The Industrial Internet, Accelerator in a Box and Retail Disruption on #DisrupTV

Each week, Vala Afshar and R “Ray” Wang host a web series DisrupTV. It’s a 30 minute deep dive into the world of digital transformation featuring the people and organizations that are leading that change.

This week’s episode featured GE’s Chief Digital Officer, Ganesh Bell, Constellation Research Principal Analyst, Guy Courtin and myself.

Setting a cracking pace, GE have become the poster child for the world of digital transformation, coining the term “industrial internet”, establishing startups in Silicon Valley and setting a vision to be a top 10 software company by 2020. In the episode, Ganesh talks about the challenges of transformation – of moving from an industrial company to a digital company and what it takes. It’s well worth watching the replay to learn more about the tangible impact of digital transformation that GE is making not just within their business but well beyond it.

Joining Ray and Vala, about 25 minutes in, I shared some insight into the world of enterprise innovation in Australia:

Guy Courtin joined around 45 minutes in and brought amazing insight into the changing world of retail. From showrooming to the internet of things, he covered a vast terrain of disruption and opportunity, suggesting that bricks and mortar stores still have plenty of advantages over their digital only counterparts, and explaining that to be truly transformative, we need to stop thinking about “e” commerce and connect the dots around the customer’s commercial experience.

While the show ran for just over an hour, it’s jam packed with insight and energy. And DisrupTV is fast becoming an authoritative, must watch series for all those who are serious about the business of disruption and transformation in business. Check out recordings of past episodes here. And watch this week’s episode replay from Blab below.

Creating New Business Patterns for Social Impact

I have always believed that a sense of purpose would drive change, no matter whether that change was behavioural, economic or cultural. And as such, my work in marketing has always been driven by an interest in psychology, behaviour and action. The reality is, is that I am curiously interested in people and what makes them tick – not in the things that they tell you when prompted, but in the millions of tiny actions that create our personalities. For example, I love the way that vegans wear leather, or doctors smoke cigarettes. I adore the inconsistencies that defeat algorithms and confound logic.

But I also love the way that these apparent inconsistencies can also create opportunities.

Over the last couple of years, businesses have started to pay closer attention to millennials – that generation born between 1982 and 2004. And while the span is open to debate, it is clear that this generation have a substantially different mindset from those that came before. I notice this in the work that I do with youth entrepreneurship organisation, Vibewire – where I am regularly confronted by behaviours, actions and expectations that, on the surface, appear completely alien. And I notice it in my work with corporations and clients, and in the research I do for various public speaking events. But as this generation begins to reach into management and executive ranks of government and business, it is something that we are all having to come to grips with.

Deloitte’s Millennial Survey is a recent example of the research which serves to reinforce what we have long suspected – that a sense of values and purpose is at the core of the millennial mindset. Thus far we have seen this play out in the consumer landscape, with a significant reduction in leading indicators of personal consumption – consider:

  • The fall in the number of driving licenses issued and the downstream impact on car sales
  • The rise in preference for public transport and the increasing pressure on inner city housing
  • The interest in entrepreneurship opportunities and skills and the downstream disinterest in professional careers and career paths.

The Deloitte report indicated that while millennials are “pro-business”, they are also particularly interested in business’ potential to “do good”:

Millennials continue to express positive views of business, and their opinions regarding businesses’ motivations and ethics showed stark improvement in this survey. However, much skepticism remains, driven by the majority-held belief that businesses have no ambition beyond profit. Almost nine in 10 (87 percent) believe that “the success of a business should be measured in terms of more than just its financial performance.”

 

deloitte-millennial1

However, while there is an alignment of values between business and millennials, there is a substantial gap in the alignment of purpose. The report concludes: “Millennials would prioritize the sense of purpose around people rather than growth or profit maximization”.

deloitte-millennial2

This, of course, suggests unsettling economic, cultural and social futures while the mis-match is sorted out. But as in most things, the most negative impacts will be felt by those businesses that respond too late or fail to plan strategically.

How to plan ahead for generational change

Whether your business has felt the winds of generational change or not, make no mistake, it is coming. From 2015, the Baby Boomer generations began retiring from the global workforce, taking their years of experience and expertise and substantial spending power with them. This trend will accelerate in the coming years. And as those experienced business leaders trade suits and ties for no ties and sun-filled beaches, enterprises from downtown Chicago to dusky Beijing will be restocked with ambitious, values focused millennials seeking to make their mark on the world. And this shift will force substantial change to what has been “business as usual”, with values and purpose taking centre stage.

Anecdotally, we are already seeing this play out. Financial services organisations are softening their positioning and message to the market. Utilities and resources companies are speaking of values, and professional services firms proclaim purpose and social impact. It’s out with conspicuous consumption and in with the sharing economy.

But this is just the beginning. Real change must be embedded deep in the hearts and souls of these organisations. It must be lived in the brand experience. And the “old ways” – the “business as usual” approaches must be re-made for this changing age.

Innovating for social impact

Often when we talk of innovation, we focus on something new or novel that is introduced to the public. It could be technology or an experience. It could combine the two. But we will begin to find that our efforts at innovation trip and stumble as they reach the market if we fail to take into account the changing nature of our buyer’s values and purpose. It won’t be good enough to put “lipstick on a pig” and serve it up on a bed of kale. We will need to begin the challenging task of creating shared value outcomes that don’t just serve our markets, stakeholders and management. We will need to address social impact too.

Over the last year or so, I have been working to create powerful business innovation frameworks that help entrepreneurs bring their products and services to market faster. My very first of these was an adaptation of the Lean Canvas used by startups for the purposes of social impact. I called it the Shared Value Canvas. Recently I have turned my attention to workshop and facilitation formats that use the same lean and agile methods employed by the world’s most innovative companies, tweaked to incorporate a social impact or social innovation outcome.

5-day-sprint-spread

In the coming days, I expect to release a comprehensive handbook that guides facilitators and teams through a Five Day Social Sprint. Designed for not-for-profits and for-purpose organisations, it’s a deep dive into the tools and techniques that rapidly move from idea to product within a week’s worth of effort. It has been inspired by the Google Ventures, five day sprint process – but revised and refocused for social impact.

And while I hope it finds favour with charities and not-for-profit organisations around the world, I also hope it inspires more traditional businesses to find tangible ways to bring purpose and values to life within their organisations, one innovation at a time.

Marketing Skills of the Future, Now

I have dozens of conversations with marketers every week. And in almost every conversation, the topic turns to skills. Skills shortages. Employee capabilities. And technology. The rapidly changing marketing technology landscape shifts each quarter with new features, functions, platforms and data coming into play. Meanwhile, universities are pumping out graduates whose capabilities are already out of date.

It is becoming clear that we need marketing skills for the future. But we need them now.

I recently discussed these skill gaps with MediaScope’s Denise Shrivell, AOL’s Yasmin Sanders and RadiumOne’s Adam Furness. Each week Denise presents a 30 minute live video chat on the topics impacting Australia’s media and advertising industry, and this episode focusing on skill shortages was a cracker. On a positive note, we are seeing forward momentum. But are we seeing the gap closing? Watch a replay of the episode below.

Addressing skill gaps by improving your innovation fitness

Over the last 12 months I have been working with a range of clients on their digital and marketing strategies. As part of this work, we map out not just the strategic landscape, but the skills needed to deliver. Sometimes this means:

  • In-house teams need training
  • Finding the right agency to fill the gap
  • Every now and then, creating something entirely new – which is when the project gets really exciting.

One of the programs we have developed to help organisations to continue to move forward in this environment is called Innovation Fitness. The Innovation Fitness program, with its bootcamp, ongoing mentoring and support and target skills audit process is not just about closing the gap, but about delivering changes in the ways that you work.

After all, the future is not determined by technology but by our reactions to it. The questions we all need to ask ourselves is “How clear is our future skills strategy? And are we even on the right path?”.

Talking Social and Digital Trends on the Echo Junction Podcast

GavinHeatonx300 Podcasts are one of my newly discovered joys. A well curated list of subscriptions basically means that you can remain up-to-date with your fields of interest independently of the mainstream media. This is particularly useful for topics that are too niche for the media or too controversial – which is why my personal subscription list includes podcasts on the topics of digital and social media, Australian history, and the history of writing and language (often including large amounts of swearing).

Podcasts also mean that you have a greater role in programming your own media content, so if you don’t like what you hear, you can unsubscribe and find something you like more.

One of my regular casts is Adam Fraser’s Echo Junction. With dozens of podcasts recorded this year, he has been seeking out and presenting some of the best thinkers and doers in the online world for the last year or so. He meticulously researches, prepares questions and challenges his guests to connect the dots between the enterprise and digital worlds. Some of the best episodes include:

Back in April 2015, I joined Adam to talk social business and the enterprise landscape, and last week we got together again to think about the future – 2016 – and what it might hold for the world of social and digital. It wasn’t an interview. It was a discussion. You can listen in here (and argue with me on Twitter).

IT’s Big Secret – Platforming: Bringing IT and Marketing Together

The big IT companies have a secret. And it’s a secret that can radically transform your business. For the last decade or so, technology has been converging – with different technology stacks coming into alignment, sharing interfaces, connecting data and improving the process of software development and deployment. As a result, we have seen huge improvements in the capability of software to impact business. Just think about:

  • The rise and role of data in business decision making
  • The importance and focus on dashboards and data visualisation
  • The growth of mobile and location based information
  • The abundance of “internet of things” devices and sensors
  • The near ubiquitous adoption of smartphones.

Behind the scenes, technology companies have been “platforming” – turning their business processes and models into digital systems. They do this across four key business dimensions:

  • Social: The Social dimension has the potential to deliver powerful, personal yet scalable CONNECTION. It offers a single conversational channel, builds trust and offers a way to accelerate a resolution or conversion process
  • Mobile: The Mobile dimension delivers LOCATION. With a connected device in your pocket (close to your beating heart), a mobile phone is the convergence point where the digital and the “real” worlds collide
  • Analytics: The power of big data is not in crunching everything known about a customer. The real value is in delivering AWARENESS to a network. This effectively means creating USER context from the social, mobile and business data signals available
  • Cloud: And the cloud provides the mechanism for SERVICE. To remain relevant to customers, brands must re-acquaint themselves with the value of service. And Cloud provides the mechanism to do so.

But the challenge for marketers is that these dimensions are largely unconnected to marketing. They rightly belong to the company’s technology teams. Right?

Combining marketing and IT capabilities

The greatest opportunity for business is to combine the expertise of marketing and IT. Marketers usually view their customers through the lens of media – combining paid, owned and earned media to reach and engage them. We have shifted, however, beyond this broadcast approach – and this is increasingly being enabled by the SMAC platforms.

To more effectively bridge the marketing and IT fields, we need new ways of thinking, collaborating and conceptualising what it is that we do. We need a shared language, shared measurements and cross-line-of-business visibility into key performance indicators, pressures, deadlines and processes. And this means digital transformation.

Is it possible? It has to be. For only through this kind of alignment will we be able to deeply impact our customer’s brand experience.

I spoke in more detail on this subject recently. See my slides and the presentation here.

 

DH - From Media to Experience (3)

Disruption is the Future of Work: The All Consuming Employee

It’s not hard to see the future of work. In fact, it’s right there in front of our faces. It is happening under our noses. At the desks, in the hallways and foyers of our organisations. It is even happening in the homes of our staff, executives and customers.  And it is changing even what we consider “work” to be.

A quick search on LinkedIn revealed almost 40,00 Australians with “freelance” in their title, and almost 100,000 Australians working in a self-employed or contractor capacity. For these people, the idea of a “9-to-5” job is anathema – either through choice (they prefer to work beyond the walls of a single employer) or through circumstances (full time working conditions cannot be accommodated for a variety of reasons, from health to age, experience to opportunity).

Furthermore, statistics on telework and the business use of information technology from the ABS (from 2012), revealed that more that a third of micro businesses use the internet to allow staff to work from home, while this more than doubled for larger businesses, with 75% providing facilities for staff to work from home via technology.

And when we add to this the number of individuals who take on side projects in their spare time for cash via sites like oDesk or Freelancer or even those willing to work for a fiverr, it becomes clear that “work” is quite a different beast than it was in the Twentieth Century.

The challenge of course, is that the future of work involves a disruption of work itself. And this pushes staff, executives and HR departments into new territory. Or does it?

Katie Chatfield and Jon Paul Potts from Jack Morton have provided a quick refresher on why CEOs should care about employee engagement. Take a read and then take a look around you. How’s the future from your point of view?

Marketing Provocations from We Are Social, Singapore

The WeAreSocial team in Singapore consistently produce thought provoking research and showcase the powerhouse that is Asia. Their regular reports (available on Slideshare) aggregate data from across the web and make connections between the trends and the reality on the ground. And for those wanting to understand the shifts in marketing in Asia, they provide a great series of primers. (Of course, the best thing to do is to GO.)

The latest presentation by Simon Kemp, shifts this up a level, offering eight provocations on the future of marketing. No matter whether you are  client-side or work for an agency, these provocations offer a powerful challenge to the status quo of the way that we carry on the BUSINESS of MARKETING.

  1. Social equity drives brand value. Think participation rather than broadcast.
  2. Communities have more value than platforms. Think outside-in rather than inside-out.
  3. All marketing must add value – Think why rather than how.
  4. On the go is the way to go – Think mobile only rather than mobile first
  5. From big idea to leitmotivs – Think traction rather than blast
  6. From selective hearing to active listening – Think signal rather than noise
  7. Experiences are the new products – Think benefits rather than features
  8. CSR evolves into civic engagement – Think doing good as the price of doing well

Now, if these indeed are provocations, they are aimed precisely at the way that we marketers do our work, conceptualise it and execute on it. It becomes personal very quickly. So the question we must ask ourselves is – “which of these most impact me, my work and my customers – and what will I do about it”. I would love to know your thoughts!

Bridging the Social Chasm

When IBM’s Center for Business Value released its 2011 report into the relationship between social media, marketing and brands, it revealed a “perception gap”. On the one hand, marketers had an understanding that their connected consumers “wanted” or even “expected” a certain style of interaction through social media. And on the other hand, there was the hard reality of what those customers actually wanted. The gap between the two was the distance between two competing realities.

But is anyone listening?

In reality, we are not really dealing with a gap. It could be better described as a “mismatch” – after all, a “gap” would indicate some alignment. But the problem for brands is that the distance between the two sets of expectations is growing. We are now dealing with a widening chasm in the world of customer experience.

CustomerExperienceGap

Two years after IBM’s original report, even a casual investigation of most branded social media would indicate that the chasm is becoming more pronounced as brands continue to shift their marketing spend and resources into digital and social media (Gartner’s US Digital Marketing Spending Report indicates that 25% of the marketing budget is now devoted to digital).

But when it comes to business effectiveness, more budget is not necessarily always the answer (though there would be few marketers who would refuse an increase, I am sure). To bridge the social chasm, business must begin to re-think, re-action and re-calibrate their organisational approach to social:

  • Re-think: Start with what you know. Create a new social baseline and audit all your activity for assessment. Real time analytics and dashboards such as those from Anametrix can provide the kinds of decision-ready data that is essential to informed decision-making
  • Re-calibrate: If you have started a social business program in the last two years, it’s now worthwhile assessing its impact. Have you achieved the original milestones? Has the program had the kind of impact that you expected? Take a look at R “Ray” Wang’s 50 use cases that help demystify social business and think through the business processes and workflows that are business critical. Are your social programs impacting business results? If not, it may be time to recalibrate.
  • Re-action: This is no time for social business fatigue. No one ever said that change was easy. And equally, no business achieved competitive advantage by being complacent. It’s time to re-action the business programs that are core to your strategy.

What’s your experience?

Interestingly, this recent workplace research study by Microsoft revealed that there is also a chasm between business management and the workforce. Teams not only expect or demand more collaboration – about 17% of people are actively ignoring IT policy and installing social tools independently. This is delivering some value to the business – with 60 percent of participants in the Microsoft study indicating that their use of social tools has increased productivity – but this would be a far cry from the billions of locked-in value that McKinsey Global Institute’s 2012 study revealed.

If businesses can’t work to unlock the value in the low hanging opportunities within their own business, how long will customers have to wait?

It seems like there are whole industries on the brink of disruption. Social may not be the driving force, but it could be the trigger.

Microsoft Social Tools in the Workplace Research Study by Mark Fidelman

SuccessConnect – Where Talent and Social Collide at the SuccessFactors Conference

Did the Job You’re In Exist When You Were Studying?

Got a new job Stéfan via CompfightPredicting the future is incredibly difficult. Ask any psychic. Or marketer. We don’t need research to tell us that the world is changing, or that the future will be different from the past. The challenge is magnified not only by the amount of change that we are seeing in almost every industry, but by the rate at which those changes are taking place.

Futurist, Tim Longhurst says to predict five years into the future you need to look back ten.

Is it any wonder that younger generations entering the workforce are finding it hard to plot their future careers?

As it turns out, I don’t think this problem has changed that much. Marketing was my fourth or fifth career, and I fell into it by accident. But even within the broad field of marketing, I have rarely held a role with a fixed job description. There have always been large grey areas in which I operated most effectively – whether as an incubator of new business units, a strategist, marketing director.

The thing is – I don’t think my career path with its twists and turns is all that different than others. But tell me. Did the job you’re in exist when you were studying?


Got a new job Stéfan via Compfight