Lufthansa Takes You on a Virtual Journey

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One of the key marketing challenges that we face in the customer journey is moving from awareness to trial. That is, we want potential customers to “try out” our products or services.

This can be particularly challenging when your product or service has a substantial price tag attached.

Think of travel.

There are a whole series of steps that we go through when we are on a travel journey:

  • Ideas and inspiration: We seek out amazing stories, pictures and reviews of places, people and experiences so that we can plan our own adventures
  • Planning and projection: We start to actively curate our activities, destinations and journeys, connecting the dots and figuring out our itineraries and (gasp, horror) budget. In this stage we are not just planning our activities – but actively imagining what it will be like to BE there
  • Lock and load: When we’ve checked, double and triple checked, confirmed our budget and dates, now we wade neck deep into the process of locking dates to a loaded credit card. Yes, it’s commitment time and the pressure is on (so many websites, so many things that can go wrong)
  • See ya, see ya, wouldn’t want to be ya: Wave goodbye to your friends and family and take the leap into the unknown
  • Wish you were here: Well, we say this to be kind, but if the planning and projection phase was well done, you’ll be taking hundreds of selfies all around the world and using them to induce raging envy across your social graph
  • Reflection and longing: Planes aren’t the only things that land with a BUMP. So too does our travel ego. Coming back to “reality” can be a confronting experience. To cope, we return to our #RunningWithTheBulls selfies to remind ourselves just what the travel rush was all about and how we really are #travelheroes.

In amongst each of these steps, there are hardly any that an airline can directly impact. They can inspire us with their media activities, advertising and profile. And they may even help us to plan – albeit in a small way. A good airline will make locking and loading a breeze and but it’s really when you are in the plane that they can make a huge impact.

But experiencing airline travel is expensive, right? And price alone is a barrier.

This virtual travel experience from Lufthansa by 3Spin is a very interesting innovation that I expect will see plenty of others follow.

Lufthansa have touched on many aspects of the travel journey – turning a largely imaginative process into something that is more tangible. More experiential. In fact, it’s not just the destination that is inspirational, it’s the experience of the virtual reality itself. And with a clever mix of digital, analog and old fashioned customer service, they’ve created something far more than just a 360 degree virtual experience. They have created an EVENT – a point in time and space that will create memories. Stories. And hopefully for Lufthansa, bookings.

It makes me think there may be something to this VR lark after all.

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

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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.

The Price of Marketing is Innovation

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Marketing teams everywhere are experiencing a profound disruption. It’s a change in thinking, planning, analytics and platforms unlike anything that we have experienced previously. And while the changes happening to us as marketers are unsettling, far more troubling are the changes happening around us as marketers, business people and consumers. We are living on the pinhead of a transition that is sweeping all before us and swallowing the past as it goes.

Living in a platform age has changed the dynamics of our lives. What was personal has become professional and what was “work” has become, well, less clear. Less defined. After all, we can now “work” from home, from a coworking space or shared office. Even a cafe around the corner from your home can serve you VPN access with a steaming hot cappuccino. We are an always-on, digitally connected, wifi enabled workforce that can transform from knowledge worker to connected consumer faster than Snapchat can forget that selfie you posted to your network of faux friends and friendly foes.

And the platforms have come a long way, taking advantage of four transformative technologies – social, mobile, analytics and cloud. The SMAC model. For years, technology companies have known about the power of platforms – using SMAC to create competitive advantage and commercialising the value across networks. Startups have known this too – though often without clear and incisive strategy. They’re too busy moving quickly across the platforms to harness their potential for scale.

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But this is changing. All businesses are changing.

These days, any business can become a technology business. What was once my consulting business – Disruptor’s Handbook – has become a technology business. We are deeply technology enabled – from CRM to lead and opportunity nurturing, communications management, planning, collaboration and execution right through to business analytics and financial management. The intellectual property that we have created has been downloaded thousands of times and is being put to use in 25 different countries including the UK, China, South Africa, South Korea, Japan, India and Mongolia.

This can only happen because we have embraced the SMAC model. We have apps in the cloud, integrated using pieces of string, chewing gum and a raft of zapier zaps, API calls and pre-made plugins. It means we rely on a dozen services rather than a single suite, but it holds together and works almost flawlessly. Until it doesn’t. But it provides a scale that would otherwise be difficult to achieve without a significant technology budget.

And if we can do it, you can too.

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Swallowing the past

Just when you start to feel comfortable with your technology choices, the rubber bands and sticky-tape that you use to hold it all together, the worst possible thing happens. Well not exactly the worst, but modern marketing’s closest equivalent. A new technology is released. Or an upgrade or a patch. And this new thing is so bright and shiny, you feel like Cory Hart in a film clip straight from the heart of the 1980s. You can’t help but to download it. Sign up. Trial. Share it with friends and colleagues.

And this one new thing makes you question all that has gone before it. Imagine Facebook before it bought Instagram. Or Google before it bought Urchin. These companies are moving so fast, transforming their user experience and brand promise so quickly that we hardly remember what life was like before the change occurred. These platforms are swallowing the past moment by venture-funded moment.

But where do we start? In the marketing technology field alone, Scott Brinker estimates that we are dealing with over 2000 technology choices across almost 50 category areas. In each of those categories we face a dazzling array of choices, capabilities and technologies. So much so, that we often elect to do nothing. As marketers we are suffering from one of our own invented marketing conditions – decision paralysis. We refuse to take a step forward out of a fear of being wrong-footed.

Yes, the future is bright and it is long, yet we are living a constant present.

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Marketing technology – it’s not a footstep but a journey

Traditionally, marketers have always had their eye on the customer. But in the rush to transform their approaches, update their skills and stay ahead of the competition (all while still delivering ROI), many of us have been blinded by the technology light. The problem is that this is not a light. It’s a train and it’s heading in our direction. Marketing technology has put us on a set of rails that are almost impossible to escape from.

But there is a way.

Rather than following in the digital footprints laid out in front of us, we must consciously choose an alternative – the customer journey.

When we start with our customers and their journey it changes the game for us. Rather than generating campaigns, leads and opportunities, we are seeking to understand our customers’ needs, expectations and path to purchase. It’s less about how we sell and more about how they buy. And when we understand this, we can then select the technologies that help us deliver that experience.

How do we do this?

Clearly it requires new thinking and new skills.

Agile marketing and the new world order

In many agencies, agile marketing has been the order of the day for sometime. Building on the old “traffic management” model popularised in publishing houses, digital agencies have been adopting agile methods and approaches to deliver their marketing solutions for years. But in this world of constant change – with a need to swim upstream to where the new sources of business value lie, client side marketers are having to adapt their own ways of working. Out are the old metrics and in are the new. Same with skills. Creative. And technology. Many of our marketing platforms have already been superseded – yesterday’s cutting edge marketing cloud is already burning like acid rain.

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Our increasingly complex world is expecting increasingly complex solutions. We can’t just work in broadcast or print. It needs to be omni-channel. Mobile. We need the best of social and the power of analytics. We need predictive modelling and on-demand forecasting. There are so many new acronyms that we need a new urban dictionary just to keep up. I have been exploring these topics on the Firebrand Talent blog – seeking to match the changing landscape a framework for marketing renewal.

In fact, I am finding my work in innovation is meeting my work in marketing. They complement and reinforce each other. And in the best instances they catalyse and accelerate each other’s effectiveness.

These days the modern marketer has no choice but to create a new world order. Gone are the certainty of ratings and public statistics. Gone are the guaranteed budgets and elastic ROI figures. In are hard numbers, data analytics and real time bidding. It’s like working with an armful of tactics while building strategy on the fly. We can do it, but we do need to ask – is it best for the business and best for the customer? Is it brand-wise?

The time has come to shift not only our thinking but our practice. It’s time that we recognise that customers are not going to buy something just because we interrupted their continuously connected life with the right offer in the right place at the right time. We need accept that we need to build new products for new conditions, not just create new campaigns to spruce up a tired offering. It’s time we stopped talking about “agile” and started “being” agile. We need a marketing system for the disruption that we are all living.

But what is it going to cost? I hear you say.

It’s not a cost. Modern marketing is an investment. And innovation is the price of getting a seat at the customer’s table.

Creating New Business Patterns for Social Impact

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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.”

 

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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”.

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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.

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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.

Opportunities for Agencies: Innovation Can Be Learned

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One of the most interesting and useful podcasts that I listen to is Drew McLellan’s Build a Better Agency podcast. Each week, Drew serves up fascinating and tangible tips, tricks and proven approaches to help agency owners grow their business. It’s a great combination of tactics and strategy, capability building and new ideas.

A couple of months ago, I had the opportunity to talk to Drew about the ways that agency owners can re-think their businesses and client relationships. With so many of the traditional agency offerings like design, SEO and even copywriting now commoditised and available through crowd-aggregation platforms, many agencies are being challenged to innovate or die. It seems that digital disruption is reaching into even the most creative of disciplines.

Or is it.

I have always seen the great strengths of the agency model working where a trusted relationship is able to be nurtured over a number of years. In these instances, agencies are able to take on more and more strategic work, shifting from a transactional supplier role into something more substantial. A partner. Or advisor. It is in these roles where agency owners have the greatest of opportunities – to recast the relationship again, bringing their teams’ creative problem solving talents into the value equation.

One of the ways of doing this is through the use of the tools and techniques popularised by high tech startups, like the lean canvas. This “business model on a page” approach quickly moves a client discussion to a higher level. It frames a new style of conversation that agency owners can lead.

And the great thing is, you can try it on your own agency first. In the podcast I share some tips for getting started. And remember – innovation isn’t something you are born with. It can be learned.

Beyond Innovation Bingo: Doing Business with Government in the Digital Age

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We have been living in the 21st Century for almost 15 years, and at last it seems, that governments at all levels in Australia have finally got the carrier pigeon. With Primer Minister, Malcolm Turnbull’s very public recalibration of the business conversation towards “innovation”, there has been a remarkable level of energy and dynamism pumped into the the business world. From Wyatt Roy’s PolicyHack to the Telstra Digital Summit, and from the SydStart startup conference to the opening of the Australian Digital Transformation Office, it feels like we are constantly playing innovation bingo.

Will all this talk result in action? And will that action result in anything like lasting change? More importantly, will the benefits of this innovation – the digital transformation programs – actually deliver value and opportunity for anyone other than the big end of town?

On Thursday, 5 November 2015, InnovationAus.com is hosting an Open Opportunity Forum to address these questions. This breakfast event at the offices of Swaab Attorneys, aims to “provide the highest level briefing of digital engagement – to give [mid-tier technology companies] a practical guide to meeting public sector demand.”

Speakers* confirmed include:

  • The Hon Karen Andrews MP, Assistant Minister for Science, Australian Government
  • Professor Roy Green, Dean Business School, University of Technology Sydney (UTS)
  • Martin Hoffman, Secretary, NSW Department of Finance, Services and Innovation
  • Adrian Turner, CEO, Data61
  • Patricia Kelly, Director General, IP Australia
  • Audrey Lobo-Pulo, Data Scientist, Australian Taxation Office (ATO)
  • Latika Bourke, Press Gallery Political Reporter, Sydney Morning Herald (Event MC)

In addition, Wyatt Roy MP, Assistant Minister for Innovation will kick off the breakfast with a live cross from Israel. Rounding out the event, I will share some practical tips on what businesses can do today to make a difference tomorrow. It promises to be informative and perfectly timed to help us all make sense of the newly emerging innovation landscape.

Hope to see you there!

Improve Your Innovation Fitness: Make Yourself Redundant

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“Waves are not measured in feet and inches, they are measured in increments of fear.”
Buzzy Trent

When we talk about technology – and when we talk about change – we often talk about “waves”. Like surfers talk. Except it’s nowhere near as interesting or compelling. Except when we add a tinge of fear to it.

When I first started working in publishing, I realised that I was already redundant. Or was on the way to being redundant. I led the way in implementing online coding in a world full of typesetters, and I started using desktop publishing when it seemed like blasphemy. The change was coming and I was doing all I could to ride the wave was there before me.

Later, at IBM, I learned about process re-engineering. And “restructuring”. And “outsourcing”. Everywhere I looked, I could see disruption, dislocation and relocation. There were people losing their jobs, careers being swept out from under them. It was a time of tremendous uncertainty.

The thing is, it is no different now than it was then. In many ways, we now live our lives in a constant state of disruption. Gone is the fabled “job for life”. Gone is the bond between employer and employee. And gone is the social contract that saw us all working towards a shared future where a “fair go” was on the table for anyone who stepped up. In its place is uncertainty, change and anxiety.

But disruption is not just about fear. It is also about opportunity.

One of the better lessons from my time at IBM was the need to treat a company like a living organism. Every year or two, there would be a restructure. While this was used as a way to reduce costs or shift them to another country, it was also amazingly invigorating. It challenged us to forge new networks in new parts of the business. It forced new and often unexpected ways of working. And it did so when all we wanted was to stay in our comfort zones.

Now, “restructuring” is not always the most pleasant of experiences. And it is emotionally bruising to find yourself out of work suddenly.

Disrupt yourself first

If you take your job seriously – and almost everyone I have ever met does – then the challenge is to make yourself redundant. The opportunity is to disruption yourself, your career and your industry before it happens from the outside in.

This is partly what we are doing with the Disruptor’s Handbook. Despite the name, it is not a “book”. It is a strategy and innovation firm. Our mission is to bring the innovation practices and methods used by startups to the enterprise. And yes, we have handbooks. We make them freely available on our website so that you can apply these practices to your own business. We also have thought leadership eBooks designed to help you make the case for innovation in your business. We also have a series of techniques and approaches that have not been published but are used in our client work. These are shared with clients so that they learn to do what we do – so they know what we know and grow in confidence and capability. We are effectively disrupting ourselves as we grow.

Challenging yourself

I believe that you must challenge yourself and your industry. Can you do better? Can you reinvent your business?

In challenging yourself this way, it keeps you thinking about the long game. It keeps you focused on the health of your skills and networks, your capabilities and your ability to deliver. And it keeps you focused on your customers and their needs, serving them as they shift and change.

And in a time of uncertainty, making yourself redundant puts you in the driver’s seat of your career. You can choose the timing of your next step and its direction. You can prepare yourself for the changes that are coming. It’s Darwinian. Survival of the fittest.

And this … “innovation fitness” means that you are giving yourself the best next chance possible. Don’t just see the next wave coming, ride it, baby. Ride it.

Minimum Viable Policy – the Pitches from Australia’s First #PolicyHack

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On 17 October 2015, Wyatt Roy, the assistant minister for innovation co-hosted Australia’s first policy hackathon with startup accelerator Blue Chilli. It was a great opportunity to get up close and personal with the machinery of government, and hopefully use a little disruptive thinking to bring about changes in policy for the “innovation industry”.

Working with the “corporate innovation” policy challenge, I helped facilitate a team led by champions, Michelle Narracott and Justin Strharsky. Also on the team, tackling this challenge were policy advisors, representatives from industry, entrepreneurs and startups. There was serious expertise on hand from the Department of Industry and Science, Treasury, the fields of intellectual property, international trade and the mining, healthcare and pharmaceutical sectors.

In the world of startups, there is a great deal of focus initially on an MVP – the minimum viable product. The idea is that as a startup we create the best possible product with a minimal feature set in order to test market viability. But with a “policy hack” the focus is not on a product but a policy. As such, the challenge for the teams was to develop a “minimum viable policy” – delivering a policy tweak or shift with the potential for a big impact on the “innovation industry”. This was a significant challenge given that:

  • The teams self-formed on the day
  • The participants had no prior experience working with each other
  • Time was limited to about 5 hours
  • Problems were broadly articulated.

That almost all teams positioned strong proposals for “policy hacks” is testament to not only the team champions, facilitators and mentors – but also the disciplined, lean methodologies used across the day.

You can read more about the experience here – and also the views from participants and observers:

And now, thanks again to Blue Chilli, you can watch the pitches in the video below. Where do we go from here? The machinery of government and policy is turning. The question is, how fast, and with a focus on what kind of outcome.

60 Seconds to a Startup Future

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Got a problem worth solving? A solution to that challenge? A market and a team to tackle it?

Then it’s time to step into the spotlight at the Muru-D 60 second pitch competition.

What is involved?

Muru-D and Seven West Media are providing you with the opportunity to pitch your startup to Annie Parker, Clive Dickens and Alan Stuart with the winner receiving a fast track ticket to the interview stage of the muru-D accelerator program.

You can RSVP here.

Get a head start

If you want to give yourself an unfair advantage – set aside some time to get clarity around your business, messaging and pitch. Seriously. One of the greatest mistakes many startups and founders make is to rely on the sizzle of the product, believing it will sell itself. Focus not on the Product-Market fit, but on the Market-Product fit. To help you, download the Disruptor’s Handbooks:

This is just a start – remember you only have 60 seconds. You’ve got to work really hard to make your pitch simple enough to wow the judges in 60 seconds. Rock it hard.

Thrive in an Age of Disruption

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Disruption is the new normal. Everywhere we look we find traditional business models under threat from emerging players, technology creating new opportunities for fast-moving businesses and the creaking bones of industrial age enterprises labouring to stay current, fresh or even just relevant. The darlings of our blue chip stock markets have given way to tighter, more technologically aggressive firms who wield tech not for COMPETITIVE advantage but to create UNFAIR advantages. Facebook and Google are the obvious examples, but there are more. Many more.

Many of these massively scaled companies have locked their valuations away from the markets – creating a vibrant behind-closed-doors market where Venture Capital firms tease out $1 billion valuations. Just take a look at the Wall Street Journal’s Billion Dollar Startup Club to get a sense of the scale in operation. Uber, with a current valuation of over $50 billion, leads the pack and now boasts a valuation way in excess of General Motors.

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But while Uber, is on the surface, a business about transportation – and cars in particular – it is far from being a car company as we have known them. It is, in fact, a technology company. A software company. And a data company. It is disruption paradigms at every turn.

Even on a more micro level, disruption is taking place in our suburbs and in our streets. The NBN – when it arrives at it eventually will – will sweep non-digital businesses away in a tide of data. And those local institutions like post offices and newsagencies that are the hubs of our suburban malls, will be the first to go (if they have not disappeared already).

BUT

Disruption is not destruction.

It is possible to not only thrive in an age of disruption but to also prosper. And this is what I will be discussing at Newcastle’s DiG Festival on 12-13 October. In fact, the whole two days of the conference are devoted to the theme.

So if you’re wondering what disruption has in store for your career, business or enterprise, you might find this is the best investment you have made in years. See you there!