As the title suggests, Forrester believes that information and knowledge management professionals who deal with public websites need to use a mix of different technologies from an ecosystem of providers – no single platform will meet all of their needs.

According to the report’s authors, Stephen Powers, Matthew Brown and Peter Schmidt, the shaky economy has increased pressure on companies to engage customers more efficiently online. We agree that websites offer unmatchable economies of scale when it comes to interacting with customers, enabling better lead generation, increasing engagement, conversions and customer retention rates.

What the report doesn’t say is that the emergence of the real-time Web has also accelerated the need for technologies that can dynamically personalize the online experience and keep pace with rising consumer expectations for instant gratification. We believe this trend will be an even bigger catalyst for investing in these technologies in the months and years to come.

Forrester sees investments rising too:

“Our most recent data suggests this trend will continue into the next year. Consider that in 2010, 51% of organizations plan content management implementations, more than one-third will implement or upgrade customer relationship management tools, and one in four is planning marketing automation software investments.”

While investments in online customer experience technologies are on the rise, Forrester notes that time-to-market for site changes, campaigns, and customer experiences have suffered. According to their client inquiries, “disjointed technology has become a prime factor behind time-to-market issues and the ability to achieve improved online processes.”

If companies can’t rely exclusively on WCM or enterprise marketing suites to support online customer engagement, then what does the bigger ecosystem look like?

Forrester puts several players, including Baynote, into three categories:

Content management vendors include traditional WCM players like SDL, Tridion, Autonomy as well as ECM vendors that offer the fundamentals, plus interactive delivery.

Enterprise marketing vendors include Alterian, Aprimo, Omniture, and Unica, who mainly support campaign management.

New breed engagement vendors, such as Baynote, Backbase and Kapow Technologies, support next-generation Websites.

According to the report, new breed engagement vendors fill important gaps in the overall ecosystem and will be critical pieces of next-generation, more personalized and adaptive websites in the future. We couldn’t agree more.

The excitement reached a fever pitch on Dec. 7 when Google announced it would begin displaying real-time results in its searches.

It’s an electrifying time to be a part of the Web to say the least, and it’s nice to see real-time at the forefront of conversation in the media and at industry events I’m attending.

Given that Baynote is focused on mining real-time implicit behavior on the Web, I’ve been asked lately on numerous occasions what my perspective on the real-time Web is.  Rob Hof, previously of BusinessWeek, also recognized our leadership in real-time back in August, when he featured Baynote as fifth on the list of real-time Web start-ups, behind the likes of Twitter, Facebook and Aardvark.

My take? I believe we are on the cusp of a brand new Web, one that will be driven by the power to tap into both real-time explicit and implicit intelligence, as well as the Collective Intelligence of all Internet users. Although much of the recent excitement about the real-time Web has been focused on gathering and making sense of explicit feedback captured in published sources, such as Twitter, you cannot possibly observe the Web merely by looking at it or reading it. Further, ninety-nine percent of what happens on the Web is never written, never rated, never reviewed. It’s told through implicit behaviors in the form of mouse patterns, clicks and hovers to name a few. It’s told through intent.

In the real-time Web, you can’t just watch what people say, you have to watch what they do.

At Baynote, we are focused on the business use cases of real-time, providing companies with the tools to tap into the implicit behaviors of customers on their sites, and learn, adapt and take action automatically. This Collective Intelligence is reflective of the silent majority, not the loud minority. It is free of bias, and requires no manual processing or analysis.

As the fever pitch for real-time continues to grow, we look forward to helping companies become smarter, more personalized, real-time businesses on the much longer road to actualizing a truly real-time Web. We will continue to watch this trend carefully and plan to write more about the real-time Web for business here in 2010.

Stay tuned for more insight.

About 300 delegates, most of whom are returnees already working in China such as Robin Li of Baidu.com, were chosen, and I was one of the 18 representatives from the United States, and one of only four CEOs. A part of my function as a delegate was to attend the PRC’s 60 year anniversary celebration in Beijing on October 1^st. I was honored to be in such a momentous event, and was impressed with President Hu’s address to the delegates where he laid out his plan to focus China’s economic vision on innovation.

President Hu has engaged with the delegates in a similar way that Baynote applies its technology for our customers: He is taking wisdom of the crowds to make more well-informed decisions.

Here are some photos that I took that capture the essence of the celebration:

When I returned to Silicon Valley, I was energized and enthusiastic that the work we are doing at Baynote is making an impact beyond the borders of the United States. It was humbling to be surrounded by some of the smartest minds in the world, from scientists and professors, to entrepreneurs, who have all made a strong impact on technology innovation.

My visit to China was followed by a meeting at Baynote’s Cupertino offices with Mr. Li Yuanchao, head of China’s Organization Department of the Central Government and member of the Central Committee Political Bureau, and a delegation of several Ministers and the Chinese Ambassador to the United States. Mr. Li toured Baynote as well as four other Silicon Valley companies, including Cisco and Google, during his brief trip to California. The purpose of his trip was to learn from us how to operate technology-focused companies that are economically successful and technologically innovative so he could take what he learned and apply it to China’s plans.

Included below are some key points that I made during my presentation to Mr. Li. My goal in this presentation was to give him a better sense of what entrepreneurship is all about, and to pass on some lessons that I have learned over the years that are applicable around the world.

• It’s all in the people. Get the right people on the bus and the wrong ones off, and then decide where to drive. You need talents with experience, education, but more importantly with passion!
• A startup is a process. Research the market in the real world by talking to potential buyers and tapping into the wisdom of crowds. Don’t take no as a bad feedback. On the contrary, too many yes’s mean caution.
• A few things must be created from day one: A core team, leapfrog innovations, and a culture that will serve as the foundation throughout the company’s journey.
• It’s ok to fail many times. Without moments of despair, you don’t have a lasting startup. Take a flywheel iterative approach to anything: market, technology, business model…
• In order to succeed, you must have a strong desire to learn and change: Be open to learning from your peers and taking constructive criticism, as it allows for growth. Did I mention the wisdom of crowds?!
• Always challenge the conventional norm.
• Be open and direct. There is no place for politics in startups.

Mr. Li’s visit encouraged me that President Hu’s initiative is very real and imminent. We may see a Silicon Valley in China in the future, a great thing for the international collaboration for technology development. I look forward to seeing how Baynote’s input will be applied to China’s efforts to improve technology and science – not only throughout the region but around the world.

You see, the NASA.gov website uses Baynote to understand its visitors’ true intent and produce social search results as well as content and video recommendations that are most appropriate to each individual visitor. So every time NASA launches a manned mission or deploys a rover or slams something into the lunar surface at twice the speed of a bullet, a little bit of Baynote is out there, too.

This morning’s culmination of the LCROSS mission marked the second busiest day NASA’s website has ever weathered, with millions of concurrent users around the world watching live video and reading about the mission, and Baynote’s recommendations never missed a beat. So congratulations to NASA on another job well done, and thanks for taking us along for the ride.

While The Baynote Collective Intelligence Platform delivers the best products and content to website visitors automatically through the use of a very scalable technology platform, our professional services organization(PSO) has been at the core of every customer success we’ve enjoyed as a company. Here is a brief look into our processes.

Education. Education at Baynote starts on our first call by explaining our core methodologies in cross-channel content and product targeting, but it continues with an engaged PSO delivering best practices to our customers ensuring they get the most value out of our technology platform.

Implementation. Our solutions are served via Software-as-a-Service SaaS, therefore our implementations are not resource intensive. Still our PSO team is quick and responsive during the implementation process.

Training. Again, Baynote is automated, but we do have a reporting and editorial interface for delivering business intelligence and control over our recommendations delivered. Despite the intuitive nature of our tool, our customer engagement managers ensures that our clients are well versed with the interface.

Support and Custom Applications. For customers that have special needs, our professional services team will assist with more complex integrations or building custom applications driven by data exposed through our API.

Today I had an enlightening conversation with one such vendor. He spoke highly of his merchandisers and explained their extensive knowledge of the business. He questioned the need of a recommendation engine when he had access to such experienced merchandisers. Point well taken. This continues to be a hurdle for many recommendation companies trying to break into the ecommerce industry. Lets move the conversation away from an “either or” scenario. Combining your experienced merchandisers with automated intent driven recommendations incorporates the knowledge of your business experts with the collective intelligence of your website visitors.

We’ve spent many resources on our merchandising console within our reporting interface Baynote Insights to facilitate this goal of “merchandising harmony.” For the last few months our clients have been combining our recommendations technology with their merchandising expertise to deliver an enhanced user experience while increasing conversion rates and average order values. Why substitute when you can combine?

Web Applications like Baynote Social Search are excellent at solving a specific problem across many different types of businesses. However, the power of Social Search is only possible because of the SaaS platform that drives it, the Collective Intelligence Platform(CIP). SaaS platforms drive powerful applications that can be custom fit or designed specifically for a designated use through the API. A robust platform will provide access to relevant data which in turn can be used to develop valuable applications. As companies continue to differentiate their product offerings, custom software solutions become increasingly necessary while making it difficult to create “one-size-fits-all” web applications. Today data is the most valuable commodity and SaaS platforms, like the Baynote CIP, provide companies with the tools necessary to build applications with highly relevant data.

Capturing the expended energy of users on the web and using it to drive content delivery is a logical step in the evolution of the web. It seems IT directors have acknowledged this opportunity to leverage the users of their sites and will likely continue to adopt these technologies to enhance the user experience and cut costs by eliminating more expensive processes previously utilized.

Here’s a quick description:

In this talk we will explore, how startups have applied the wisdom of crowds to create unique business opportunities and how they are building monetizable business models. Hear from founders of Baynote, Jigsaw, 8020 Publishing and Satisfaction, who are using their communities’ wisdom or knowhow to drive their companies’ business models.

Find more details on the event here.