Domo Delivers on Managing Business Performance

Over the last four years Domo, a new brand in cloud-based data and analytics software, has worked to enable its customers to understand, collaborate and act on data to achieve business results. Led by its founder and CEO, Josh James, the company has worked to deliver software that provides both a good user experience and business value. Recently, at its 2015 customer conference Domopalooza, the company presented itself and its products to the general public. I had a chance to meet with company executives, employees and customers and view its products at this high-energy event and entertainment that I have not seen in years.

I believe that the key to what Domo has done is its having designed into its offerings how people need to work with data to effectively support decision-making, enable actions and stay informed on the state of the business. Domo takes a different approach than vendors that focus on visual discovery for analysts or try to create the perfect dashboard. Its simpler approach aligns to how people actually work in business. This is a major reason the company received Ventana Research Overall Business Technology Innovation Award for 2015.  VR2015_InnovationAwardWinner

We see five areas where the Domo product stands out from others and has attracted its substantial customer following. Here is a look at each of them.

First, its design reflects an understanding that business people do not have countless hours to navigate through charts looking for information. Instead Domo notifies them of critical changes throughAlerts – a feature that is missing in most other analytics tools that are mostly aimed at analysts. The notifications and alerts can be sent as SMS or email and through the mobile devices that many business people now rely on.

Second is a collaborative feature I really like called DomoBuzz. It provides contextual discussions and enables interactions with others in the same view as the analytics. This is much better than the many minimal approaches to collaboration through email and discussions outside of the context of the actual data. DomoBuzz enables people to have open or closed discussions about what is happening with the data, do root-cause analysis or examine new opportunities. Collaboration within analytics applications has long been a priority for business, but vendors designing products for IT use ignored it. Here again, Domo ensures that this capability works across the Web and mobile devices.

Third, Card Builder enables rapid assembly of information in an easy-to-understand tile that is a visual rectangle used to contain information that is presented and is interactive and collaborative. It automatically interprets data the user selects and suggests the proper visualization and presentation. These “cards” can be assembled into pages and slide shows and can be gone through by gestures on mobile devices. I think these cards could easily be expanded into a summary paragraph that anyone can read to get a high-level view of the business.

Fourth, Domo extends analytics through Tasks, which enables users to create projects, add participants and set checklists that track progress and results. Domo is the only provider I know of that has embedded the ability to assign, track and complete any range of tasks and projects within the analytics environment. And let’s be honest: Analytics generates so many potential actions and tasks that we must create lists of items to follow up on, and these usually are done in email or a document and easily set aside.

Fifth is Profiles, which provides information on Domo users that is essential for effective collaboration and assigning roles and responsibilities. It also provides the means to contact them and even connect with them on social media. This enhances personalization and enables dialogue to interact and improve, and is an excellent complement to DomoBuzz.

vr_DAC_20_justification_for_data_preparationTo utilize Domo requires gathering data from any necessary application, system or source, and the company has invested to ensure that data access is not a barrier.

Domo Magic shortens the time from data to insight and action by enabling users to transform the data. Our data and analytics in the cloud benchmark research finds that the most common impediment to efficiency in using analytics is the time spent on data-related tasks like preparing data (cited by 55%) and reviewing data for quality and consistency issues (48%). Domo Magic allows business professionals to click on and connect to data sources and extract data without IT involvement. It takes a visual approach to data mashups and what we call data preparation that blends the selection, merging and flow of data in ways much easier to use than standard ETL or data integration.

It’s simple to connect to specific data sources through a variety of connectors that can mash up data from many application sources, social media and Internet information sources, which our research reveals as the top three most important external data sources, each cited by more than 40 percent of organizations. Domo also easily connects to IT integration tools such as those from Informatica, which I saw demonstrated, and other enterprise data sources from its cloud-based environment.

To help new users get started, Domo VR2015_LeadershipAwardWinnersupplies a range of QuickStart Apps that facilitate connecting to data sources and role- and industry-based applications. All of these apps are available on the Web and mobile devices so there is little or no load on IT to support Domo.

At Domopalooza the company showcased customers that have found the Domo approach easy to use. We heard testimony from SAB Miller, Schneider Electric, Stance and dozens of others. Our firm was so impressed that we selected SAB Miller (led by Ross Moncur, group head of business analytics) for the 2015 Ventana Research Leadership Award in Business Analytics. The overview video provides a glimpse of the dynamics of what SAB Miller has done with Domo and how it is using analytics to business advantage. It harnessed a significant number of data sources into a single application to guide and execute on business performance.

Domo has created a new generation of software to help organizations manage their business to optimal performance using analytics, collaboration, personalization, presentation and project and task management, all in an application that helps people optimize their processes and improve their actions and decisions. It is not a typical analytics or visualization product but cloud-based software that accelerates the time to gain insights from data, take action and achieve desired outcomes in a new way. Timing in the market for software is always essential for success, and in this case Domo has arrived during a transformation in how businesses will use information and technology to manage and optimize their efforts. They are looking for more than dashboards and pretty visualization but at the same time want software that any of their employees can use, not just analysts or data scientists. If you have not taken a look at Domo, now is a good time to do so.

Regards,

Mark Smith

CEO and Chief Research Officer

Research Agenda: Technology Innovation for Business in 2015

This year presents much opportunity for organizations to use a new generation of technology to compete better, be more efficient in their business operations and engage their workforces to their full potential. We have identified and begun to track the following next-generation technologies: analytics, big data, VentanaResearchLogo300pxcollaboration, cloud computing, mobile technology and social media, and in 2014 we added wearable computing to the list. In 2015 we will intensify our focus on all of them specifically in our research agenda and as part of our line of business research agendas.

Shifting to next-generation technologies in business processes can not only add new capabilities but help reduce the high cost of maintaining existing systems. Inefficient legacy systems and outdated approaches often hold back the potential of a business by consuming time and resources and forcing people to spend time on tasks that impede productivity and don’t add value to the business. Many organizations also are concerned with simplifying governance, risk and compliance of their business processes and workforce activities. Fully engaging the workforce is a concern for executives and providing a self-Untitled 2service approach to human resources and related information can help improve the effectiveness of employees. To take advantage of new technologies business users and managers must get involved and work with IT professionals in evaluating and adopting technology ensuring the security of systems and underlying data. Our 2014 Ventana Research Business Technology and Leadership Awards recognize organizations that have taken steps to maximize use of these innovative technologies.

Among these next-generation technologies, last year our various research projects made clear that analytics is the top technology priority for businesses; many organizations invested in  this area and also in data preparation to produce reliable, standardized data. After decades of leaving management of business intelligence tools to IT, the lines of business have taken an active role to acquire a better understanding of what is required for analysts and business professionals who are held accountable for the outcomes of their activities and need capable tools to access metrics and facilitate improvement. Many business areas asserted themselves in applying analytics to business processes, including finance, human resources, operations, the supply chain, sales, marketing and customer service. Many organizations are using timely metrics derived from analytics and made easy to read in dashboards, and more of them are coming to see the value of applying predictive analytics and data discovery to identify opportunities and view them through visualization methods. Those on the leading edge represent the results of analysis in geographic and natural-language contexts known as narratives that can explain or tell a story from the actual data. Such means of presenting results can help analysts keep up with the demand for actionable information from business professionals.

Another new technology, big data, is intimately connected to vr_Big_Data_Analytics_12_benefits_of_visualizing_big_dataanalytics. This burden grows heavier with the proliferation of volumes; drawing on these sources organizations need big data analytics to become more intelligent and less dependent on individuals to decipher meaning from data. At the same time the flow of data and events from machines and what is called the Internet of Things in real time introduces new challenges that for operational intelligence systems that support event-focused information gathering and delivery processes. Our research into big data analytics finds that better communications and knowledge sharing was the top benefit organizations realized from applying analytics, which is enabled by presenting information in easily understand forms. A major benefit in visualizing big data is better understanding of content, according to 45 percent of organizations in our big data research. As types and volumes of data continue to increase, organizations will need robust strategies for analytics and data management, including selecting technologies that help them stay competitive and gain business advantage.

We saw advances in big data in 2014 as organizations began to move beyond use of standard RDBMSs to Hadoop and a vr_BDI_08_benefits_of_big_data_integrationnew generation of big data machines that are blending technologies and approaches. Hadoop-focused technology companies received significant amounts of investment capital to continue their efforts, and it is clear that these systems must become part of enterprise and information architectures, focusing attention on how to integrate them. Advances in big data and information management revealed an increasing need for information optimization, which focuses on getting information to business professionals in actionable forms. This information need requires efficient integration of data across systems both in the enterprise and in cloud computing environments. In our research into big data integration 39 percent of organizations said it is important to make information available in a consistent manner. Big data will be more important for organizations in 2015, and they should not be overlook its integration with analytics and business operations.

Cloud computing is an increasingly popular option as businesses try to deal with the flood of data and learn from it. In 2014, it became even more widespread in a variety of private and public vr_BDI_07_types_of_data_integration_processesapproaches. But many organizations are still holding on to on-premises systems, many of which have become antiquated and expensive to maintain. Most suppliers of business applications and tools now offer cloud deployment through their own or leased data center facilities or environments such as Amazon Web Services. Some businesses can reduce significantly the load on IT by packaging their specific environments through virtualization and deploying them in the cloud. Essentially cloud computing is a means to onboard and use applications more easily and reduce the overhead of paying in-house IT professionals responsible for implementation, maintenance and upgrades of business systems. Our research shows that cloud computing has declined Untitledimportance in technology innovation, but we attribute this to its acceptance as a method for accessing and licensing software. However, cloud computing has become a more important priority regarding integration of data; one-quarter of organizations in our big data integration research said that is a priority now and through 2016.

Collaboration technology, both business and social, which enables business professionals to interact in a variety of methods, is gaining traction more slowly than others as technology suppliers focus more on designing the user experience than the interactions. But we find that business professionals recognize the importance of collaboration across the lines of business. In our benchmark research on next-generation customer analytics collaboration was deemed important more than the other next-generation, selected by almost two-thirds (62%) of organizations. A key purpose of this technology is to streamline the activities that involve groups of individuals; doing that can improve business process effectiveness. The most widely used methods are well established, such as discussion forums and videoconferencing, but social media approaches including activity streams, broadcasts and postings are increasing in importance; social recognition for contributing to or accomplishing tasks is the social collaboration method most organizations are planning to use (29%).  The approach called gamification, which involves earning badges and awards in contests, is a method that 37 percent are planning to use or evaluating. If implemented properly and in tight conjunction with applications, collaboration can raise the level of interaction and engagement among the workforce and ultimately increase efficiency and outcomes. Embedding collaboration in business processes and applications should be a focal point in 2015.

In the area of mobile technology, business use of smartphones and tablets advanced in 2014, and more is still to come. The diversity of devices running Apple, Android and even Microsoft mobile operating systems being brought in by workers makes it challenge to establish a standard set of applications for business. The most common preference is for Apple smartphones (57%) and tablets (67%), with Google Android being a distant second, in one-fifth of organizations, and Microsoft Mobile trailing at 5 to 8 percent, according to our next-generation learning management research. Even so “bring your own device” (BYOD) maintains a strong presence in many organizations.

Nor have suppliers of mobile applications standardized on a common user experience that can operate natively across devices and does not require the pinching of fingers to zoom in and out of the application to operate it. While this might seem a simple goal, it requires significant investment by suppliers to realize it. Additionally, suppliers hesitate to commit as they assess the level of demand for Microsoft Surface tablets, for which Microsoft had challenge in 2014 and appears headed for more changes in 2015. However, manufacturers of notebooks running Microsoft Windows continue to make them smaller and thinner with touch-screen interfaces, becoming closer to tablet size and usage styles; still most software providers have yet to invest in converting their applications to touch and gesture based on Windows 8 and now Windows 10. For their part, business organizations should begin to rationalize their mobile approach and communicate priorities to their main software suppliers to ensure that their employees can truly be mobile.

The newest entry in mobile technology is wearable computing that enables people to attach technology to their bodies in the forms of watches, jewelry or clothes. This advance in miniaturization has introduced devices that can assist business users through receiving notifications and other communications to tracking the relation of time worked to tasks accomplished. In 2014 we awarded Apple the Technology Innovation Award for the Apple Watch, which is taking the first generation of smart watches to the next level of biometric and commerce enablement. Health and wellness use of technologies such as FitBit and others have advanced past prototype phases and into production. Most interesting is gamification of the wellness information collected in real time from individuals or manually entered data; it has generated contests and inspired motivation for improvement. In 2014 only small steps were taken by a few workforce management Ventana_Research_Benchmark_Logovendors to build prototypes and initial versions of such devices for time and attendance along with notifications. The potential of these devices in sales, field service and workforce management applications is significant, but software suppliers will need organizations interested in taking a leading edge to commit to the technologies to justify expanding their R&D investments. Organizations seeking to engage and improve the productivity, safety and wellness of their workers could find wearable computing a useful business tool within three years.

In evaluating any of these next-generation technologies functionality alone is not a sufficient consideration. Issues of usability, manageability and reliability appear to be as important to organizations, or more so, in all of our benchmark research in 2014. In particular, usability and the user experience for all roles and competencies is not to be underestimated. Software must be able to adapt to and support the tasks and responsibilities of its users, but we find that many technology suppliers are still not taking this as seriously as they should in their R&D efforts. In addition companies striving to improve their performance should consider people, process, information and technology in a balanced approach to gain the best possible outcomes from any technology investment. Organizations should refocus their RFI and RFP methods to ensure they select technology that can serve all the intended roles and responsibilities of their organization.

To learn more about our business technology innovation research agenda for 2015, please download the presentation to see how you can supercharge your business with technology.Ventana_Research_2014_Tech_Innovation_Award_Main To see what your peers and leading suppliers are doing, check our Ventana Research Technology Innovation Awards. For more personal discussions of advanced technology for business, tune in the replay of the 2014 Ventana Research Summit to hear presentations and panels on the topics I have discussed here. It looks like 2015 will be a big year for technology advancements, and businesses will need to be prepared and ready to embrace what they need to be as successful as possible in their business processes and outcomes.

Regards,

Mark Smith

CEO and Chief Research Officer