SageCircle AR Podcast for September 1, 2009

SageCircle AR Podcast ArtworkThe AR podcast is a review of the latest news and trends in the analyst ecosystem along with tips and tricks for analyst relations professionals and analyst research consumers. SageCircle strategists Dave Eckert and Carter Lusher co-host this bi-weekly program. You can find all the SageCircle podcasts on our podcast page.

Click here to listen to the podcast on your computer or visit the podcast page to download the MP3 file.  Click here to subscribe to the podcast within iTunes

SCP 8: Table of contents. Numbers in parentheses refer to minutes:seconds when the article starts within the podcast.

(00:00) Introduction

(01:01) News – Altimeter Group – Forrester superstars Jeremiah Owyang and R “Ray” Wang join and expand coverage beyond social media

(05:09) If AR does not respond to an analyst

(09:17) Large firms and why they don’t retain superstar analysts

(12:12) Analysts chattering on Twitter and why Continue reading

Superstars Owyang and Wang joining Altimeter Group is not just about social media

Logo - Altimeter GroupOn August 27, 2009, the Altimeter Group announced (click here for press release) that it was expanding with Deborah Schultz and former Forrester analysts R “Ray” Wang and Jeremiah Owyang.  They join Charlene Li, former Forrester social media analyst and co-author of Groundswell: Winning in a World Transformed by Social Technologies . Here are some salient points about the announcement that we picked up from Altimeter’s briefing for SageCircle: 

  • This is a true firm, not a loose collection of individuals operating under a marketing umbrella
  • They are Silicon Valley-based partners which will permit creation of a coherent team and methodology
  • Their coverage emphasis will be on “emerging technologies” not social media
  • The focus will be on thought leadership and practical applications
  • Their business model will incorporate many traditional analyst firm elements (e.g., vendor selection, training, consulting, and speeches) with the addition of a hands-on lab and a community platform
  • Regularly published, client-only research is not part of the model

Because of the partners association with social media – as analysts, corporate practitioners, and personal usage – the coverage of this announcement will likely give too much play on that aspect. While an important part of Altimeter’s marketing and initial research coverage, SageCircle thinks that focusing on social media misses other more interesting implications of this announcement:

  1. Altimeter has the potential to be a contender (see Boutique Analyst Firms: Pretenders and Contenders) with serious visibility and influence
  2. Altimeter has the potential to grow a serious technology buyer client base, maybe over 50%, unlike most single practitioners and analyst boutiques that rely on vendors for revenues
  3. A technology buyer client base when combined with its vendor selection services should increase Altimeter’s relevance to vendor analyst relations (AR) and other influencer programs
  4. Altimeter has the potential to systematically cover Continue reading

Why large advisory analyst firms don’t seem to mind losing superstar analysts

By SageCircle with special guest contributor Gerry van Zandt

Update 9/24/09 2:05 pm PT: We are receiving links to interesting related posts that we are now adding to bottom of this post.

The recent departure of Forrester analysts R “Ray” Wang (personal-branded blog, Twitter handle) and Jeremiah Owyang (personal-branded blog, Twitter handle) has prompted the usual commentary and hand-wringing around what these departures mean. Questions we’ve heard center around: a) do the departures signal the demise of traditional analyst firms; and b)  and why analyst firms cannot keep their superstars.

Answers: no; and maybe they don’t want to.

Remember that superstars have always been leaving analyst firms. In the 1980s, George Colony and Tony Friscia left Yankee to form Forrester and AMR, and Dale Kutnick left GartnerGroup to launch META Group. In the 1990s, Gideon Gartner left Gartner to create Giga, and a group of Gartner analysts left and launched Jupiter Communications (while a number of Gartner analysts did join Jupiter, they did not co-found it).  These are just examples where the superstars founded what became good-sized firms with many analysts. There are many more examples where superstars have become successful single practitioners or have intentionally kept their firms at a “boutique” size.

There was a similar burst of twittering (in the old fashioned sense of the word) when social media superstar and Groundswell co-author Charlene Li (blogTwitter handle) and two other social media analysts left Forrester Research in the summer of 2008 (see Bursts of analyst departures in a hot research area are not unusual). So was Forrester doomed? Not at all. It still retained Groundswell co-author Josh Bernoff (blog, Twitter handle). It also had a cadre of social media analysts built organically and expanded via the JupiterResearch acquisition, and it had a very promising young analyst who already had high visibility but had not yet achieved superstar status yet – Jeremiah Owyang. Fast forward a year, and Forrester has lost another social media superstar. Oh, woe is them! Not really. The fortunes of large, successful industry analyst firms do not rise or fall based on a single superstar. Forrester still has a large and strong team of analysts covering social media from many different angles. In fact, among the traditional IT and telecommunications analyst firms, Forrester clearly has the best and most prominent social media research coverage. This is partly because it caters to enterprise marketing professionals in both its end-user and vendor client bases, not just the IT department.

So why don’t firms like Forrester or Gartner keep their superstars? In some cases they can’t because the superstar is itching to start their own Continue reading

Ray Wang leaves Forrester – normal course of business

Photo - Ray WangWhen it became known that Forrester enterprise applications analyst extraordinaire R “Ray” Wang (blog, Twitter handle) was leaving the firm, it left some folks atwitter on Twitter and blogs (no apologies for the atrocious pun) (e.g., see Ray Wang departing Forrester). What does Ray’s departure mean? Does it portend broader changes in the analyst ecosystem? 

Well, no. This is just the normal change that happens at every firm and most every individual’s career. As we pointed out a year ago in Bursts of analyst departures in a hot research area is not unusual, there are always analysts leaving firms for a variety of reasons. The reasons that Ray gave in his blog post Thursday’s Thanks: It’s Been A Great 5 Years! are very typical: more time with family and a change in research focus that did not necessarily fit in with his job and Forrester’s business model. While Forrester does not like losing a valuable, high profile employee as Ray, it has lots of smart analysts covering the same market as Ray so there will be little short or long term impact on Forrester’s business.

Here are some quick replies to comments we have seen.

Vinnie Mirchandani, former Gartner analyst and single practitioner at Deal Architect says in Fellow rebel, Ray Wang that superstar analysts like Ray are under-compensated by the major firms. We reply – So? As Vinnie himself pointed out that has always been the case. As a consequence compensation is no big deal and the major firms have always been able to recruit smart folks, turn them into superstars, and replace them when necessary. However, a lot of very smart analysts stay at the major firms even if in theory they could make more money elsewhere.

James Governor of Redmonk (Twitter handle, blog) in a tweet says “wondering why Forrester analysts leave, while Gartner analysts do not.” Our response – Guess what? Analysts do leave Gartner, probably Continue reading

Don’t underestimate the visibility a blog can provide an analyst

An interesting exercise is to compare the relative web traffic between the largest advisory analyst firm (Gartner), the largest IT market research firm (IDC) and a very visible analyst who has his own blog. Using the site comparison feature of Compete here is the graphic showing Forrester analyst extraordinaire and social media poster boy Jeremiah Owyang’s (bio, Twitter handle, blog) personal blog Web Strategy by Jeremiah, Gartner.com and IDC.com:

Traffic comparison Gartner.com IDC.com and Jeremiah Owyang blog 

Click here or on the graphic to enlarge. The top blue line is Jeremiah’s blog, the green middle line is Gartner.com and the bottom orange line is IDC.com. There is not a single month in the past year where Web Strategy by Jeremiah did not receive more unique visitors (an average of 136,000 per month) than Gartner.com and IDC.com combined.

Not an apples-to-apples comparison… and that is the point 

Of course, comparing two very different types of websites, a blog vs. corporate sites, is not an apples-to-apples assessment. Rather this illustrates how a savvy analyst can leverage a personally branded blog to obtain unique access to a broader audience than he could even on the regular research website of a $1.2bn but very traditional analyst firm. This is because the analyst blog is easily Continue reading

An update on Twitter and the industry analysts – activity grows

icon-social-media-blue.jpgWith industry analysts continuing to sign up for Twitter handles – we have added 67 names in last two weeks – we thought it was time to do a quick refresher on how analysts are using Twitter.

A significant example you should read is Gartner analyst Jeffrey Mann discussing why he uses Twitter in his blog post Why I Tweet. In a very short post, Jeff covers a lot of ground in terms of the value he gets from Twitter. Here is a killer extract from that post: “I have used it to test out ideas that eventually make their way into this blog or my more formal research notes.” Hmm, that says to me that any AR team that deals with Jeffrey needs to part of that conversation.  How many other analysts are doing the same thing?  Have you done an inquiry with your key analysts?

 Listed below are some tweets that we believe illustrate well the different uses of Twitter by the analysts. Each shows the value of AR teams being on Twitter and following analysts.

 EXAMPLE: Analyst discussing customer information after I tweeted a question to his comment about the customer presentations at a vendor event. This shows a quick and easy dialog finding out what sort of information the analyst prefers

 rwang0 Hearing some very industry specific and solution focused customer presentations at the Progress Software event

rwang0 @carterlusher customers who present their problem, how the tech addressed the solution, & what was the business and tech benefits are best

EXAMPLE: Journalist asking analyst about a vendor announcement. This could signal that the journalist might have a formal interview with the analyst later. Continue reading

Forrester’s Ray Wang on analyst usage of social media

icon-social-media-blue.jpgRay dropped by the analyst and AR meet up that SageCircle hosted on Monday, January 12, 2009 in the Silicon Valley. We asked Ray (blog, Twitter handle) to explain how he uses social media in his job.

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