B2B Customer-Centric Strategies

Customer-centric strategies have been the mainstay of B2C companies like Amazon and Google. But today B2B the landscape of business-to-business relationships is changing. Industry-leading B2B companies increasingly respond to intensifying global competition by putting customer-centricity and experience at the heart of the strategy. For a very many B2B companies, across many sectors, the growing influence of customer-experience strategies and the bold moves of customer-centric leaders pose a critical challenge.

Traditionally, being successful in the B2B arena has been largely a matter of being in the right markets, offering superior products and services, or being the lowest-cost producer. These advantages have come under threat from increasing global competition and many players have invested in functional excellence. But while these benefits are great, they are dissipating quickly as competitors tap the increased mobility of labor markets and expanded access to knowledge.

This is why the emerging battle in B2B will be fought on the smart combining of digital and non-digital transformation to improve customer experience. A holistic, cross-functional transformation of a company’s core, including its culture, enabled by digitization offers a significant opportunity for differentiation and competitive advantage, especially as new competitors fluent in digital tools move into the B2B space. The trick is striking the right balance between digital and human interaction in B2B’s more complex customer relationships.

Investing in improved customer experience pays dividends. We have seen companies substantially raise customer-satisfaction scores through significant improvements in operational performance. These improvements can lower customer churn by 10 to 15 %, increase the win rate of offers by 20 to 40 percent, and lower costs to serve by up to 50 percent. In parallel, as customer experience improves, employee satisfaction tends to increase as well, because a more direct connection with customers adds meaning to employees’ work and helps them witness customer satisfaction.

Business-to-business customers are already demanding a better experience. In a recent McKinsey survey of 1,000 B2B decision makers, lack of speed in interactions with their suppliers emerged as the number-one “pain point,” mentioned twice as often as price. And digital solutions loom large in executives’ thinking as a way to make routine tasks more efficient. Some 86 percent of respondents said they prefer using self-service tools for reordering, rather than talking to a sales representative.2

Yet the reality at most B2B companies is far from this vision. Many companies often need days to provide a quote, require customers to fill in complicated order forms (often on paper), and frequently leave customers in the dark about the status of their order.

 

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What’s the Number One Number Thing Today’s CEO’s Must Do? Do the OODA Loop Faster and More Innovatively

What’s the Newest Requirement for a CEO? Do the OODA Loop Faster and Better!

You would think it would to generate revenue, profits and reduce costs. Think again. It’s all about iterating and pivoting like a start-up. And who better than a former fighter pilot to teach CEO’s a thing or two about making quick. So I want you to meet John Boyd, who was among many things, a military strategist, colonel and fighter pilot whose theories are highly influential in the military, sports and business.

So why bring up Colonel Boyd in the context of CEO’s and their need to be nimble? Because investors and boards have transitioned from desiring quarterly profits (something that has driven Wall Street and corporations for many years) to searching for leaders to those who have the ability to disrupt their industry or die. What did the fighter pilot, Colonel Boyd used to make those decisions to do something out of the ordinary? He created a framework known as the OODA Loop:

  • Observe (M—ake the best use of the information and other intelligence resources available right now)
  • Orient (Quickly put the new observations into a context with the old)
  • Decide (Make quick decisions and take the “next actions” based on a combination of observations, current knowledge and intuition), and then
  • Act on those decisions to carry out the selected action(s), ideally— while the competitor is still observing your last action so you beat them to the punch!

OODA Loop

                                         Photo Source: Larry Paul

Above is a video from Ralph Mroz on the OODA Loop as applied to business if you want more information!

Observe, Orient, Decide and Act Is Known as John Boyd’s OODA Loop

As a fighter pilot, John had to make decisions in nano-seconds. With this framework of observe, orient, decide and act he way able to describe a way to iterate and pivot, very quickly, and decide if the object in front of them is friend or foe. Not doing so could mean life or death. It could also mean the end to a critical mission.  What does the OODA Loop mean to a CEO? Iterating and pivoting is also mission critical. Just ask the CEO of Ford Motor Company, Chief Executive Mark Fields. He was a 28 year old veteran of the business and was replaced by someone the business thought would be able to disrupt the automotive industry very quickly!

The Message is Simple: Do the OODA Loop Faster or Die

While Mr. Field’s did what most board’s used to expect of a CEO’s, i.e., he returned consistent profits, he did’t make enough changes fast enough. His OODA loop was too slow. But he didn’t know what he didn’t know. He, as many other CEO’s don’t realize that the winds of change are changing all around us. Like in most any industry, the car market has entered into the era of transportation.

It’s no longer just about building and selling a car. It’s about car-as-a-service. Think: ride-sharing (think Lyft, Tesla and ReachNow (by BMW.) It’s also about taking the traditional gasoline engine and transforming it’s power source to be an electric vehicle. And it doesn’t stop there. Some companies are disrupting the industry by experimenting with self-driving technology, making investments in connected cities (think BMW and Santa Monica, CA.) And at the same time Ford’s stock sank. 

How Fast Does Your CEO do The OODA Loop?

How fast do decisions get made? How fast can the ship be turned? Today, with the need to act quickly, the message is simple. We are in an age of rapid disruption by the software and tech industries. A leader of any company has to pick up the tempo and make riskier bets sooner… or die. While it was Mr. Field’s intention to set Ford on a path to be part of the new, emerging auto industry, he just didn’t do it fast enough.

Since Mr. Field’s took over three years ago, the share price of Ford is down 40%. As a CEO, as yourself, “Are you disrupting yourself, your company and your products fast enough? Are you really changing anything or are you just doing the old stuff just faster?” These are not easy questions, but ones that we all need to contend with. Consider you are one company and your are disrupting yourself faster than your competitor. What happens to the competitor?

ooda loop faster to drive innovation @drnatalie

                                                             Photo Source: Larry Paul

As a CEO, Are You On Track?

In military operations, OODA loops takes place in nano-seconds. In corporations, its decisions are often slower. In the old days, strategy was rigidly followed till next years’ planning cycle. But today, that’s no longer an acceptable mindset. And it’s critical to validate we’re on track and if not, correct it. Using a model like the OODA Loop, along with design-thinking which requires to you go and talk to your customers, your employees, customer’s of your competitors, to industries that are similar to your and industries that have nothing to do with yours.

It’s where the kernel of the seeds of innovation are hatched, born and grown into a full idea. The results of your actions become the observations to re-orient you to make your next decision. Quickly repeating the OODA loop equals success. And as you are doing this, you want to make sure you are making real-time changes that are just changes to make changes, but change to create a “Blue Ocean Strategy.” As defined by the author’s of the book, Blue Ocean Strategy, CEO’s need to quickly create an uncontested marketplace, where the competition is irrelevant.

Who’s Slow to the OODA Loop?

According to the article by Christopher Mims of the Wall Street JournalRonald Boire of Barnes & Noble, GNC Holdings’ Mike Archbold and top executives at three of the six major Hollywood studios making changes faster is very important. Where to look for inspiration? According to Mr. Mims, unlike large corporations, startups don’t need decades to make the changes the businesses need to succeed in the new world. They are nimble, they are always iterating, pivoting, changing, trying new things, not being afraid of conflict…

What does this mean for established companies? They will need to take drastic measures to do the OODA loop faster. What kind of drastic measures? According to the article, these CEO’s must be willing to tell their stakeholders they may have to lose money and cannibalize existing products and services, while scaling up new technologies and methods. Not the same old dog chow most CEO’s having been dishing out.

How Can a CEO Get On Track?

It used to be that you could acquire the start-up that was trying to put you out of business. But in today’s market it takes more than that. Companies that are disrupting the marketplace are growing so quickly, capturing so much market share, they don’t want or need to be acquired. And they can become too valuable to buy or are unwilling to sell. So the questions for you, as a CEO, “Is do you have systems to monitor/measure what employees know, think & feel about what is going on in the business?”

They are often the ones on the front line that really know what is going on and what needs to be done, or at least what isn’t working. “Do you really know what your customers know, think & feel? Or do you have a cordial relationship where the “real deal” is not really discussed?” Honest, conscious conversation is where it all starts. Many people have made careers by learning how to manage-up well. That’s not a bad thing, except when you aren’t telling the CEO the truth about what the troops think, feel and know. But there has to be a cultural environment that always you to be able to safely say the things. That’s not always the case.

And, as a CEO, “Do you take that information that you have gathered from your employees, your customers, all kinds of sources and integrate it into your company?” One of the best ways to stay on top of the game is to monitor social and digital media. If you have a digital / social media command center, where all the top news and information is brought into one central place, you can begin to digest a new picture of the quickly changing landscape very easily. You’ll also want to keep your ear closely attuned to what is happening in the start-up world, regardless of whether it is Silicon Valley or Silicon Beach or Silicon Edge or…

The More Things Change, The More They Stay The Same

To me, all of this sounds like something very familiar to those of us who came from the voice of the customer or quality. Remember Deming, the father of Quality who was pushed out of the American Auto Industry? And then only to be invited to Japan and make their automative industry soar? What was his secret sauce? To listen to their customers and the employees. To make really changes to their products and services based on that feedback!

Start Incubating Innovation

Today, companies must incubate disruptive ideas within their own corporate cultures. And this is not easy, because often it means supporting them as they grow into something truly disruptive. The company might have to absorb their losses. For example, for its first 20 years Amazon made almost no profit. But iterating, pivoting and incubating is not enough. A CEO must maintain the existing business at the same time as they innovate. This is a new and rare skill.

So where best to learn how to think like an OODA Loop CEO? Find a group that help take you through thinking differently, through a design-thinking process where you never know what will come out of it, but it always spurs innovation. You have to cross the chasm, from how you normally do things, to how things have never been done before. That’s a lot of change, so it’s also important to develop those ideas and new innovations in the culture where change and honestly is accepted and appreciated.

@drnatalie

VP, Program Executive, in the Innovation and Transformation Center 
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Want to Know More About Machine Learning and AI?

Wondering whether you should invest in AI and Machine Learning? That’s a question that the most innovative companies are considering. Why consider it? One good reason is because your competitors have already started. If that doesn’t give you some reason to get motivated, I hope you get started before you are put out of business. To make sure that doesn’t happen, there are  a few things to consider to help you start to explore an investment in machine learning.

It’s the Data, Stupid

Of course, as with any business initiative, you’ll want to create value. And this can be done using machine learning systems. But for those systems to provide value, companies will need to begin by evaluating their organization’s data maturity, but more importantly their readiness to accomplish its data-driven goals. Company’s need to start with an audit of their data warehousing, data scientific research capabilities, data governance and data hygiene. In addition, it’s important to look at the sources, uses, volume, and veracity of all your date, meaning your first-, second-, and third-party data.

Garbage in, Garbage Out

Why is making sure your data so clean? Machine learning is basically taking a computer and making it smart enough to learn from the data it’s fed. We are essentially programming machines to learn. The goal is that after a certain point of time, the computer is able to predict further data. How so? Let’s pretend you want to make your computer predict the weather. So to begin, you might feed the computer weather reports of every hour of every over the past year. What you might end up with is– because the temperature (z) depends on day of the year (x) as well as the time of the day (y), more than two-dimensional curve. In fact, weather is random, so the equation generated by the computer won’t just have 3 variables (x, y, z), it may also have higher powers. So depending on the number of factors in a prediction and the randomness of the outcome, the complexity of the curve can increasingly get more complicated.

So back to the data… And I know you know the story about data: garbage in, garbage out. So hopefully, now you see can why good, clean data is so important to prediction. As the computer is taking the data you feed it to make future predictions, those predictions dependent on the data you are feeding it. So you want the very best data possible. And it takes super computers which are capable of handling large volumes of data, as well as the ability to learn fast and to make fast decisions based on the learning it under goes.

AI and ML Are Not The Same

Often times Artificial Intelligence (AI) and Machine Learning (ML) are used interchangeably. But they are actually different. Artificial Intelligence is the broader concept of machines being able to carry out tasks in a way that we would consider “smart.” Machine Learning is the application of AI based on the idea that we should be able to give machines access to data and let them learn for themselves. Artificial Intelligence devices (devices designed to act intelligently), are often classified into one of two groups: 1) applied and 2) general.

Applied AI is far more common. Applied AI is about systems designed to intelligently trade stocks and shares or drive an autonomous vehicle. Generalized AI is may up of systems or devices that, in theory, can handle any task. And are less common. However, this is where some of the most exciting advancements are happening today.

Deep Learning is A New Area of Machine Learning Research

It was introduced with the objective of moving Machine Learning closer to one of its original goals: that of being Artificial Intelligence. So essentially Deep Learning is a subfield of machine learning concerned with the algorithms inspired by the structure and function of the brain called artificial neural networks. Deep learning has worked it’s way into business language via Artificial Intelligence (AI), Big Data and analytics. Deep learning is an approach to AI which shows great promise when it comes to developing the autonomous, self-teaching systems which are revolutionizing many industries.

The Two Big Ideas: It May Be Possible To Teach Computers to Learn and The Internet is a Source of a Ton of Data

Arthur Samuel, in 1959 is credited as the one who came up with the big idea that it might be possible to teach computers to learn for themselves. That would be in contrast to teaching computers everything they need to know about the world and how to carry out tasks. The second big idea was that the Internet, with huge increase in the amount of digital information being generated, stored and could be used for analysis. So the scientists and engineers realized it would be far more efficient to code computers to think like human beings, and then plug them into the internet to give them access to all of the information in the world.

Neural Networks Are Algorithms

Neural networks are a set of algorithms, modeled loosely after the human brain and designed to recognize patterns. The development of neural networks has been key to teaching computers to think and understand the world in the way we do, in addition to the innate advantages they hold over people such as speed, accuracy and lack of bias. So a Neural Network is a computer system that classifies information in the same way a human brain does. It can be taught to recognize, for example, images, and classify them according to elements they contain. It works on a system of probability – which means that based on data it’s fed, it is able to make statements, decisions or predictions with a degree of certainty. The addition of a feedback loop enables “learning” – by sensing or being told whether its decisions are right or wrong and then can modify the approach it takes in the future.

What Can Machine Learning Applications Do?

Machine Learning applications can read text and work out whether the person who wrote it is making a complaint or offering congratulations. They can also listen to a piece of music, decide whether it is likely to make someone happy or sad, and find other pieces of music to match the mood. They can even compose their own music expressing the same themes, or which they know is likely to be appreciated by the admirers of the original piece.

These are all possibilities offered by systems based around ML and neural networks. The idea is that we should be able to communicate and interact with electronic devices and digital information, as naturally as we would with another human being. And another field of AI – Natural Language Processing (NLP) – has become an exciting area of innovation in recent years, and one which is heavily reliant on machine learning. (And yes, my initials just happen to be NLP, but that doesn’t really mean anything… just a happy coincidence…)

Where is Used?

Take Google for instance. Google is using it in its voice and image recognition algorithms. It is also used by Netflix and Amazon to decide what you want to watch or buy next. And it is also being by researchers at MIT to predict the future.  While Machine Learning is often described as a sub-discipline of AI, we might look at Machine Learning as the state-of-the-art of AI. Why? Perhaps because it is showing the greatest promise to provide tools that industry and society can use to drive change.

More on the practical uses of AI and ML in the future. For now, noodle on that!

@drnatalie

VP, Program Executive, Innovation and Transformation Center

 

 

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Innovation & Disruption In Delivery: Could Your Next Amazon Delivery Be By a Drone?

Ever Had a Package Delivered Late, Not at All Or To the Wrong Address?

One of the most irritating issues with ordering online is whether the package gets delivered and to the right address and on time. I know I’ve experienced this a number of times and what’s interesting is that, as customer’s we don’t always think about the delivery service as the issue, but rather it reflects poorly on the company we by the product from. How to fix this customer experience issue? One option is to deliver packages to consumers’ homes using drones. Could this allow companies to bypass the challenges with that last step of the delivery? It might be for delivery to people’s homes. It might not work at apartments, though, because the drone can’t get into the apartment building. Or can it?

What customers may not know is that the last leg of the delivery is the most expensive and inefficient part of parcel delivery. Customers don’t often think about that the product has to go from a store or warehouse, to the shipper’s delivery center and then from there, be deployed to the customer’s address. It is often not the place you bought the product from that is having the issue. It maybe who their delivery service or services are. It could be the individual who works for the delivery service. I know I personally had package delivered to an address that was similar to mine, but not mine. The individual was new to the delivery route and got mixed up. I had to run after the delivery truck, stop them and tell them they delivered to the wrong building. (I had gotten a text my package was delivered, but it was not on my doorstep or at the post office boxes for my building.) And since this happened more than once, I knew what had happened.

What’s the Solution To Better Customer Experience Delivery?

E-commerce companies, like Amazon, are using drones to speed up the this last part of the delivery process, while cutting costs. The result? Improving the customer experience, customer satisfaction and loyalty. And what’s interesting is even legacy retailers could take advantage of a similar process to grow online sales.

So What’s the Hold Up?

While there are many obstacles to overcome for instance, drone regulations, the development of autonomous flight and traffic control systems for drones, as well as consumer acceptance, there are companies actively trying to figure this all out. For instance, Amazon is working on drone delivery, depending on when and where they have the regulatory support needed to safely delivery packages. They want to use drones to deliver packages to customers around the world in 30 minutes or less. In fact, they have Prime Air development centers in the United States, the United Kingdom, Austria, France and Israel.

Amazon Prime @drnatalie

Photo Source: Amazon

They believe the airspace is safest when small drones are separated from most manned aircraft traffic, and where airspace access is determined by capabilities. To learn more, you can look at Amazon’s airspace proposals here: Best-Served Model for Small Unmanned Aircraft Systems and Revising the Airspace Model for the Safe Integration of Small Unmanned Aircraft Systems.

Disruption to Delivery Logistic Firms

As e-commerce providers like Amazon look for solutions within their own company, many logistics providers are experimenting with drone delivery. These firms also seek to cut costs as well as ward off competition, whether it’s from startups, technology companies or e-commerce companies. In fact, FedEx is betting on automation to Fend off contenders like Uber and Amazon. The shipping giant is investing in autonomous trucks and is interested in delivery robots, drones and an Alexa app. And while there are attempts to get this right, those of us in the innovation space know that #failfast – iterating and pivoting is the key. In my book, it’s ok to fail. You can’t learn what you don’t know, you don’t know unless you try. Trying means you learn something each time. Though the concept of failfast is very popular today, if we look back at Edison, it took him 9,999 times to get the filament for the lightbulb to work on the 10,000th time. What if he gave up? We’d all be in the dark!

How Is Amazon’s Prime Air Trial Drone Deliver Program Progressing?

Amazon have started with a private customer trial, to gather data to continue improve the safety and reliability of their systems and operations. As they gather data, this will bring them closer to realizing this how to use this innovation for all their customers. Does weather affect the delivery? Currently, Amazon is permitted to operate during daylight hours when there are low winds and good visibility. However, they are not using it when it rains, snows or in icy conditions. They feel they need to gather more data to improve the safety and reliability of their systems and operations to expand the offering. They are working with regulators and policymakers in various countries in order to make Prime Air a reality for customers around the world.

Video Source: Amazon

Where Can you Find more Information On the Disruption and Innovation Drone Delivery Can Provide?

In a new report, BI Intelligence examines the benefits drone delivery can provide as an e-commerce fulfillment method. In the report, they look at the different approaches companies are taking to experiment with the new technology and processes involved in this new delivery process. In addition, they look at the key players working in the drone delivery space. And have researched the challenges drone delivery faces in reaching mainstream adoption.

Will Your Industry Be Disrupted? Every Industry Should Be Thinking It Will Be Disrupted!

As I was giving a talk on disruption and innovation, I had many questions from what would be considered very standard legacy firms. What they need to be careful of is being aware of the fact that somewhere, in someone’s basement or garage, someone is probably working on a project that will disruption their industry. It’s customary to do the ostrich: stick you head in the sand. But doing so will only make you a dinosaur, (extinct) if you are not careful.

Disruption and innovation are all around us. Just look at what happened to the taxi industry. Not only did Lyft and Uber transform how customers’ order, receive and pay for rides, but they disrupted an age old industry that had not changed for years. And take GM for instance. They make cars. But they decided to look at cars as a service and invest $500M in Lyft to be part of the cars-as-a-service industry.

Disrupt Yourself or Die

Instead of being one of those industries or companies that waits until an upstart disrupts their revenue model and takes marketshare, why not start innovating within your own company. Too many companies are complacent or don’t have the skills to think outside the box. If you don’t, it may want to seek out a firm that can you help you think through this new and confusing new frontier of design-thinking, innovation and disrupting yourself — as a company and as a person. No one wants to be the company that had the leg up on IBM and caused it’s own demise: i.e, nobody wants their story to go down like Digital Equipment Corporation: DEC.

“Digital Equipment Corporation achieved sales of over $14 billion, reached the Fortune 50, and was second only to IBM as a computer manufacturer. Though responsible for the invention of speech recognition, the minicomputer, and local area networking, DEC ultimately failed as a business and was sold to Compaq Corporation in 1998. The  fascinating modern Greek tragedy in book form by Ed Schein, a high-level consultant to DEC for 40 years, shows how DEC’s unique corporate culture contributed both to its early successes and later to an organizational rigidity that caused its ultimate downfall.” Don’t do a DEC.

@drnatalie

Natalie Petouhoff

VP, Program Executive, Innovation and Transformation Center | Salesforce.com

 

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Vending Machine Are Not Just for Chips and Soda: An Innovation for Displaying Luxury Cars?

If you thought vending machines were just for fast food, think again. They are now for fast cars. From a Singapore “vending machine” you can order Bentleys, Ferraris and Lamborghini’s.

Who thought of this innovation? None other than the used car seller Autobahn Motors. They wanted to make efficient use of space in land-scarce Singapore and stand out from competitors. So in December, they opened a 15-story showroom, with 60 slots for vehicles, calling it the “world’s largest luxury car vending machine.”

How does it work? Well if you are in the market for a super fancy car, you can stand on the ground floor and with a touchscreen choose the car of your dreams. With an advanced system that manages vehicle retrieval, the car arrives within one to two minutes.

Gary Hong, general manager at Autobahn Motors, said,  “We needed to meet our requirement of storing a lot of cars. At the same time, we wanted to be creative and innovative,” he told Reuters. He has been approached by developers interested in using the company’s Automotive Inventory Management System for parking services.

But they aren’t the only ones. In fact, U.S. company Carvana uses vending machine-like towers to sell used cars. March marks the month it opened an eight-floor structure holding up to 30 cars. The Carvana vending machine, is a coin-operated. The proprietary Car Vending Machine offers a unique pick-up experience for customers who purchase a car online through the company.

How does it work? Carvana customers search for and then buy their car online at Carvana.com using — you guessed it – a mobile phone or desktop computer. Not only can customers buy the car, but they can also choose the vehicle financing through Carvana and even have the option to trade-in a car.

Once the purchase is complete, customers can choose to have their car delivered directly to their door or they can elect to pick it up at one of Carvana’s Car Vending Machines. If they choose to come to the vending machine, at the time of pick-up, the customer receives an oversized Carvana coin to drop into the custom coin slot at the at the car Vending Machine. The purchased car is automatically retrieved from the tower and moved through the machine until it reaches a delivery bay. There, the customer gets to drive away!

Where will the next source of innovation come from? You never know these days!

@drnatalie

Read the original article on Reuters. Copyright 2017.

 

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Digital Transformation Projects Have an 84% Chance of Failure; Are You Ready to Failure or Succeed?

Would You Invest If You Knew the Investment Had a High Likelihood of Failure?

If I were to tell you that I had an investment opportunity for you and the probability of you making money was 16% or less, how likely would you be to invest in it? But if I told you that the investment opportunity had a 90% chance of returning your investment, might you be more likely to want to invest?

What’s interesting is that digital transformation is all around us. We can’t help but be impacted in our person lives, from smart phones, smart TVs, apps (think taxi’s vs. Lyft), Siri, Alexa and Google Home. In business, it’s clear that customers want to engage with business in digital and mobile channels. Businesses need to make the transition to be competitive and survive. Yet according to Consultancy.uk* and Bruce Rogers** who wrote Profitable Brilliance: How Professional Service Firms Become Thought Leaders, 84% of businesses undergoing digital transformation are likely to fail. 

The More Things Change, The More They Stay The Same

Having been at this game for a while, the statistics reminded me of stats from nearly 20 years ago when the topic was CRM and ERP. Though they are not exactly the same, they have many of the same elements. Digital transformation, innovation and CRM and ERP implementations are IT implementation of people, process and technology. What they have in common is the use of technology to make scalable processes that were once manual. The advantages among many, were higher productivity (cost savings) but also providing better customer-facing experiences (revenue generating.) Going back through my old papers about CRM and ERP failure rates,*** I saw many of the same type of stats predicting similar failure rates for digital transformation projects are being predicted today**** (and by many prominent groups, including IDC, Gartner Group and Forrester Research.)

Things that make you go hmmmm. The more things change, the more they stay the same.

When Will Organizational Change Management and Culture Change Be Taken Seriously?

The stats show since the late 1990’s – early 2000’s until now, when Culture Change (CC), Organizational Change Management (OCM) and Behavioral Change (BC) is missing from a project, there are issues, yet it’s still not “fashionable.” Perhaps the lack of fashionability is from an old paradigm stemming from the command and control type leadership that doesn’t deem people as an important aspect of the business transformation, whether its CRM, ERP or Digital Transformation. Perhaps it stems from leadership that doesn’t know there’s a whole science and set of CC and OCM methodologies that go along with IT implementations. Perhaps they have never been shown the value of that OCM and CC can bring, so they still don’t think it’s important enough to invest in. Perhaps it’s a matter of showing people that it works and makes a difference!

The Time for Change is Now

The 4th industrial revolution challenges most of our existing mental models. What this means is that cultural change is essential to enable and execute successfully, any business / organizational / digital transformation. The key is having a plan, as well as, having developed tools and process for culture change and organizational change management which includes, but is not limited to having a:

  1. Communication plan and regular communication cadence
  2. Leadership and stakeholder involvement and engagement
  3. Training and skill development for the future state of the business and
  4. Organizational readiness and adoption on a continuing basis of the ongoing changes.

And of course, underneath each of these very simplistic groupings is a deep set of assumptions, tools, methodology and business-driven outcomes. So digital transformation isn’t uniquely about technology. It is about having the right digital strategy to ultimately transform a business to achieve higher objectives. This type of digital transformation must be built along with the human capital component, including skill sets, as well as, a cultural adoption of changing the way we do business. So what it boils down to is evolving behaviors within the organization, both from a leadership point of view as well as middle level managers to all employees.

Being Stuck in the OCM Adoption Chasm Will Cause Digital Transformation Failure

What is seems like, referencing one of my favorite people and author’s is Geoffrey Moore. It’s seems that perhaps we are, after twenty or more years of having OCM and CC at our finger tips, we are stuck in the adoption chasm. What we are headed for is the digital transformation iceberg of failure. We know what the iceberg did to the Titanic. We don’t want to be on a sinking ship. So what does an organization need to do? More on all of this in a future post.

@drnatalie

Natalie Petouhoff

VP, Program Executive, ITC | Salesforce.com

References

* Consultancy.uk. “Two Thirds of Digital Transformation Projects Fail” Consultancy.UK. N.p., 28 Sept. 2015. Web. 28 July 2016

**Rogers, Bruce. “Why 84% Of Companies Fail At Digital Transformation.” Forbes. Forbes Magazine, 7 Jan. 2016. Web

*** http://sloanreview.mit.edu/article/the-end-of-corporate-culture-as-we-know-it/

*** http://www.cio.com/article/2440386/supply-chain-management/supply-chain—hershey-s-bittersweet-lesson.html

*** http://customerthink.com/failed_crm_implementation_finally_costs_hp_465_million_in_damages/

*** http://www.destinationcrm.com/Articles/Columns-Departments/The-Tipping-Point/The-Scientific-Reason-for-CRM-Failure-Part-1-42510.aspx

*** http://www.destinationcrm.com/Articles/Columns-Departments/The-Tipping-Point/The-Scientific-Reason-for-CRM-Failure-Part-2-42655.asp

*** http://media.techtarget.com/searchCRM/downloads/CRMUnpluggedch2.pdf

*** http://www.zdnet.com/article/crm-failure-rates-2001-2009/

*** https://hbr.org/2002/02/avoid-the-four-perils-of-crm

*** http://www.infoworld.com/article/2648303/applications/waste-management-sues-sap-over-erp-implementation.html

*** http://www.computerworld.com/article/2517917/enterprise-applications/sap–waste-management-settle-lawsuit.html

*** https://www.google.com/#q=hershey+crm+failure&*

*** http://www.crmsearch.com/crm-failures.php

*** http://www.destinationcrm.com/Articles/Columns-Departments/Insight/A-Succession-of-Failures-70822.aspx

**** https://www.idc.com/getdoc.jsp?containerId=US40550115 ; http://www.gartner.com/newsroom/id/3337617 ; https://www.cmo.com.au/article/545992/will_your_business_digital_predator_prey_/

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Is Organizational Change Management Just the “Fluffy Stuff” or Is There Real Business Value?

Is OCM and CC Kumbaya?

When I first lead organizational change management (OCM) and culture change (CC), it was at previous high tech company; a company made up of mainly engineers. When the topic was first announced as part of our integrated product developed process (a.k.a. teaming) it was labelled very quickly as “apple pie and motherhood.” Many thought we were going to sing Kumbaya or I was going to bring cake and cookies to meetings. What I learned was framing what the results could be and by providing individuals, teams and organizations, with tangible results, I found being outcomes-driven was the missing key. How so?

Outcomes-based Driven Values

When I framed OCM and CC in terms of outcomes and business value, I asked questions like, “Would you like it if everyone showed up to your meetings? On time? With the action items completed? With a proactive attitude vs “not invented here or we don’t do that – that way here” attitude…  Get a high rate of return on projects- projects on time, within budget and scope, high customer satisfaction…? Of course the answer was a resounding “YES.” The employees were craving answers to these issues that plagued the organization. And no one knew how to fix these issues. They just persisted. People stopped taking deadlines seriously. They expected project scope to creep. Budget overruns were somewhat typical.

WIIFM?

When I was able to explain the value of the outcomes of OCM and CC to them personally and their teams- the WIIFM (What’s in It For Me), they became extremely interested as the cultured suffered from too many meetings, people always in meetings so they never had time to do their action items; a passive-aggressive culture- so instead of coming to the meeting (without the action items completed and saying they didn’t have time and figuring out how to change something so they did have time) they just wouldn’t show up… And in that company – one team’s action items directly impacted another. For instance, if team 1 didn’t finish their action items teams 2, 3, 4… couldn’t do theirs… and the project fell behind, out of scope, over budget… It was a horrible domino affect that one one really knew how to fix. Giving orders that projects needs to be on-time, within budget and on scope didn’t really lead to change. It just lead to frustration because there were reasons why those things were happening, but giving an order that they needed to be done didn’t fix the root cause. So nothing changed.

What I learned about Leading Change

What I learned was when I presented OCM and CC in terms of outcomes – employees and leaders were very interested. I learned when I first presented OCM and CC without the business outcomes, it resulted in #fail. Then, I pivoted and iterated to an outcomes driven aproached, related to WIIFM and it resulted in #success… Net-net? Choosing a few key behaviors’ that help people work better together in a way that supports desired organizational outcomes, gets people on board…

What 20 years of leading change has taught me is that it’s all about framing CC and OCM in a way that people can relate to. Unfortunately a lot of CC or OCM got a bad rap as the fluffy stuff. But I have spent a great deal of my career over the last 20 years writing ROI (return on investment) models for the “fluffy stuff.” And I can tell you, it’s not fluffy… it impacts the bottomline…  

OCM and CC Tools and Methodology Are Key to Successfully Transitioning From The “Fluffy Stuff” To Concrete Business Results

And of course having a methodology and tools that help teams and people make those changes… takes it out of the “fluffy stuff” and into the business realm. OCM and CC is so much more, but people don’t know, what they don’t know… so it’s key to have a concrete methodology so it’s taken seriously and it can add business value to teams and our customers. More on that in future posts.

@drnatalie

Natalie Petouhoff

VP, Program Executive, ITC | Salesforce.com

 

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Edible Robots: Researchers from Switzerland Work to Deliver Medicines in the Intestinal Tract

We know that robots play a key role in medicine by helping to conduct surgery by being able to conduct more precise and predictable movements than a surgeon as well as in pacemakers that can help regulate a person’s heartbeat. The healthcare industry spent $4.5 billion in 2016, according to IDC. But that’s only the beginning. In fact, the amount spent on robots is expected to grow as new types of robots are used in hospitals and clinics, globally.

So what is new in robots? Edible robots that can deliver medicine or conduct other medical procedures. In particular, we may find them crawling around inside our intestinal tract say researchers from Intelligent Systems Laboratory at Ecole Polytechnique Fédérale de Lausanne in Switzerland, which was led by graduate student Jun Shintake.

How do they work? These tiny edible and digestible robotics are made of gelatin. Actuators are what is responsible for their movement. However, they are not made like the typical metal robots powered by a motor. Instead, what causes these edible gelatin actuators to move is air or chemicals. The research talks about combining these actuators with other advancements in edible electronics. What might that look like? Perhaps the might be batteries that can safely pass through a digestive tract, or chips and cameras that can be ingested. These could make for a fully edible robot says Recode.

École hôtelière de Lausanne in Switzerland poised to make different kinds of food substances that may be ingested and roboticized. Are there any ingestible electronics on the market? Yes, and they include pills with ingestible sensors on them that can track patient’s compliance with taking medication. Often what affects someone’s ability to recover from a situation is their ability to comply with what is prescribed. And as humans, we sometimes forget to take very things that will help us. In addition, there are some robots that contain a camera that is small enough to be swallowed and record activity in a person’s digestive tract to help diagnosis issues that scopes can’t detect, like bleeding.

So as our ability to detect what’s going on in the body gets more sophisticated, so do the robots designed to help us heal. What will be next? It’s difficult to tell, but always interesting to see what scientists will discover!

@DrNatalie Petouhoff

VP, Program Executive | Innovation and Transformation Center (ITC), Salesforce.com

 
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Facebook’s Artificial Intelligence Has The Ability to Search Photos by Content

The term artificial intelligence was coined 60 year ago. But now its starting to deliver. Lumos’s computer vision platform was initially used to improve the experience for visually impaired members of the Facebook community. Lumos is now powering image content search for all users. What does this means to you? You can now search for images on Facebook with key words that describe the contents of a photo, rather than being limited by tags and captions.

How does this work? It starts with the huge task of computational training. For the object recognition used in Facebook’s image search, the artificial intelligence (AI) system started with a small set of 130,000 public photos shared on Facebook. Using the annotated photos the system could learn which pixel patterns correspond to particular subjects. It then went on to use the tens of millions of photos on Facebook. So what this means is that the caption-reading technology trained a deep neural network though public photos shared on Facebook. The model essentially matches search descriptors to features pulled from photos with some degree of probability. You can now search for photos based on Facebook AI’s assessment of their content, not just based on how humans happened to describe the photos with text when they posted them.

How could this be used? Say you were searching on a dress you really liked in a video. Using the search it could be related back to something on Marketplace or even connect you directly with an ad-partner to improve customer experiences while keeping revenue growth afloat. So it seems it can help both customers, customer experience and companies selling things as well as ad partners.

What else is new? Facebook released the text-to-speech tool last April for visually impaired users so they could use the tools to understand the contents of photos. Then, the system could tell you that a photo involved a stage and lights, but it wasn’t very good at relating actions to objects. But now the Facebook team has improved that painstakingly labeling 130,000 photos pulled from the platform. Facebook trained a computer vision model to identify 12 actions happening in the photos. So for instance, instead of just hearing it was “a stage,” the blind person would hear “people playing instruments” or “people dancing on a stage” or “people walking” or “people riding horses.” This provides contextually relevancy that was before not possible.

You could imagine one day being able to upload a photo of your morning bagel and this technology could identify the nutritional value of that bagel because we were able to detect, segment, and identify what was in the picture.

So it seems the race is on for services not just for image recognition, but speech recognition, machine-driven translation, natural language understanding, and more. What’s your favorite AI vendor?

@Drnatalie, VP, Program Executive, Salesforce ITC

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The Smart Home Race: Who Will Win?

Here are three main smart home contenders:

  • Apple’s HomeKit
  • Amazon’s Echo, Tap and Dot and
  • Google’s Home.

The main issues? Consumer confusion, which adoption follows. There is, unfortunately, technological fragmentation within the connected home ecosystem. Currently, there are many networks, standards, and devices being used to connect the smart home, creating interoperability problems (the ability of a system or a product to work with other systems or products without special effort on the part of the customer) and this makes it confusing for the consumer to set up and control multiple devices.

Until interoperability is solved, consumers will have difficulty choosing smart home devices and systems. So here’s how different companies are approaching the market place. Some make it really easy for the customer, while others require a more technical approach.

Apple’s HomeKit

Tim Cook demonstrated how he uses Apple’s HomeKit in his personal life to give potential or current users some ideas on how they can apply it. During Cook’s quarterly earnings conference call he talked about how he has integrated HomeKit products, and the iOS 10 Home app, into his home routine. There are about 100 HomeKit-compatible products available.

Ways to use Apple’s homeKit? When you wake up and say good morning to Siri, your house lights can be programmed to come on and the coffee machine can be started! Though there don’t seem to be any coffee makers on the market with integrated HomeKit support, it’s likely he may be using  smart plug. There are plenty of HomeKit smart plug options on the market— AppleInsider has reviewed both the Elgato Eve Energy and iHome iPS5 SmartPlug. There are two options For HomeKit lighting: bulbs and switches. Philips Hue is a popular option bulb option. It  comes in a starter pack with three bulbs and a HomeKit-enabled hub for ~$199.99.

As far as switches go, the Lutron Caseta Wireless in-wall dimmer kit is HomeKit compatible. Like Philips Hue, it needs a hub to be connected to a home router for HomeKit support— the hub is included in the ~$190 bundle. Smart plugs are only useful with appliances that automatically turn on and operate when they are connected to an outlet. If the connected device requires any sort of manual input, HomeKit and Siri integration don’t work. Cook also mentioned that when he relaxes in the evening, he asks Siri to adjust the lighting and turn on the fireplace. And upon leaving the house, Cooks says by simply tapping on his iPhone, the lights turn off, the thermostat turns down and the doors lock.

Using HomeKit to turn down the thermostat, a common device is the Ecobee3 second-generation model, ~$250. When it comes to door locks, you could consider the $215 Schlage Sense and $230 Kwikset Premis. These both have numeric keypad entry. The $230 August Smart Lock integrates with many existing door locks and makes for simpler installation. When Cook talks about the simple tap” on his iPhone, in “Apple language” he is creating a “Scene” with the Home app in iOS 10.

What is a “scene?” An example is when Cook says his “Hey Siri, good morning” greeting, it turns on the lights and a smart plug to brew coffee. How does that work? You’d open the Home app in iOS 10, tap the plus button in the top right, and simply choose “Add Scene.” Then you’d create a custom scene name and choose which accessories are powered on or off. For more on this, check out the AppleInsider.

Screen Shot 2017-02-04 at 10.18.48 AM Source: AppleInsider

Amazon’s Echo, Tap and Dot and Amazon Prime Services

Amazon’s Echo offers tiered-speaker in three heights – large, medium and small. Using Alexa, Echo is your personal, cloud-based assistant. Alexa has finely tuned automatic speech recognition (ASR) and natural language understanding (NLU) engines that recognize and respond to voice requests to add intelligent voice control to any connected product that has a microphone and speaker. In addition to Echo, Amazon offers Amazon Tap and Amazon Dot (which has been updated.)

Screen Shot 2017-02-04 at 10.21.00 AM                                     Echo                      Tap                      Dot

Source: Pocket-link

Echo

Why is Amazon considered by some to be at the helm of the smart home arena? Not only is Amazon cleverly locking customers into its wider Prime ecosystem, but Alexa adds additional value. It’s easy to set-up, on average about a minute or so. You just plug Echo it into a wall outlet using the included power adapter, wait for the spinning light ring on top to go from blue to orange and then Alexa will greet you. Amazon Echo is great if you just want to have a stationary speaker that doubles as an always-on personal assistant. It provides room-filling audio that’s good for casual listening. When it’s connected to Wi-Fi, you can ask it all sorts of questions and control your devices.

Echo works with devices such as lights, switches, thermostats, and more from WeMo, Philips Hue, SmartThings, Insteon, Nest, ecobee, and Wink. Here’s where you can learn about how to set-up your smart home devices. Some products that work directly with Alexa and other smart home ecosystems require a compatible hub. If you are still confused, you can book an appointment with an Alexa expert. It’s free and you get:

  • Personalized smart home solution recommendations from a trained Amazon employee 
  • Home WiFi assessment to identify and troubleshoot any issues 
  • In-home demo of popular smart home products 
  • Appointment typically lasts 45 minutes 
  • But installation, troubleshooting, and setup of devices not included.

Tap

Amazon Tap provides a similar sound experience, but uses a charging cradle in order to be portable (there’s no cord.) Because it’s not always plugged into power, always-on Alexa isn’t available though. You have to push a mic button to access the service. Tap is great if you’re going to the beach or are always on the go.

Dot

Amazon Dot is basically the top section of Amazon Echo. Dot supports always-on Alexa, connects to the cloud to stream music, controls your smart home devices, and does all the same stuff as Echo. The main difference between Dot and Echo is that the full-size speaker is gone. Instead, customers would hook Dot up to their own audio setup (via out jack or Bluetooth), so they can use Alexa with their existing speakers. That tiny speaker doesn’t output much audio; it’s only for Alexa voice feedback (which requires Wi-Fi.)

Amazon Prime and Alexa

Amazon’s Echo products are designed to be an access point to the Amazon Prime network. The monetization strategy is not really on the hardware of the Echo devices. Instead it’s really focusing on connecting users directly to the Prime network without having to go through an iPhone or Google search engine. And Alexa is the brain behind Echo. It’s smart because the more you use Echo, the more it adapts to your speech patterns, vocabulary, and personal preferences. And because Echo is always connected, updates are delivered automatically.

What can Alexa do? Alexa has skills. While I’ve given a list, you will find over 4,000 here. Alexa can help you find things on yelp, give you movie showtimes, order a pizza from Domino’s, request a song from Spotify or Pandora, request a ride from Lyft, open your garage with Garageio, provide Samsung SmartThings support, play Jeopardy, update your Google Calendar, read you Audible audiobooks, convert text-to-speech for Kindle eBooks…

Alexa gives you a guide on great things to do in some of your favorite cities like New York, London, Boston, act as a travel guide, be your vacation rental virtual concierge, give you the next arrival for the route and stop you specify in a city like San Francisco, tells you door buster hours and sale hours for Black Friday for major retailers like Walmart, Target, Best Buy, Old Navy, Staples, Bed Bath and Beyond, Costco, Gamestop, Home Depot, Lowe’s…

Alexa gives you interesting relevant health and nutrition information, ask beer snob to look up a specific beer, get information like a price, rating, location, or a short description from a Wine Sommelier, quickly review your task lists, find out what is due, and add tasks, give you an inspiration quote or provide a mediation…

Alexa also gives you based on the weather of the location you request it will recommend what to wear so that you don’t feel too cold or too hot, switch on the lamp before getting out of bed, turn on the fan or space heater while reading in your favorite chair, or dim the lights from the couch to watch a movie and order the right products that work with Alexa.

With the free Alexa App on Fire OS, Android, iOS, and desktop browsers, you can easily set-up and manage your Echo. With the app, you can view shopping and to-do lists while on the go as well as control your timers and set custom tones for your alarms…

Google’s Home

Google Home is a voice-activated speaker powered by the Google Assistant. Ask it questions. Tell it to do things. It’s your own Google, always ready to help. Just start with, “Ok Google.”

The Google Home is centered on targeting users with ads. Google is one of the largest companies in the world to rely on ads as its primary stream of revenue. They garnered $79.4 billion from its AdSense division on its earnings, with the overwhelming majority of the Alphabet parent’s total revenue. While Alphabet bought the device makers Nest and Dropcam, Google Home doesn’t have the built-in user base that Apple has with iPhone.

What does Google Home do? A simple voice request triggers Google Home to play music, podcasts or radio from services like Google Play Music, Spotify, YouTube Music, Pandora and TuneIn. Thanks to Google’s rich history in search, Google Home is ready for your questions. Get real-time answers including the latest on weather, traffic, finance, sports, local businesses – you can enjoy entertainment, manage tasks, plan your day, control your home, get information like nutrition information for ingredients or food or ask about current individual stock prices or current points of an index, like the NASDAQ or ask for scores, live updates, or next game date, location and time for your favorite sports teams.

Their compatible smart home partners include nest, Phillips, IFTTT, WEMO, Honeywell and SmartThings. Streaming devices include: Google Chromecast, VIZIO, TOSHIBA, PHILLIPS, Sony, Bang and Olufsen, BO & Play, Grundig, polk, RUAMFELD. You can watch videos and photos on youtube, NETFLIX, and Google Photos.

If you want to learn more about how to use Google Home, click here. Essentially there are three main steps:

  1. Plug power cable into your Google Home device
  2. Plug the cable into a wall socket
  3. Download and run the Google Home app on a phone or tablet.

The newly-designed Google Home app is your one-stop destination to discover all of Google Home’s content and features. DayDream is Google’s VR headset and controller that lets you explore new worlds, kick back in your personal VR cinema, and play games that put you at the center of action. When your phone’s screen becomes your big screen, you can get fully immersed in your favorite shows, movies, VR videos…

It will be interesting to see who wins in the smart home race! What’s your choice? And why?

@DrNatalie Petouhoff, VP, Program Executive, Salesforce ITC

 

 

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