I had the good fortune of moderating a panel on the state of digital business at the Chief Digital Officer Global Forum in Singapore yesterday morning. The event showcased a who’s who of digital business leadership in the region, including my panelists Veena Ramesh of Johnson & Johnson, Jerry Blanton of Citi, and Veronique Meffert of Great Eastern Life.
Organizational issues are the greatest hurdle. There was not a single dissenting voice on the fact that organizational challenges represent the biggest impediment to digital business progress. The greatest organizational challenges are functional silos, business unit resistance, a lack of clear guidance from the CEO, rigid backward-looking mindsets, and a shortage of the skills needed to drive change. One approach — shared by Rahul Welde of Unilever — is to drive “digital experimentation funds” and “foundries” to drive co-creation innovation.
Media command centers are becoming critical marketing assets. Both representatives from Unilever and Philips spoke of the critical role that media command centers now play in their marketing campaigns. In the case of Philips, I was surprised to learn that its social media command center in Singapore employs 200 people — and that it is planning for expansion!
By all accounts, we’re approaching a new order of integration between technology and medicine. Real-time medical diagnostic data obtained from our mobile phones will soon be integrated directly into our electronic medical records where clinicians can use the data to make more-accurate (and potentially dynamic) treatment plans. Hospital staff can communicate and react to changing patient conditions faster and with less disruption to the patient experience than ever before, thanks to increasingly integrated mobile messaging systems and other mobile applications (for both the patients and clinical staff).
Applying big data analytics to PHI promises to improve patient outcomes and lead to more efficient —and less costly — patient care. It’s hard not to feel a level of excitement as this convergence of healthcare, mobile technology, and big data progresses at an accelerated rate. However, with all of this new patient data being collected by insurance payers, medical providers, and third-party services, healthcare employee endpoints have become an especially vulnerable source of data loss.
■Healthcare records are five times as likely to be lost due to device theft/loss.¹ If you’re a CISO at a healthcare organization, endpoint data security must be a top priority in order to close this faucet of sensitive data. Consequences will increasingly be more than just a mere slap on the wrist with fines, as consumers fight back.
The frenzy over Apple’s formal launch into the digital wallet space has reached a fever pitch. There is no shortage of speculation around the widely anticipated “iWallet” – and for good reason. Apple has a slew of compelling assets to leverage for its wallet, like an existing consumer base with roughly 800M cards on file, Passbook, iTouch, iBeacon, and more. It also has a unique track-record of entering existing categories with elegantly designed solutions that redefine, then dominate -at least for a time. However, we can’t ignore the fact that the mobile wallet graveyard is littered with elegantly designed solutions that failed to take off. Case in point: Square Wallet..
When it comes to digital wallets “…build it and they will come…” simply does not hold true. The challenges of Google Wallet and Visa’s V.me are two more familiar examples. To be clear - I do expect that over time Apple’s mobile wallet will have greater success than Square Wallet, Google Wallet, or V.me. But an elegant user experience won’t be enough to do it. Merchants will determine whether Apple’s mobile wallet lives or dies.
Digital Wallets Require Scale, And Merchants Control The Levers At Checkout
Today Salesforce.com offered a formal update on its Salesforce Wear offering (which I wrote about at its release here). Salesforce Wear is a set of developer tools and reference applications that allows enterprises to create applications for an array of wearable devices and link them to Salesforce1, a cloud based platform that connects customers with apps and devices.
Salesforce’s entry into the wearables space has been both bold and well-timed. Salesforce Wear constitutes a first mover in the wearables platform space; while Android Wear offers a platform, it only reaches Android Wear based devices – unlike Salesforce Wear, which operates across a wide array of wearable devices. While it’s early to market, it’s not too early: Enterprises in a wide array of verticals are leveraging wearables worn by employees or by customers to redesign their processes and customer experiences, as I have written.
What lies ahead for the retail store? Yesterday, Forrester published a report that predicts the answers to key questions about the future of the retail store: Which digital technologies currently on the periphery of the store environment will make the leap to the sales floor? How will retailers know which technologies have potential and which will remain gimmicks?
In the report, we outline the utility and predicted chronology of several technologies, including:
Proximity technologies. Retailers will know when and where an associate is needed, by whom, and for what purpose.
Wearable technologies. Associates will access the relevant data to provide optimum customer service with minimum intrusion.
Facial scanning technologies. Retailers will know their in-store customers’ histories, preferences, intentions, and needs and will cater the store experience to them.
Smart countertops. Retailers will embrace consumers’ propensity to do product research while shopping in-store and enhance the utility and experience at the same time.
3D printing. Retailers will make the inventory they need on-site or once it’s been purchased.
For more on Forrester’s take on the usefulness of these and other technologies, and to see our predictions of when we’ll see them enter the retail store, see the report (client access required).
Which technologies do you think will realistically make it into retail stores of the future?
Following Alibaba’s announcement that it will list on the New York Stock Exchange, global eBusiness professionals are paying closer attention to the Chinese Internet giant, wondering what impact it will have on their business. For those who need to get up to speed on the company, here is a preview of Forrester’s upcoming report on Alibaba, which summarizes its development history, revenue streams, business expansion, and the impact it will have on digital services business value chain:
Alibaba draws its revenue streams from the ecosystem around its eCommerce platform. According to Alibaba Group’s F-1 filling, the main businesses for the Alibaba Group include B2B (168.com and alibaba.com), C2C (Taobao.com), B2C (Tmall.com, Juhuasuan.com and AliExpress.com), and digital services. Alibaba's revised filing from August 2014 indicates that it handled more than RMB 1.8 trillion (about $296 billion) of transactions for 279 million active users across its three Chinese online marketplaces in 2013. Over the past 15 years, Alibaba has built an ecosystem of buyers, sellers, third-party service providers, and strategic alliance partners around its platform. By leveraging buyer and seller data from this ecosystem, Alibaba has created a data analytics product that gives a complete view of a customer at any phase of their purchase journey, resulting in a very successful marketing and commerce business that generates significant revenues.
The traditional RFP-driven vendor selection process is heavyweight and often has undesirable outcomes:
The RFP process it time- and resource-consuming. Forrester estimates that CRM vendor selection projects take six to 12 months to complete. The effort involved to compile detailed requirements often produces something resembling a programming specification rather than a concise statement of business process needs.
Outcomes are often undesirable. The more onerous the RFP process, the more likely it is that some of the more viable candidate vendors will opt out after determining sales considerations costs and reading the tea leaves of the competitive situation. When this occurs, mediocre or unqualified vendors may be the only ones left to choose from.
Failure to differentiate among mature products or identify innovators. RFPs only include requirements that buyers can envision now and generally look quite similar to capabilities that vendors can deliver in current releases rather than more visionary features that don't exist in many products today.
Vendors gain the upper hand. Vendors often have much more experience with RFPs than the buyer. A cagey vendor will look to circumvent the formal process by influencing executive decision-makers informally or disrupting the process if it is not going its way. Slick sales presentations and RFP responses often gloss over product weaknesses.
In a recent report on next-generation services, I give several examples of how tech services firms are reinventing their operating models and value propositions to provide a new path to digital transformation to their clients. Interestingly, many such initiatives are coming either from very large service providers like Accenture or from small specialists like VMob, Bluefin Solutions, or Point of Origin. Small service providers’ next-gen service value proposition is starting to catch the interest of large clients too. A few weeks ago, VMob announced a major deal with McDonald’s in Japan wherein the company will leverage the VMob solution for its 3,200 restaurants in Japan.
The next-generation services report highlights the key tenets of these new digital transformation offerings. In this customer-controlled, digital world, successful tech services companies will bridge the gap between technology and business outcomes for their clients. In other words, it is not just about implementing a new technology solution anymore. It is about helping clients harvest the power of digital technologies and achieve specific business outcomes like growing revenues, reducing operating costs, or mitigating risks. This is where next-generation service providers like VMob, Bluefin, and Point of Origin get it. As leaders in the new services world, their approach is fundamentally different from the traditional tech service providers, as they:
There are a few well-engineered products out of Stuttgart, Germany — Mercedes-Benz, an oft-visited tourist stop, is one. Another good Stuttgart product: SoftPro’s E-signature solution. Its strengths lie in its use of biometrics for image verification, particularly the SignAlyze product, a signature verification tool used extensively by German banks. SoftPro has a strong global presence outside of the US and solid banking accounts, all delivered with the kind of engineering foundation you would expect. The acquisition will help Kofax a lot, as it is virtually unknown in the US, with marketing and strategy behind the market leaders, and it has been slow to enter the trending SaaS market. In addition, SoftPro’s shortfalls in selected areas compared to the broader field, such as workflow and analytics, can be quickly plugged with the Kofax Total Agility BPM platform.
All in all, the SoftPro acquisition enhances Kofax’s competitive position in the smart process application category. E-signature also adds to Kofax’s portfolio for capture, process automation, analytics, and mobility to address key requirements for the rapidly growing need to automate and digitize document-centric applications. Kofax talks a lot about the first mile, but now can have deeper conversations about that last mile — where something needs to be signed.
Earlier this year, The New Yorker published an article entitled "Twilight of the Brands," which posited that due to the abundance of information now available to consumers, brands are irrelevant. For all the die-hard brand marketers out there — myself included — it felt like a blow to the chest. But the analysis is flawed and the conclusion is erroneous because the abundance of information now available to consumers makes brands more — not less — relevant. Brands have always been a shortcut to decision-making, and in a world where consumers are increasingly overwhelmed with information, that role becomes even more important. But what has changed is the art and science of brand building. In the age of the customer, we see that:
Brand communications have shifted from controlled to chaotic. In the pre-digital world, marketers had the luxury of being able to control most of their customers’ interactions with their brands — through ads, packaging, POS, and carefully solicited PR editorial. But in today’s post-digital era, most of consumers’ information about a brand originates from sources outside of the brand’s control, such as user-generated content, ratings and reviews, or social chatter.