only do you get that benefit of the user experience and the mobility factor, but you can also do quite a bit of a good IT blocking and tackling on the backend. Am I reading that correctly or am I overstating that?

Kendra: I think you’re absolutely on the money. Take us as individuals. You may have a corporate-issued laptop. You might have a corporate-issued phone. You also may have an iPad, a Dell tablet, or another type of tablet at home. For me, it’s important to know what Tom Kendra has access to across all of those devices in a very simple manner.

I don’t want to set up a different approach based on each individual device. I want to set up a way of viewing my data, based on my role, permissions and work needs. Heretofore, it's been largely device-centric and management-centric, as opposed to user productivity role-centric.

Holistic manner

The Dell position -- and where we see the industry going -- is consolidating much of the management and security around those devices in a holistic manner, so I can focus on what the individual needs. In doing so, it’s much easier to serve the appropriate data access in a fairly seamless manner. This approach rings true with many of our customers who want to spend more resources on driving their businesses and facilitating increased user productivity and fewer resources on managing a myriad of multiple systems.

Gardner: By bringing the point of management -- the point of power, the point of control and enablement -- back into the data center, you’re also able to link up to your legacy assets much more easily than if you had to somehow retrofit those legacy assets out to a specific device platform or a device's format.

Kendra: You’re hitting on the importance of flexibility. Earlier, we said the user experience is a major driver along with ensuring flexibility for both the employee and IT. Reducing risk exposure is another crucial driver and by taking a more holistic approach to mobility enablement, we can address policy enforcement based on roles across all those devices. Not only does this lower exposure to risk, it elevates data security since you’re addressing it from the user point of view instead of trying to sync up three or four different devices with multiple user profiles.

Gardner: And if I am thinking at that data center level, it will give me choices on where and how I create that data center, where I locate it, how I produce it, and how I host it. It opens up a lot more opportunity for utilizing public cloud services, or a combination that best suits my needs and that can shift and adapt over time.

Kendra: It really does come down to freedom of choice, doesn’t it? The freedom to use whatever device in whichever data center combination that makes the most sense for the business is really what everyone is striving for. Many of Dell’s customers are moving toward environments where they are taking both on-premise and off-premise compute resources. They think about applications as, “I can serve them up from inside my company or I can serve them up from outside my company.”

We’re a very trusted brand, and companies are interested in what Dell has to say.

The issue comes down to the fact that I want to integrate wherever possible. I want to serve up the data and the applications when needed and how needed, and I want to make sure that I have the appropriate management and security controls over those things.

Gardner: Okay, I think I have the vision much more clearly now. I expect we’re going to be hearing more from Dell Software on ways to execute toward that vision. But before we move on to some examples of how this works in practice, why Dell? What is it about Dell now that you think puts you all in a position to deliver the means to accomplish this vision?

Kendra: Dell has relationships with millions of customers around the world. We’re a very trusted brand, and companies are interested in what Dell has to say. People are interested in where Dell is going. If you think about the PC market, for example, Dell has about an 11.9 percent worldwide market share. There are hundreds and hundreds of millions of PCs used in the world today. I believe there were approximately 82 million PCs sold during the third quarter of 2013.

The point here is that we have a natural entrée into this discussion and the discussion goes like this: Dell has been a trusted supplier of hardware and we’ve played an important role in helping you drive your business, increase productivity and enable your people to do more, which has produced some amazing business results. As you move into thinking about the management of additional capabilities around mobile, Dell has hardware and software that you should consider.

Now, given that we’ve been a trusted supplier for a long time, when getting into the discussion of our world-class technology around hardware, software and services, most people are willing to listen. So we have a natural advantage for getting into the conversation.

World-class technologies

Once we’re in the conversation, we can highlight Dell’s world-class technologies, including end-user computing, servers, storage, networking, security, data protection, software, and services.

As a trusted brand with world-class technologies and proven solutions, Dell is ideally suited to help bring together the devices and underlying security, encryption, and management technologies required to deliver a unified mobile enablement solution. We can pull it all together and deliver it to the mid-market probably better than anyone else.

So the Dell advantages are numerous. In our announcements over the next few months, you’ll see how we’re bringing these capabilities together and making it easier for our customers to acquire and use them at a lower cost and faster time to value.

Gardner: One of the things that I'd like to do, Tom, is not just to tell how things are, but to show. Do we have some examples of organizations -- you already mentioned one with the Green Clinic -- that have bitten the bullet and recognized the strategic approach, the flexibility on the client, leveraging containerization, retaining control and governance, risk, and compliance requirements through IT, but giving those end-users the power they want? What's it like when this actually works?

Kendra: When it actually works, it's a beautiful thing. Let’s start there. We work with customers around the world and, as you can imagine, given people's desire for their own privacy, a lot of them don't want their names used. But we’re working with a major North American bank that has the problems that we have been discussing.

The concept of an integrated suite of policy and management capabilities is going to be extremely important going forward.

They have 20,000-plus corporate-owned smartphones, growing to some 35,000 in the next year. They have more than a thousand iPads in place, growing rapidly. They have a desktop virtualization (VDI) solution, but the VDI solution, as we spoke about earlier, really doesn't support the offline experience that they need.

They are trying to leverage an 850-person IT department that has worldwide responsibilities, all the things that we spoke about earlier. And they use technology from companies that haven’t evolved as quickly as they should have. So they're wondering whether those companies are going to be around in the future.

This is the classic case of, “I have a lot of technology deployed. I need to move to a container solution to support both online and offline experiences, and my IT budget is being squeezed.” So how do you do this? It goes back to the things we talked about.

First, I need to leverage what I have. Second, I need to pick solutions that can support multiple environments rather than a point solution for each environment. Third, I need to think about the future, and in this case, that entails a rapid explosion of mobile devices.

I need to mobilize rapidly without compromising security or the user experience. The concept of an integrated suite of policy and management capabilities is going to be extremely important to my organization going forward.

Mobile wave

This reminds me of some information we reviewed from a Lopez Research report. In their “Mobile Management: A Foundation for the New Mobile Ecosystem,” Maribel Lopez shared that more than half the firms interviewed as part of custom CIO research plan to mobile-enable business apps and processes. The mobile wave is coming and it’s coming fast.

This large financial institution fits that profile. They're moving rapidly. They’re thinking about how to give greater access to applications and data and they need streamlined ways to accomplish that. It’s a typical customer scenario that we are seeing these days.

Gardner: Tom, who gets to do this faster, better, cheaper? Is it the large enterprise that's dragging a long legacy and has a thousand IT people to either help them or hinder them -- or the mid-size organization that can look to a myriad of sourcing options and wants to get out of the data center or facilities business? Is there some sort of a natural advantage, in some way -- a leapfrog type of an effect -- for those mid-market organizations with this?

Kendra: The mid-market has the advantage of not having giant deployments and huge teams, which gives them a certain advantage in being able to move fast and nimbly. On the flip side, the mid-market organization often is resource constrained in terms of budget and skills. Let’s face it, a 10-person IT shop will likely have deep skills in certain areas, but they have to have more generalized experiences.

For them, finding solutions that address multiple problems quickly is an absolute imperative, so they can rollout simple solutions while maximizing economies of scale to the fullest extent. That’s not to say that large enterprises don’t have similar priorities, but they often have complex legacy issues that exacerbate their issues. Dell is equally adept at helping those organizations work through those issues and devise a plan for what to move, when and how without losing sight of longer-term plans and business directions.

You’ll see more from us detailing how those integrated solutions come together to deliver fast time to value.

There are advantages and disadvantages with each. Both need agile solutions and want to leverage their resources to the fullest extent. Both are striving to lower costs and eliminate risks. Both groups are interested in very much the same things but often take different approaches to achieving those goals.

Gardner: It certainly sounds as if Dell is approaching this enterprise mobility manager market with an aggressive perspective, recognizing a big opportunity in the market and an opportunity that they are uniquely positioned to go at. There’s not too much emphasis on the client alone and not just emphasis on the data center. It really needs to be a bridging type of a value-add these days. Can you tease us a little bit about some upcoming news? What should we expect next?

Kendra: The solutions we announced in April essentially laid out our vision of Dell’s evolving mobility strategies. We talked about the need to consolidate mobility management systems and streamline enablement. We focused on the importance of leveraging world-class security, including secure remote access and encryption. And the market has responded well to Dell's point of view.

As we move forward, we have the opportunity to get much more prescriptive in describing our unified approach that consolidates the capabilities organizations need to ensure secure control over their corporate data while still ensuring an excellent user experience.

You’ll see more from us detailing how those integrated solutions come together to deliver fast time to value. You'll also see different delivery vehicles, giving our customers the flexibility to choose from on premise, software-as-a-service (SaaS) based or cloud-based approaches. You'll see additional device support, and you'll see containerization.

Leverage advantages

We plan to leverage our advantages, our best-in-class capabilities around security, encryption, device management; this common functionality approach. We plan to leverage all of that in upcoming announcements.

As we take the analyst community through our end-to-end mobile/BYOD enablement plans, we’ve gotten high marks for our approach and direction. Our discussions involving Dell’s broad OS support, embedded security, unified management and proven customer relationship all have been well received.

Our next step is to make sure that, as we announce and deliver in the coming months, customers absolutely understand what we have and where we're going. We think they're going be very excited about it. We think we're in the sweet spot of the mid-market and the upper mid-market in terms of what solutions they need to ease their mobile enablement objectives.

We also believe we can provide a unique point-of-view and compelling technology roadmaps for those very large customers who may have a longer journey in their deployments or rollout.

We also believe we can provide a unique point-of-view and compelling technology roadmaps for those very large customers who may have a longer journey in their deployments or rollout.

We're very excited about what we're doing. The specifics of what we're doing play out in early December, January, and beyond. You'll see a rolling thunder of announcements from Dell, much like we did in April. We’ll lay out the solutions. We’ll talk about how these products come together and we’ll deliver.

Gardner: Very good. I’m afraid we'll have to leave it there. You have been listening to a sponsored BriefingsDirect podcast discussion on how the recent rapid evolution of mobile and client management requirements and approaches have caused complexity and confusion, but we have now heard Dell's vision for how mobile enablement should be able to quickly complement other IT imperatives and allow for the IT department do what it does best and for end-users to innovate and do what they do best as well.

So a big thank you to our guest, Tom Kendra, Vice President and General Manager, Systems Management at Dell Software. Thanks so much, Tom.

Kendra: Thank you, Dana.

Gardner: And also a big thank you to our audience for joining this insightful discussion. This is Dana Gardner, Principal Analyst at Interarbor Solutions, thanks again for listening, and come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

Transcript of a Briefings Direct podcast on the new landscape sculpted by the increasing use of mobile and BYOD, and how Dell is helping companies navigate that terrain. Copyright Interarbor Solutions, LLC, 2005-2013. All rights reserved.

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BI and Big Data Analytics Force an Overdue Reckoning Between IT and Business Interests

Transcript of a Briefings Direct podcast on how advanced analytics aligns business and IT goals to bring further collaboration on innovation within the enterprise.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

Dana Gardner: Hi, this is Dana Gardner, Principal Analyst at Interarbor Solutions, and you’re listening to BriefingsDirect.

Gardner

Today, we present a sponsored podcast discussion on how big data and business intelligence (BI) trends are hastening a breach between enterprise IT groups and business units. We'll examine how a traditional ebb and flow between IT centralization and decentralization are now swinging in the direction of business groups and even shadow IT. This runs the risk of neglecting essential management security and scalability requirements.

Our discussion now will focus on how big data and analytics should actually force more collaboration and lifecycle-based relationships among and between business and IT groups. For those organizations -- where innovation is being divorced from IT discipline -- we'll explore ways that a comprehensive and virtuous adoption of rigorous and protected data insights can both make the business stronger and make IT more valued.

Here now to share his insights on gaining sustainable, competitive advantage by using enterprise big data strategically, we’re joined by John Whittaker, Senior Director of Marketing for Dell Software's Information Management Solutions Group. Welcome, John. [Disclosure: Dell Software is a sponsor of BriefingsDirect podcasts.]

John Whittaker: Thank you very much, Dana. I’m looking forward to having this conversation and sharing a little bit with your audience about how we at Dell Software look at this particular problem. I’ll offer some suggestions about how we might be able to implement big data and gain lasting sustainable advantage with the solutions that exist today, but doing so in a manner that’s going to deliver long-term success.

Gardner: John, we seem to go back and forth between resources in organizations being tightly controlled and governed by IT, and then resources and control resting largely with the line of business or even, as I mentioned, with a shadow IT group of some sort. So over the past 20 or more years, why has this problem been so difficult to overcome? Why is it persistent? Why do we keep going back and forth?

Whittaker: That’s an interesting question, and I agree. I've been in IT for longer than 20 years and certainly in your study of history you can see that this ebb and flow of centralized management to gain some constraints or some controls in governance and security has been one of the primary motivators of IT. It’s one of the big benefits they provide, but in the backdrop, you have lines of business that want to innovate and want to go in new directions.

Whittaker

Behind all of these things occurring, you have these mega trends that show up, these new technology innovations and these new approaches. There periodically seems to be times when the innovation cycle is really an arc.

We’re entering one of those times right now with big data and the advent of analytics, and it’s driving lines of business to push into these new technologies, and maybe  in ways that IT isn’t ready for just yet.

This, as you mentioned, has been going on for some time. The last iteration where this occurred was back in the ’90s when e-commerce and the Web captured the imagination of business. We saw a lot of similarities to what's occurring today.

Big-data push

It ultimately caused some problems back in the ’90s around e-commerce and leveraging this great new innovation of the Internet, but doing it in a way that was more decentralized. It was a little bit more of the Wild West-based approach and ultimately led to some pretty significant issues that I think we are going to see out of the big data and analytics push that’s occurring right now.

Gardner: I suppose to be fair to each constituency here, it’s the job of IT to be cautious and to try to dot all the i’s and cross the t’s. There were a lot of people in 1996-97 who didn’t necessarily think the Internet was going to be that big of a thing, it seemed to have lots of risk associated with it. So, I suppose due diligence needed to be brought to bear.

On the other hand, if the businesses didn’t recognize that this could be a huge opportunity and we needed to take those risks -- create a website, and enter into a direct dialogue with customers to a new channel -- they would have missed a big opportunity. So these are sort of natural roles, but they can’t be too brittle.

Whittaker: You’re absolutely right. At their core, both groups had, and have, good motivations. IT lives in a world of constraints, of governance, security, and of needing to deliver something that’s going to be stable, that’s going to scale, that’s going to be secure, and that’s not going break governance.

Nobody in either group is trying to harm the business or anything close to it.

Those are laudable goals to have in mind. From the line-of-business perspective, the business wants to innovate and doesn’t want to be outmoded by its competitors. They rightfully see that all these great innovations are coming, and analysts, pundits, and experts are talking about how this is going to make a huge difference for businesses.

So they inevitably want to embrace those, and you have this cognitive dissonance occurring between the IT goals around constraints and the desire to keep things running in a clean and efficient manner. IT is seeing this new technology and saying, “Hold on. We don’t necessarily want to jump into this. This is going to break our model.”

Ultimately, IT gets to a point where maybe they suggest we shouldn’t do it or we should push it off for some time. That’s where the chasm between the two gets started. From the business perspective, the answer “no” is unacceptable, if they feel that’s what they need to do to achieve success in business. They own the profit and loss responsibilities. That’s where these problems come from.

Nobody in either group is trying to harm the business or anything close to it. They just have different motivations and perspectives on how to approach something, and when one gets wildly far apart from the other, that’s where these problems tend to occur. Again, when these big innovation cycles happen, you’re more likely to see a lot of these problems start to occur.

I definitely remember back in 1996-1997. We didn’t call it shadow IT at the time, but you saw IT-like personnel being hired into functional business areas to institute these new technologies, and that ultimately led to a pretty serious hangover at the end of that innovation cycle.

Gardner: What’s the risk of ignoring IT, doing an end-run around them, or downplaying the role? What form does it take?

On their own

Whittaker: Ignoring IT can have some pretty serious problems. It all starts with the fact that, and by and large, businesses can embrace these new technologies without the aid of IT.  Cloud-based implementations have made it possible for lines of business to rapidly deploy some of these new big data technologies, and you have vendors in some cases telling them they don’t need IT’s help. So it’s not all that difficult for lines of business to go out on their own and implement a big data technology.

But they don’t typically have the discipline to apply across-the-board governance capabilities and discipline into their deployment and that leads to potential issues with regulatory requirements. It also leads to security issues, and ultimately can lead to problems where you have seriously bad data management issues.

You have data sunk in silos, and maybe the CEO wants to know how much business we’re doing with x, y, and z. No one can deliver that, because we call x, y, and z, something in one system, a different name in another system, and a different name in the third system. Trying to pull that data together becomes really difficult. When you have lines of business independently operating disparate solutions, those core governance issues tend to break down.

Additionally, although they are great at spotting innovation opportunities, line of business people are not necessarily in the business of building scalable, secure, stable environments. That’s not the core of, say, marketing. They need to understand how the technology can be leveraged, but maintaining and managing it is not core to their charter. It tends to be ignored.

We saw in the early 2000s as the last innovation’s hangover started to occur. We saw people discovering that their systems were not scalable, that they weren’t secure, and that they were unstable because they didn’t have somebody there doing the basic care and feeding that is core to IT. That can lead to some very substantial costs. The cost could be enormous and totally unbound if you start talking about security issues that come from a lack of discipline applied at a governance level.

There are a lot of lessons that can be learned from the concept of working closely together, iterating rapidly, and being open to innovation and the idea that changes occur.

Gardner: John, it strikes me that there are some examples within IT that help understand this potential problem and even grab some remediation, and that’s in software development. We’ve seen the complexity in groups working without a lot of coordination and shared process insights and have run aground.

For many years, we saw a very high failure rate among software development projects, but more recently, we’ve seen improvements -- agile, scrum, opening up the process, small iterative steps that then revert back to an opportunity to take stock and know what everyone is doing, checking in, checking out with centralization -- but without stifling innovation. Is there really a lesson here in what’s happened within software development that could be brought to the whole organization?

Whittaker: Absolutely. In fact, within Dell Software itself we embrace agile and use scrum internally. There are a lot of lessons that can be learned from the concept of working closely together, iterating rapidly, and being open to innovation and the idea that changes occur.

Particularly in these major innovation cycles, it’s important to go with the flow and implement some of these new technologies and new capabilities early, so you can have that brain trust built internally among the broad team. You don’t want IT to hold the reins entirely, and at the same time, you don’t want line of business to do it.

We really need to break that model, that back and forth, centralization-decentralization swing that keeps occurring. We need to get to a point where we really are partnering and have good collaboration, where innovation can be embraced and adopted, and the business can meet its goals. But it has to be done in a way that IT can implement sound governance and implement solutions that can scale, are stable, are reliable, and are going to lead to long-term success.

Back-and-forth

We’ve got to get out of these back-and-forth cycles that occur or we’re going to continue to have these problems. As innovations occur more rapidly, you’re going to have more and more problems like these occurring if you don’t find a way to get IT and line-of-business motivations and interests allied.

Gardner: What’s different this time, John? Are the stakes higher because we’re talking about data analysis? That’s basically intelligence about what’s going on within your markets, your organization, your processes, your supply chain, your ecosystem, all of which could have a huge bearing.

We have the ability now to tackle massive amounts of data very rapidly, but if we don’t bring this together holistically, it seems as if there is a larger risk. I’m thinking about a competitive risk. Others that do this well could enter your market and really disrupt.

Whittaker: You’re absolutely right. There’s great potential benefit that organizations receive or can get out of leveraging big data and analytics, that of being able to determine predictively what is going to occur in their business and what are the most efficient routes to market and what areas of improvements can occur.

The businesses that leverage this are going to outmode, outperform, and ultimately win in the markets currently dominated by organizations who aren’t paying attention and who aren’t implementing solutions today. They’re getting a little bit ahead of this cycle so that they are ready and are able to be successful down the road.

We’re really moving into an era where the context of what’s happening is critically important.

We’re really moving into an era where the context of what’s happening is critically important. A data-driven management model is going to be embraced and it’s ultimately going to lead to more successful organizations. Companies and organizations that embrace this today are going to be the winners tomorrow.

If you’re ignoring this or putting this off, you’re really taking a tremendous risk, because this next iteration of innovation that’s occurring around analytics applies to large data sources. It’s being able to build the correlations and determine that this is a more efficient approach, or conversely, that we have a problem with this outlier that’s going to give us issues down the road.

If you’re not doing that as an organization, you really are running a pretty tremendous risk that somebody else is going to walk in and be able to make smarter decisions, faster.

Gardner: At the same time, your customers are gaining insights into how to procure all the better. And so any rewards that might be out there, if you are in a sales role of any kind, would become much more apparent.

Whittaker: That’s definitely true as well. The construct and the conversation has really shifted. With the advent of social media and the pace at which information is shared and opinions are made, it’s no longer the company that is the primary voice about its products and its capabilities or its positions and point of views.

Customers more empowered

It needs to have those. It needs to get them out. It needs to push them. But in this new world we live in, the customers are so much more empowered than they have ever been before, and it should be a good thing. For companies that are delivering great products and solving real problems for their customers, this should be great news.

If you’re not listening to what your customers are saying in social media and if you’re not paying attention to the ongoing story line and conversation of your firm in the social sphere, you’re really putting yourself at risk. You’re missing out on a tremendous opportunity to engage with your customers in a new, interesting, and very useful way.

That’s a lot of what we built. We have a lot of capabilities here at Dell Software around data management, data integration, and data analysis. On the analysis side, we spend a great deal of time with products like Kitenga and our social networking analytics platforms to do that semantic analysis and look into that form of big data.

But big data is more than just social. It’s also sensor data. The iterative thing is another area where businesses should be innovating and organizations should be pushing to take advantage of it. That’s where line of business should be saying, “We need to get out into this area, or if we don’t, we’re going to be outmoded by our competitors.” And IT should be encouraging it. They should be pushing for more innovation, bringing new ideas, and being a real partner and collaborator at the table within the business and organization. That’s the right way to do this.

IT could use big data analytics to improve its own environment and to answer this crisis of confidence that exists.

Gardner: Otherwise, we run the risk of peeling back an onion only to find other layers unconnected to one another. We don’t get that one view of the customer, that one view of the patient, or that one view of an extended business process. We just create more silos of data. Centralized IT organizations perhaps are better than almost anyone in understanding how to connect those, rather than keep them spinning off on their own.

Whittaker: Absolutely. And IT itself should be applying some of these technologies. In fairness to line of business, there exists a bit of a crisis of confidence in IT, and there’s really no better way to push against that or fight against that then to be able to run analytics on the solutions you’re providing. How well is IT performing? Are you benchmarking against past performance? How do you benchmark against your industry?

That’s another component. Big-data analytics can be utilized by IT not just to deliver capabilities to the organization or push out and help with connecting to the customer. IT could use big data analytics to improve its own environment and to answer this crisis of confidence that exists.

You could turn these tools internally and look at rates of response as compared to your industry, how your network is performing, how your database is performing, or how the code you write is performing. Are your developers efficient in building clean code?

Everybody has been watching the major shift in the healthcare environment in North America. A big component of that probably should have been more benchmark analysis, analytics on code quality, and things of that nature. That’s a great current and topical example of how IT should be utilizing some of these technologies, not just externally, not just bringing it to line of business, but within its own environment, to prove that it’s building systems that are going to be scalable, secure, and stable.

Gardner: What needs to take place in order for this higher level of coordination and collaboration to take place? Are there any key steps that you have in mind for embarking on this?

Four key areas

Whittaker: I think that there are four key areas that need to occur for this collaboration to happen. Number one, senior executives need to be aligned to what the organization is trying to achieve. They need to articulate a common vision that accounts for the shared interest of both IT and line of business and make it clear that they expect collaboration. That should come at the top of the organization.

We need to get out of the smoke-stacked, completely siloed, organizational approaches and get to something that’s far, far more collaborative, and that needs to come from the top. The current approach is not acceptable. These groups need to work together. That’s a key component. If you don’t have buy-in at the top, it makes it really hard for this collaboration to occur.

Number two, IT needs to get its house in order. This means many things, but primarily, it means overcoming the crisis of confidence line of business has in IT by coming to the table with an approach that works for line of business, something that business aligns with such that it feels like it has IT involvement and that they’re buying into the future that the business wants to head towards. IT needs to show that they have a plan that does not compromise the innovations that the business needs.

IT absolutely can no longer just say no. That’s not an acceptable position. Certainly, if you look back, there were IT organizations that were saying, “No, we’re not going to connect to the Internet. It’s not secure. The answer is just going to be no.”

That didn’t work out for them and it’s not going to work out here either. They should be embracing this shift. We shouldn’t perpetuate this cycle by driving more shadow IT and creating ultimately more for IT down the road as inevitable problems start to emerge.

We shouldn’t perpetuate this cycle by driving more shadow IT and creating ultimately more for IT down the road as inevitable problems start to emerge.

Number three, clear the air and put the executive plan in place. Tensions between IT and line of business have gotten to the point where they can’t be ignored any more. Put the stakeholders together in a room, air out the difficulties, and move forward with a clean slate. This is a tremendous opportunity to build a plan that meets both parties’ needs and allows them to start executing on something that’s really going to make a huge impact for the business.

Finally, the fourth point, seek solutions that emphasize collaboration between IT and the business. Many vendors today are encouraging groups to go rogue and operate in silos, and that’s causing a lot of the problem. At Dell, we’re much more about pushing a more collaborative approach. We think IT is terrific, but business has a point. They need innovation and they need IT to step up. And the business needs to embrace IT.

Instead of conflicting with each other and doing your own thing, back up your commitment to collaboration and utilize tools that empower it. That’s where we’re going to win, and that’s how business is going to succeed in the future.

Gardner: Just to be clear John, it sounds as if these aren’t just issues for large enterprises. Mid-size and mid-market organizations, I should think, are in the same issue set or the same ballgame.

Whittaker: You’re absolutely right. If you have an IT department and you have functional business units, you probably have this problem. Certainly, you can benefit from more collaboration, from implementing and instituting an approach to leverage big data and analytics in order to make smarter business decisions is something that everybody is going to need today.

This isn’t something that the G20, the Fortune 500, or Fortune 2000 alone can benefit from. This goes way down in the hierarchy, in the stack, certainly down to the small- and medium-sized business (SMB) level. And maybe even lower. If you’re a data-intensive small business, you probably need to start implementing and taking a look at big data and what analytics based approaches and data-driven decision making opportunities exist within your organization, or you will be outmoded by organizations that do embrace that.

Cloud-based approach

More and more, we’re seeing, particularly in the mid-market, embracing of a cloud-based approach. It's important to point out that that approach is fine and terrific. We love the cloud and we’re big proponents of it, but using a cloud-based solution doesn’t free line of business from the need to collaborate with IT. It will not eliminate this problem.

Yes, you may get a little bit more of stable solution in the cloud, as opposed to managing it yourself, because it's still not core to the functional group. Ultimately, IT is the group that really knows how and where they can apply appropriate constraints, really control those relationships a little better, and ensure that they have solutions in place that allow for you to analyze all the data in the environment.

You need analysis of all the data that exists right now in your cloud implementation, data that exists in all the systems throughout, so you can see all the components and find out where the correlations lie. And if you have siloed data, if you have gone your own way, you’re going to be missing that component.

Gardner: I imagine too that you can’t outsource your alignment of your business strategy with your technology capabilities. In fact, for IT, being able to have more choice with these models for workloads and deployments, frees them up to take more of a role in this alignment.

All businesses want the same thing. They want to find sustainable competitive advantages.

I would think that the role of enterprise architects starts to blend into IT, because they’re no longer looking at the red light-green light issues, keeping the hardware operating. Now, they can really take more of a role and step up to a higher plane on these alignment issues.

Whittaker: Absolutely. We’re seeing terrific IT departments and leadership starting to take a larger role, starting to ultimately become drivers of innovation. That’s really what we want to see. All businesses want the same thing. They want to find sustainable competitive advantages. They want to control spending. They want to reduce risk to the business.

And the most effective and efficient path to achieving all three is getting IT and the business aligned and allowing that collaboration to occur. That’s really at the crux of how businesses are going to gain competitive advantage out of technology in the future.

Gardner: Well, John, I’m afraid we will have to leave it there. We’re about out of time. You’ve been listening to a sponsored BriefingsDirect podcast discussion on how big data and business intelligence trends are hastening a breach or perhaps an alignment between enterprise IT groups and business units. And now is the time to be thinking about which of those directions you will be taking.

You have seen how a more cooperative and innovation fostering relationship, one that can perhaps exploit big data benefits for all is in order and that the stakes are quite high.

And we have learned more about how gaining sustainable competitive advantages using big data strategically among all aspects of enterprises and small businesses should be something made a priority and happen as soon as possible.

Any last words John on recommendations or what you think were some of the more important points that we went over today?

Embrace new technology

Whittaker: Thank you, Dana, this was terrific. And thank you, to the audience, for listening. I would say, again, the big points are, embrace the new technology that’s coming out. The innovation is going to make your business far more successful, and your organization will prosper from these new innovations that will occur.

Number two, do it in a manner that is collaborative between IT and line of business. The CIO, the CMO, the CFO, the CEO, the heads of all of the functional departments, whether you are in sales, marketing, finance, operation, wherever you are, should be aligning with their IT counterparts. It's the combined collaborative approach that’s going to win the day.

And finally, this should really be driven top-down. Senior executives, this is an opportunity to get everybody on the same page to go after and leverage a pretty enormous opportunity before it becomes a huge problem. Let’s get out there right now. We’re still in the early days, but that doesn’t mean there’s not a lot to be gained. And ultimately, in the long-term, we’re going to have more successful organizations able to achieve even greater output through this collaboration and the leveraging of big data analytics.

Gardner: Very good. Thank you to our guest, John Whittaker, Senior Director of Marketing for Dell Software’s Information Management Solutions Group. It was really good talking with you today, John.

Whittaker: Thanks a lot, Dana.

Gardner: And also, a big thank you to our audience for joining this insightful discussion. This is Dana Gardner, Principal Analyst at Interarbor Solutions. Don’t forget to come back next time.

Listen to the podcast. Find it on iTunes. Download the transcript. Sponsor: Dell Software.

Transcript of a Briefings Direct podcast on how advanced analytics aligns business and IT goals to bring further collaboration on innovation within the enterprise. Copyright Interarbor Solutions, LLC, 2005-2013. All rights reserved.

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