Strong Opinions @marksbirch

Random thoughts from a NYC entrepreneur and investor about start-ups, technology and the people that make it all happen. Also find time for good tunes and good food.
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Some smart thoughts on the massive $357 billion transfer in IT spend that is about to happen as a new wave of enterprise business apps companies emerge.




Enormous changes are afoot in the C-suite at companies at every level of scale and growth. We built Bowery Capital on the thesis that roughly $357 billion would change hands over the next ten years through the swapping out of old technology for new. This perspective comes from years of seeing Internet natives becoming IT decision-makers, a concept on the rise, but this is something we are just at the beginning of.

When we look at the current state of enterprise tech, we also see a massive tectonic shift of technology dollars in the works.  We are not quite there yet mostly because we are in a generational leadership cycle where digital natives (and even more potentially disruptive mobile natives) are just entering the C-suite and enterprise has lagged somewhat in adopting the innovations brought in through the consumer tech space.  Enterprise 2.0 has been more of a whimper rather than a roar of disruption.

That being said, Mike brings up a couple of very critical points that will lead this shift towards a new generation of enterprise technology leaders:

  • Disintermediation of IT
  • Deep Verticalization

Consumer tech has influenced the enterprise in two ways.  First, it has made the general public much more savvy and hands on with technology.  You can thank Apple and the iPhone for that.  But even more so was the App Store and the idea of snackable apps that let anyone try unlimited numbers of apps for free or for just a few dollars.  This leads to the second key point which is that apps have taught consumers to expect better experiences.  When you had to pay tens or hundreds of dollars for software, consumers just gutted out poor user experiences because they had little choice but to use the software.  Now if an app does not meet expectations immediately, it can be deleted without a thought.

Those same expectations are driving user behavior in enterprises where users are voting with their smartphones and tablets the type of apps they will use.  The result is that they are avoiding the corporate sanctioned apps and using readily available apps from the app store that are much better and provide higher value of immediate value to employees.  This means that the corporate rollout of Salesforce gets passed over by sales reps for apps that actually give them immediate value and make their jobs easier.  It is not IT that is delivering value to user through technology, it is users themselves bringing in and owning the technology infrastructure.

The other trend that is accelerating is the desire for companies to seek industry specific versions of horizontal software.  At Enhatch, we have encountered companies in the medical device space, the building supply industry, and the big-ticket industrial manufacturing market that have CRM but have gotten little usage.  Why?  Because the software does not work for the people in the field and how they do business.  It is not as simple as changing labels on screens with industry appropriate lingo, it is about the workflow and processes that are specific to particular industries and how easy it is to mold those elements into the software.

With Enhatch, we have melded these trends of verticalization and disintermediation.  Our platform gives enterprises both the flexibility to create apps that users want while incorporating industry specific functionality.  That we do this in a way that gives the task of app creation to user themselves is what changes the entire dynamic of software delivery in organizations.  CMO’s and CSO’s have direct control over what and when and how of the apps that enable their business units.  That is where the real shift in tech dollars will be happening and why the Oracle’s and SAP’s of the world that control the CIO office today are going to be quaking in their boots.


"Let’s solve this problem by using the Big Data none of us have the slightest idea what to do with." by Tom Fishburne

Some Sunday evening humor from Team Enhatch.  Funny thing though, you could probably say the same about CRM.  Many companies implemented CRM to solve the problem of fostering stronger customer relationships, yet somehow it missed the mark because it was too hard to implement or the people supposed to use it simply never used it.  They never thought about the missing link; engagement.

Big Data, CRM, Business Intelligence, Cloud Computing, Omni-channel Marketing…I could on with an endless list of tech buzzwords tossed around over the past twenty years.  You can implement any technology you wish, but ultimately you got to ask yourself what exactly are you solving?

But what I want to talk about today is the empty box problem. What I hope to convince you of today is that the problem of the empty box for IBM is the same problem that enterprises face when trying to deliver great user experiences. The modern process of creating great UX sits counter to the modern operating processes of large enterprises.

So why did it take IBM 9 weeks to ship an empty box? Quite simply it is a matter of physics. The mass of IBM was so large that the energy required to move anything through it equaled at minimum 9 weeks.

Large enterprise clients have similar problems with doing anything. Just to wrap their hands around a problem requires the problem to be of a certain size.

Shipping an Empty Box – UX in the Enterprise by Jon Lax

An absolutely brilliant read about the challenges of implementing great user experiences within large companies.  Sometimes we refer to this as the turning the aircraft carrier problem, where it takes so long to execute the turn that it impacts every other facet of operating the ship.  Course corrections are just not possible given the size of the ship.

However, change is in the air as the article goes onto explaining. Time to market is becoming more critical for enterprises as markets change faster and respond faster to change.  The consumerization of the enterprise is ushering in innovation at the grassroots with devices and apps that give power to end-users.  And technologies providers are adapting to these new realities by offering tools that empower users to own and guide experiences.  That speaks directly to what we are doing with Enhatch and how we enable sales & marketing teams to deploy mobile apps geared for their needs.

(via enhatch)

(via enhatch)



Savvy entrepreneurs and venture investors tend to “think big”, meaning that they build companies that go after big markets and especially those with incumbents that are ripe for disruption. As a venture capital investor, on the top of my list for 2014? Enterprise software, a $120 billion dollar market dominated by a small handful of very large and 20+ year-old vendors. Due to the profound technological shifts of SaaS and mobile, these giants are incredibly vulnerable to disruption and are starting to come under siege by a new generation of scrappy, forward-thinking challengers. The stakes in this war are enormous. To underscore the scale, consider that four of the largest players (Microsoft, IBM, Oracle and SAP) account for more than $750 billion dollars of market capitalization.

I agree with much of this and all told the next wave of enterprise software will be even greater to become a trillion-dollar market.  Why such a large market?  Because the four big vendors do not even account for the numerous vertical industries that have their own unique platforms or even lack any software platform to begin with.  The other factor is that the current wave of SaaS vendors will soon buckle under the weight of overwrought platforms that have been built out over the course of a decade.  They have done a remarkable job taking marketshare from the previous generation of enterprise vendors.  With mobile apps taking over the enterprise however, the newer mobile-first / mobile-only software providers will quickly eat into the Web SaaS companies.  They are all in the castle together and the mobile crusaders are coming to bring down the enterprise empire to establish a new order.  This will be fun to watch.

The Future Of Mobile!

It is clear where the growth is happening, and this is very same trend is happening in the enterprise.  Our only quibble with Henry’s excellent (and data rich) presentation is the assertion that you should not be “mobile only”.  That is true for the existing players in the enterprise SaaS space because they have to be there to support customers.  However, that is not where innovation and breakthrough technology is occurring, and it is not the place to battle incumbents.

If you are a new enterprise SaaS business apps startup and are not mobile-first, you are quickly find yourself becoming irrelevant.  And while in the interim there may still be the need for a web presence, the chart above should clearly tell you where the market is heading.  It will be a mobile-only world before we know it, and that holds true for the enterprises as well. (via enhatch)

You could say that mobile is eating the world, but I won’t do that…

Make it tablet-y! No one wants a PC experience replicated exactly on a tablet.

Is the enterprise user experience overhyped? via diginomica

This is why enterprise Web SaaS apps cannot deliver on a stellar and engaging mobile experience.  They are pushing busy, text field oriented interfaces onto a smaller screen with very different navigational controls and user flows.  This is a cognitive disconnect that causes users to abandon mobile apps in droves.  It’s much better to start mobile first.

(via enhatch)

(via enhatch)


I am unsure that an IT department can create the perfect enterprise app because they probably don’t suffer from the same pain that the “business” people suffer from.  All the customer development and wireframes in the world does not replace the pure understanding of the pain…

This changes the entire game.  Getting IT out of the business applications business is a huge mindset change, but doing it could lead us to much better systems that are oriented to what users actually need.

A new tipping point in the world of tablets: today the analysts at Gartner have released their tablet sales numbers for 2013, and Android has topped the list for the most popular platform for the first time, outselling Apple’s range of iPad tablets nearly twofold. Of the 195 million tablets sold in 2013, Android took nearly 62% of sales on 121 million tablets, while Apple sold 70 million iPad tablets for a 36% share.

Gartner: 195M Tablets Sold In 2013, Android Grabs Top Spot From iPad With 62% Share via TechCrunch

It is still an Apple world however when it comes to enterprises, where Apple tablets command over a 90% share.  Now that is something I would have never expected, but the more restrictive nature of Apple’s ecosystem and iOS have made the iPad a more desirable choice for companies.  This will surely change over time, but that is a pretty impressive display of mindshare in the enterprise.


It is a user driven rebellion that began with BYOD and expanded to BYOA (Bring Your Own App).  Salespeople are now routinely using apps like Evernote and Box to store, retrieve, modify, and share sensitive corporate data, data that companies have no knowledge or control over.  If companies plan to bring back users and their data, they will need to design apps with the end user in mind on the devices they would rather use. 

The revolution is on and mobile first apps will upend the traditionally staid world of enterprise business software.  Even the web-based SaaS companies will not be safe from this movement.

Analysts at Gartner predict that by 2017 the chief marketing officer will spend more on technology than the chief information officer.

Enter the Chief Marketing Technologist via Direct Marketing News

Calculating marketing ROI in the past has usually been a back of the napkin type of analysis.  With the advent of the web and mobile world, the data available to marketers is such that they do not have the option of technical ignorance.  The new CMO will be as much a marketer as a technologist, and they will be much more active and savvy with the tools for deep data and ROI analysis.  Expect to see more and more of a shift of enterprise business technologies purchased and managed by the business rather than by IT departments.

(via enhatch)

(via enhatch)