Opportunities in broken systems

Uber shows how opportunities arise when systems are broken

“Taxi drivers are good people, they are just treated badly”, Uber founder Travis Kalanick told Salesforce CEO Marc Benioff at Dreamforce last week.

Kalanick flagged how in most cities around the world the taxi industry is broken. Nowhere is that more true than in Australia and a piece I wrote for Business Spectator about the disruption to the nation’s taxi industry illustrates that well.

The success of Uber in disrupting those markets – although it should be noted the company is far from becoming profitable – shows the real opportunities lie where existing markets are broken or distorted.

If you’re benefiting from a broken market then this is a risk to your business. For outsiders, it’s an opportunity.

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Marc Benioff’s five key business questions

There are five key questions every business leader has to answer for their venture to be successful says Salesforce founder Marc Benioff

Probably the best regular session of the annual Dreamforce conference is the final session where Salesforce founders Marc Benioff and Parker Harris answer questions from the attendees.

As with any open microphone session, some of the questions are silly but many highlight frustrations Salesforce’s customers have and some give the opportunity for an insight into Parker and Benioff’s thoughts away from the scripted glitz of the main keynotes.

One questioner asked Benioff and Parker what their advice would be to someone in their position of 16 years ago with a new business.

Forget the tech

“Don’t think about the tools or the technology,” said Harris. “Thing about the problems you can solve. Stay focused and work hard and build a great company.”

While Parker also emphasised a great team is another important element, Benioff flagged an element of luck in building a successful business, “we got the timing right.”

Ultimately though it came down to making the jump from a comfortable, if frustrating, corporate job to a risky startup.

“I remember I was working in a big company for a long time, very unhappy.” Benioff recalled and noted the decision to strike out on your own is very much a personal decision, that can only be done when you are convinced it is time.

The five questions of business

Knowing when that time has arrived comes down to five questions, Benioff believes.

“It all starts with you, you have to get clear about what is it that you really want, what is really important to you, how are you going to get it, how will you know when you’ve got it and what is preventing you from having it.”

“When you can answer all those five questions you’ll have clarity in your direction. The problem with most small businesses – and big businesses – is they can’t answer those questions.”

“If you can answer those questions then you can break out.”

Ultimately Benioff and Parker flag focus as the key individual attribute and being able to focus on answering those five questions is a very good first step to having a successful business.

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Reinventing Microsoft in the age of cloud computing

Microsoft’s CEO Satya Nadella seems genuine in his push for cloud services and alliances, but there’s still a lot of marketing speak wrapped up

“Why does Microsoft exist?” Asked the company’s founder Satya Nadella at the Dreamforce 2015 conference.

Nadella has asked this question before and his answer at the San Francisco event was that Microsoft exists to empower people through technology, something that Bill Gates and Paul Allen envisaged in the mid 1970s when they founded new startup.

To show how he sees Microsoft’s position in the modern workplace, Nadella gave a not completely flawless demonstration of Microsoft’s integration with Salesforce.

The products Nadella pushed were Windows Phone and Windows 10, which he claims to be part of a major change in businesses with data transforming the way we work.

Interestingly, he framed the Windows 10 IoT strategy around endpoint security. While there are millions of vulnerable devices, it’s not clear shipping them with Microsoft’s firmware will resolve the problem.

“What’s the big technology shift? It’s how we use the data.” Nadella proclaimed in laying out how he sees a data culture transforming the places we work.

A Grand Pivot

Microsoft itself is dealing with a cultural transformation with the company shifting across to cloud based subscription services. “The thing that it’s done for us is it’s not a one-for-one move. It’s not like we’re just moving Exchange on premise to Exchange as a Service, it changes the value proposition for the customers.”

Nadella sees those cloud services as an opportunity to sell more products – and add more value – to customers, particularly small businesses.

The CEO’s role

A business’ success relies upon its culture and Nadella sees the role of the CEO as being about curating that culture, “I always ask what it is that defines us.”

Part of that culture is about becoming customer focused which involves thinking outside of one company’s products or silos, “how is our industry going to succeed? It’s going to succeed if we can add value our customers. Our customers are going to make choices that aren’t homogenous.”

Those varied choices are what’s driving Microsoft’s current push into alliances.  “If we are going to realise the power of technology, then these partnerships will amplify that,” says Nadella.

While there were nuggets of truth in Nadella’s presentation, there was also a lot of truisms and somewhat meaningless slogans. While Microsoft’s push onto the cloud and into alliances that were once considered unholy might be genuine, it’s hard not to think there’s still a lot of marketing speak wrapped around it.

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Connecting people to spaces

Smartphones, beacons and smart software are the key to future retail success believes Proximity Insight’s Steve Orell

Beacon technologies are one of the hottest items in the Internet of Things with retailers, sports stadiums and hotels looking at how they  can use these devices to improve their operations and customer experiences.

At Dreamforce 2014 Proximity Insight’s Steve Orell spoke on the event’s wearable panel about how their service plugs into beacon technology and customer service.

Proximity Insight was born out of the 2013 Dreamforce Hackathon where Orell and his team were finalists. From that, the company set up operations in New York with a focus on customer relationship management in the retail industry.

Retail isn’t the only the field that Orell sees for Proximity Insight with the hotel and casino industries as being other targets.

“With the hotel, why check-in? Why not walk in and let your smartphone do it for you?” Orell asks.

“It’s all about making live so much more seamless and slick,” Orell adds. “There’s opportunities in every sector.”

For businesses looking at rolling out beacon technologies the key is to be adding value to enhance the customer experience, Orell believes.

“You have to be delivering something to the customer beyond tracking them, it’s about making the whole retail or hospitality experience better. It has to benefit the customer.”

With beacon technologies now becoming common and the supporting hardware being built into all smartphones, we can expect to see more applications coming onto the market. It’s worth considering how your business can use them to enhance the customer experience.

Paul travelled to Dreamforce 2014 as a guest of Salesforce

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Abolishing the service visit

Will the internet of things change the way we service our cars and industrial equipment?

“Service used to be an act of damage control,” said Salesforce’s Peter Coffee at the recent Dreamforce conference. “You are bleeding brand equity until that problem is fixed.”

Coffee’s view is that the internet of things is an opportunity to delight the customer with proactive service that allows companies to fix customers’ problems before they happen.

Zero planned maintenance

Taking this idea further is GE’s Chief Economist, Marco Annunziata, who sees the internet of things as an opportunity to introduce the concept of Zero Planned Downtime where there is no need to stop machines for scheduled repairs and maintenance.

“A lot of the maintenance work is done on a fixed schedule,” Annunziata. “You end up wasting time and money servicing machines that are perfectly fine.”

“On the other hand you might miss that something is about to go wrong between two maintenance periods.”

“The idea of the industrial internet is that by gathering so much data from these machines themselves – plus having the software to analyse this data – you will have information that flags to you when intervention is needed.”

Annunziata’s view is that connected machines won’t need to have regular service intervals, instead of insisting a car has  an inspection every ten thousand kilometers where the tyres are replaced and the oil changed, often unnecessarily, the vehicle need only be called in for maintenance when its sensors flag that a part or consumable needs attention.

Finding the benefits

While that can mean big savings for car owners, it’s in fields such as aviation, mining and logistics where the greatest benefits of Zero Planned Downtime would be found.

For businesses it’s another example of how they will fall behind if they don’t invest in modern technology as those who invest in newer, connected equipment will be able to reduce downtime and maintenance cost.

How achievable Zero Planned Downtime is in many fields remains to be seen, not least because of regulatory hurdles in sectors like aviation, however the idea does promise to change the business model of companies that depend upon service revenue.

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Delighting the customer – the new business normal

Peter Coffee, Salesforce Vice President for Strategic Research discusses the new business normal where mobile services, collaboration, community and understanding your data are essential tasks for every manager.

Salesforce’s Executive Vice President of Strategic Reserach, Peter Coffee joined the Decoding The New Economy channel at last week’s Dreamforce conference to discuss the new normal — delighting the customer.

Coffee’s role at Salesforce is to help the company’s potential clients understand the new normals of business life. “It’s a lot of listening,” he says.

In describing the new normal, Coffee is in tune with Salesforce’s CEO Marc Benioff in seeing mobile services as being one of the key parts of how business will look in the near future.

“The fundamental statement is your mobile device is no longer an accessory,” says Coffee. “It’s the first thing you reach for in the morning and it’s the last thing you touch at night.”

“Fundamentally people are mobile centric so we need to rethink our operations.”

Continuing the social journey

It’s not just mobile services that are changing the way we do, social media continues to be companies’ weak points in Coffee’s opinion.

“There’s research that’s come out of places like MIT that shows traditional print and broadcast media are still valuable for creating awareness of your brand but the final step of turning someone from knowing who you are into deciding to do business with you is now made today only when a trusted network confirms it.”

“People don’t make that final step of buying from you until they’ve consulted their trusted advisors.”

“Another fundamental change that’s happened is that the connectivity of the customer is such that if you have a customer that’s unhappy with you for even five or ten minutes there’s a tweet or a Facebook post or a LinkedIn update just begging to leak out and damage your brand,” says Coffee.

“The closer you can get to instantaneous resolution to the issue, the better.”

Internet of machines

With the internet of machines, the ability to resolve customers’ problems instantaneously becomes more more achievable in Coffee’s opinion.

“Connecting devices is an extraordinary thing,” says Coffee. “It takes things that we used to think we understood and turns them inside out.”

“If you are working with connected products you can identify behaviours across the entire population of those productslong before they become gross enough to bother the customer.”

“You can proactively reach out to a customer and say ‘you probably haven’t noticed anything but we’d like to come around and do a little calibration on your device any time in the next three days at your convenience.'”

“Wow! That’s not service, that’s customer care. That’s positive brand equity creation.”

Delighting the customers

All of these mobile, social and internet of things technologies will give businesses the tools to delight their customers and Coffee sees that as the great challenge in the new business normal.

While many businesses will meet the challenges presented by mobile customers and their connected machines Coffee warns those who don’t are in for a painful time.

“If you do not have delighted customers you have no market.” States Coffee, “the way that you delight customers is by making sure every interaction with you leaves them happier than they were before.”

“Traditional silos of sales, service, support and marketing must be dissolved into one new entity which is proactive customer connection.”

“Companies that neglect to adopt it will discover they have customers who are sensitive to nothing but price,” warns Coffee.

Paul travelled to Dreamforce in San Francisco as a guest of Salesforce.

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The real thing behind the internet of things

We need to think beyond technology to get value the real value from the internet of things says Alicia Asin, the CEO and co-founder of Spanish sensor company Libelium.

We need to think beyond technology to get value the real value from the internet of things says Alicia Asin, the CEO and co-founder of Spanish sensor company Libelium.

Libelium and its CEO Alicia Asin has been covered previously on this blog and we had the opportunity to record an interview with Alicia at the 2013 Dreamforce conference.

Alicia told us about her vision for how she sees cities and governments evolving in an era of real time accessible information, in many ways it’s similar to where the Deputy Lord Mayor of Barcelona sees his city being at the end of this decade.

“I would say the biggest legacy the internet of things can bring is transparency,” says Alicia. “In the smart cities movement the IoT gives an opportunity for have a dashboard for cities.”

“You can see the investment made for reducing traffic investment downtown, the carbon footprint reduced and the return on investment,” says Alicia. “You can have very objective facts to supply to the citizens and they can make better decisions.”

For this vision to become true, it means government data has to open to the community which is something that challenges many administrations, however Alicia also told the story of how her company supplied Geiger counters to volunteers monitoring the radiation fallout around the damaged Fukushima nuclear reactor in Japan.

“We made a project in Fukushima when the nuclear accident happened where we sent some Geiger counters to the hacker space,” says Alicia. “Suddenly all the people with the Geiger counters started to publish the data onto the internet.”

“They were keeping a totally independent radiation map made by the activist citizens.”

Alicia raises an important point of how citizens can be using technology independently of governments. This was most notable in the Occupy movements across the United States that sprung up in late 2011 where hackers set up independent communications networks and recorded events outside the control of mainstream media and government agencies.

While citizens can use these tools to get around official restrictions, governments play an important role in developing new industries around these technologies, Alicia sees the smart city investments made by Spanish cities as creating the start of a Spanish Silicon Valley.

“Despite the economy, we are seeing a number of projects in Spain around smart cities,” Alicia observes. “In fact, I’m saying Spain is becoming the Silicon Valley for smart cities.”

“In terms of attracting big companies to look at what’s going on in Spain and to build a bigger brand around the Internet of Things, I think that really helps.”

With government and citizens working together, Alicia sees the Internet of Things delivering great changes to society as it enables citizens and makes governments more accountable.

“It’s the real thing, it’s beyond technology.”

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