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5 Hotels Keeping Up With The Digital Economy

Danielle Beurteaux

The experience of staying at a hotel hasn’t changed much in the last 50 years. The hotel industry isn’t known for keeping abreast of technology. Due to the cost of investment, caution on the part of operators, and the franchise model many hotel chains use – making across-the-board tech adoption a challenge – change has come slowly to the hospitality industry. Some are still even charging for WiFi, a technology now available for free in many public places, even in the depths of the the New York subway. Hotels usually have more behind-the-scenes technology than what’s in front of guests, but even that tends to be fragmented, a problem which some startups are aiming to solve.

But with a new generation of personal and business travelers who have expectations of the level of technology they want in their rooms, some hotels are putting tech first to keep guests happy. Here are five that are embracing the latest in hospitality tech.

Crowne Plaza San Jose – Silicon Valley

An early robot adopter, the Crowne Plaza in San Jose – Silicon Valley (where else?) was one of the first adopters of robotics startup Savioke’s Relay robot. Savioke eschewed the cute, humanoid form of a Pepper for a practical design – it sort of looks like a mobile air purifier. A Relay isn’t meant to replace humans in hotels, but to respond to simple guest wishes, like delivering snacks and toiletries. Hotel staff aren’t spending time on small errands, although one guest did put a wet towel in a Relay and short-circuited its electronics. Whoops.

Henn-na Hotel

This Nagasaki-area hotel received a lot of attention when it unveiled a reception desk staffed by a robot dinosaur. The Henn-na Hotel is a hotel concept created around technology for the dual purpose of efficiency and environmental responsibility. Motion sensors activate guest room lights, radiant panel air conditioning moderates temperature, facial recognition units replace keys (unless a guest desires otherwise), robot porters will carry luggage, and there’s a robot cloak room to store bags.

Marriott Renaissance NYC

Marriott is scheduled to open a new hotel in spring 2016 in Midtown New York that has technology all over it. According to a press release, they’re calling it “New York’s first digitally enhanced hotel.” There will be a block-long digital display featuring an interactive, responsive “living wall,” as they’re calling it, leading to a virtual concierge.

Hotel 1000 Seattle

Seattle’s Hotel 1000 has heat-detecting sensors in all of its guest rooms, so hotel staff will know when a guest is in a room. The mini-bars send a notification when they need to be filled, and there’s a virtual golf club – a golf simulator with a tracking system that has 680 sensors to measure the ball’s performance.

CitizenM

CitizenM’s hotels have virtual check-in kiosks – they boast a one-minute time to check in or out. The rooms also have what they call “mood pads,” tablets that are basically remotes for the room’s environment, from temperature control to the window blinds.

Digitalization is touching every aspect of our lives. Learn more in Our Digital Planet: A Digital-First World.

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Amazing Digital Marketing Trends And Tips To Expand Your Business In 2015

Sunny Popali

Amazing Digital Marketing Trends & Tips To Expand Your Business In 2015The fast-paced world of digital marketing is changing too quickly for most companies to adapt. But staying up to date with the latest industry trends is imperative for anyone involved with expanding a business.

Here are five trends that have shaped the industry this year and that will become more important as we move forward:

  1. Email marketing will need to become smarter

Whether you like it or not, email is the most ubiquitous tool online. Everyone has it, and utilizing it properly can push your marketing ahead of your rivals. Because business use of email is still very widespread, you need to get smarter about email marketing in order to fully realize your business’s marketing strategy. Luckily, there are a number of tools that can help you market more effectively, such as Mailchimp.

  1. Content marketing will become integrated and more valuable

Content is king, and it seems to be getting more important every day. Google and other search engines are focusing more on the content you create as the potential of the online world as marketing tool becomes apparent. Now there seems to be a push for current, relevant content that you can use for your services and promote your business.

Staying fresh with the content you provide is almost as important as ensuring high-quality content. Customers will pay more attention if your content is relevant and timely.

  1. Mobile assets and paid social media are more important than ever

It’s no secret that mobile is key to your marketing efforts. More mobile devices are sold and more people are reading content on mobile screens than ever before, so it is crucial to your overall strategy to have mobile marketing expertise on your team. London-based Abacus Marketing agrees that mobile marketing could overtake desktop website marketing in just a few years.

  1. Big Data for personalization plays a key role

Marketers are increasingly using Big Data to get their brand message out to the public in a more personalized format. One obvious example is Google Trend analysis, a highly useful tool that marketing experts use to obtain the latest on what is trending around the world. You can — and should — use it in your business marketing efforts. Big Data will also let you offer specific content to buyers who are more likely to look for certain items, for example, and offer personalized deals to specific groups of within your customer base. Other tools, which until recently were the stuff of science fiction, are also available that let you do things like use predictive analysis to score leads.

  1. Visual media matters

A picture really is worth a thousand words, as the saying goes, and nobody can deny the effectiveness of a well-designed infographic. In fact, some studies suggest that Millennials are particularly attracted to content with great visuals. Animated gifs and colorful bar graphs have even found their way into heavy-duty financial reports, so why not give them a try in your business marketing efforts?

A few more tips:

  • Always keep your content relevant and current to attract the attention of your target audience.
  • Always keep all your social media and public accounts fresh. Don’t use old content or outdated pictures in any public forum.
  • Your reviews are a proxy for your online reputation, so pay careful attention to them.
  • Much online content is being consumed on mobile now, so focus specifically on the design and usability of your mobile apps.
  • Online marketing is essentially geared towards getting more traffic onto your site. The more people visit, the better your chances of increasing sales.

Want more insight on how digital marketing is evolving? See Shutterstock Report: The Face Of Marketing Is Changing — And It Doesn’t Include Vince Vaughn.

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About Sunny Popali

Sunny Popali is SEO Director at www.tempocreative.com. Tempo Creative is a Phoenix inbound marketing company that has served over 700 clients since 2001. Tempos team specializes in digital and internet marketing services including web design, SEO, social media and strategy.

Compelling Shopping Moments: 4 Creative Ways Stores Connect With Their Customers

Ralf Kern

compelling shopping momentsOn a recent morning, as I was going through my usual routine, my coffeemaker broke. I cannot live without coffee in the morning, so I immediately looked up my coffeemaker on Amazon and had it shipped Prime in one day. My problem was solved within minutes. My Amazon app, and my loyalty account with that company, was there for me when I needed it most.

It was in this moment that I realized the importance of digital presence for retailers. There is a chance that the store 10 minutes from my house carries this very same coffeemaker; I could have had it in one hour, instead of one day. But the need for immediate access to information pushed me to the online store. My local retailer was not able to be there for me digitally like Amazon.

Retail is still about reading the minds of your customers in order to know what they need and create a flawless experience. But the days of the unconnected shopper in a monochannel world are over. I am not alone in my digital-first mindset; according to a recent MasterCard report, 80% of consumers use technology during the shopping process. I, and consumers like me, use mobile devices as a guide to the physical world.

We don’t need to have an academic discussion about multichannel, omnichannel, and omnicommerce and their meanings, because what it really comes down to for your consumers, or fans, is shopping. And shopping has everything to do with moments in your customers’ lives: celebration moments, in-a-hurry moments, I-want-to-be-entertained moments, and more. Most companies only look for and measure very few moments along the shopping journey, like the moment of coupon download or the moment of sales.

Anticipating these moments was easier when mom and pop stores knew their customers by name. They knew how to be there for their shoppers when, where, and how they wanted it. And shoppers didn’t have any other options. Now it is crucial for companies to understand all of these moments and even anticipate or trigger the right moments for their customers.

In today’s digital economy the way to achieve customer connection is with simple, enjoyable, and personalized front ends that are supported by sophisticated, digital back ends. Then you can use that system to support your customer outreach.

Companies around the world are using creative and innovative methods to find their customers in various moments. Being there for customers comes in many different shapes and forms. Consider these examples:

Chilli Beans

A Brazilian maker of fashion sunglasses, glasses, and watches, Chilli Beans has a loyal following online and at over 700 locations around the world. Chilli Beans keeps its customers engaged by releasing 10 limited-edition styles each week. If customers like what they see, they have to buy fast or risk missing out.

Bonobos

Online men’s fashion retailer Bonobos reaches its customers with its Guide Shops. While they look like traditional retail outlets, the shops don’t actually sell any clothes. Customers come in for one-on-one appointments with the staff, and if they like anything that they try on, the staff member orders it for them online and it is shipped to their house. The 20 Guide Shops currently open have proven very successful for the company.

Peak Performance

Peak Performance, a European maker of outdoor clothing, has added a little magic to its customer experience. It has created virtual pop-up shops that customers can track on their smartphones through CatchMagicHour.com, and they are only available at sunrise and sunset at exact GPS locations. Customers who go to the location, be it at a lighthouse or on top of a mountain, are rewarded with the ability to select free clothing from the virtual shop that they have unlocked on their phones.

Shoes of Prey

The customer experience is completely custom at Shoes of Prey, a website where women can design custom shoes. From fabric to color, the customer picks every element, and then her custom creation is sent directly to her house. Shoes of Prey has even shifted its business model based on customer feedback. Its customers wanted to get inspiration and advice in a physical store. So Shoes of Prey made the move from online-only to omnicommerce and has started to open stores around the world.

While the customer experience for each of these connections is relatively simple – a website, a smartphone, an online design studio – the back end that powers them has to be powerful and nimble at the same time. These sophisticated back ends – powering simple, enjoyable, and personalized front ends – will completely change the game in retail. They will allow companies to engage their customers in ways we can’t even begin to imagine.

Technology will help you be there in the shopping moment. The best technology won’t annoy your customers with irrelevant promotions or pop-up messages. Instead, like a good friend, it will know how to engage with customers and when to leave them alone – how to truly connect with customers instead of manage them. Consequently, customer relationship management as we know it is an outdated technology in the economy of today – and tomorrow. Technologies that go beyond CRM will help retailers to differentiate. Aligning your organization and those technologies will be the Holy Grail to creating true and sustainable customer loyalty.

Learn more ways that business will never be the same again. Learn 99 Mind-Blowing Ways The Digital Economy Is Changing The Future Of Business.

Find out how SAP can help you go beyond CRM and support your retail business.

Ralf Kern is Global Vice President Retail for SAP and a retail ambassador for SAP. Interested in your feedback. You can also get in touch on Twitter or LinkedIn

This blog also appeared on SAP Customer Network.

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Ralf Kern

About Ralf Kern

Ralf Kern is the Global Vice President, Business Unit Retail, at SAP, responsible for the future direction of SAP’s solution and global Go-to-Market strategy for Omnicommerce Retail, leading them into today’s digital reality.

How Much Will Digital Cannibalization Eat into Your Business?

Fawn Fitter

Former Cisco CEO John Chambers predicts that 40% of companies will crumble when they fail to complete a successful digital transformation.

These legacy companies may be trying to keep up with insurgent companies that are introducing disruptive technologies, but they’re being held back by the ease of doing business the way they always have – or by how vehemently their customers object to change.

Most organizations today know that they have to embrace innovation. The question is whether they can put a digital business model in place without damaging their existing business so badly that they don’t survive the transition. We gathered a panel of experts to discuss the fine line between disruption and destruction.

SAP_Disruption_QA_images2400x1600_3

qa_qIn 2011, when Netflix hiked prices and tried to split its streaming and DVD-bymail services, it lost 3.25% of its customer base and 75% of its market capitalization.²︐³ What can we learn from that?

Scott Anthony: That debacle shows that sometimes you can get ahead of your customers. The key is to manage things at the pace of the market, not at your internal speed. You need to know what your customers are looking for and what they’re willing to tolerate. Sometimes companies forget what their customers want and care about, and they try to push things on them before they’re ready.

R. “Ray” Wang: You need to be able to split your traditional business and your growth business so that you can focus on big shifts instead of moving the needle 2%. Netflix was responding to its customers – by deciding not to define its brand too narrowly.

qa_qDoes disruption always involve cannibalizing your own business?

Wang: You can’t design new experiences in existing systems. But you have to make sure you manage the revenue stream on the way down in the old business model while managing the growth of the new one.

Merijn Helle: Traditional brick-and-mortar stores are putting a lot of capital into digital initiatives that aren’t paying enough back yet in the form of online sales, and they’re cannibalizing their profits so they can deliver a single authentic experience. Customers don’t see channels, they see brands; and they want to interact with brands seamlessly in real time, regardless of channel or format.

Lars Bastian: In manufacturing, new technologies aren’t about disrupting your business model as much as they are about expanding it. Think about predictive maintenance, the ability to warn customers when the product they’ve purchased will need service. You’re not going to lose customers by introducing new processes. You have to add these digitized services to remain competitive.

qa_qIs cannibalizing your own business better or worse than losing market share to a more innovative competitor?

Michael Liebhold: You have to create that digital business and mandate it to grow. If you cannibalize the existing business, that’s just the price you have to pay.

Wang: Companies that cannibalize their own businesses are the ones that survive. If you don’t do it, someone else will. What we’re really talking about is “Why do you exist? Why does anyone want to buy from you?”

Anthony: I’m not sure that’s the right question. The fundamental question is what you’re using disruption to do. How do you use it to strengthen what you’re doing today, and what new things does it enable? I think you can get so consumed with all the changes that reconfigure what you’re doing today that you do only that. And if you do only that, your business becomes smaller, less significant, and less interesting.

qa_qSo how should companies think about smart disruption?

Anthony: Leaders have to reconfigure today and imagine tomorrow at the same time. It’s not either/or. Every disruptive threat has an equal, if not greater, opportunity. When disruption strikes, it’s a mistake only to feel the threat to your legacy business. It’s an opportunity to expand into a different marke.

SAP_Disruption_QA_images2400x1600_4Liebhold: It starts at the top. You can’t ask a CEO for an eight-figure budget to upgrade a cloud analytics system if the C-suite doesn’t understand the power of integrating data from across all the legacy systems. So the first task is to educate the senior team so it can approve the budgets.

Scott Underwood: Some of the most interesting questions are internal organizational questions, keeping people from feeling that their livelihoods are in danger or introducing ways to keep them engaged.

Leon Segal: Absolutely. If you want to enter a new market or introduce a new product, there’s a whole chain of stakeholders – including your own employees and the distribution chain. Their experiences are also new. Once you start looking for things that affect their experience, you can’t help doing it. You walk around the office and say, “That doesn’t look right, they don’t look happy. Maybe we should change that around.”

Fawn Fitter is a freelance writer specializing in business and technology. 

To learn more about how to disrupt your business without destroying it, read the in-depth report Digital Disruption: When to Cook the Golden Goose.

Download the PDF (1.2MB)

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Our Government's Legitimacy Is In Danger

Hein Keijzer

It is a growing phenomenon: Governments are gradually losing support from their citizens. Citizens in European countries are also becoming disillusioned with their governments. This calls for a drastic improvement of the services provided to the most important and sole shareholder of the government—the citizen—because the government’s legitimacy is at stake.

Citizens’ confidence in government has been waning for some time now. There are reasons why populist and eurosceptic parties  have been gaining votes over the past years. The government must do everything within its power to win to rebuild confidence, and not just by fulfilling its basic tasks, because a feeble six can no longer save the parliamentary democratic system.

The victory of populist parties is the beginning of the end of the current democratic order. It is very likely that these parties will not participate in the government, because the other parties will mostly exclude them. As a result, the chasm between citizen and government keeps growing, creating a situation that reinforces itself and that holds very little chance of success in the future.

The base

We must return to the base to touch on the core of the problem. Western governments are complex bodies, but the basic idea behind them is rather simple: Citizens pay tax to a central, democratically elected system. In return, they expect basic services such as security, education, physical infrastructure, healthcare—and in the case of the Netherlands, dry feet, i.e. protection against water. It is not unreasonable to expect a western country to provide at least this bare minimum.

But this is where things is going wrong these days. Every country is dealing with at least one case in which the tax payers’ money is not allocated correctly. The Panama Papers is a recent example of this. The term cover-up often does not apply anymore, because civil servants are no longer even capable of hiding the chaos in a cover-up. These days the media are capable of making the content  of the cesspool available to the public in no time. A ministry that cannot manage its internal affairs has even more trouble proving its legitimacy to society.

The government must not only deal with organizational problems; mentality comes into play as well. Many governmental institutions see the taxpayer as such: a taxpayer with mostly obligations. This mindset need to change. It is time for a customer-centric approach: The citizen is the customer, and the customer is king. As is the case with the boardroom of a commercial party where shareholders cannot get away with mismanagement, the government should not be able to get away with mismanaging the assets of their sole shareholder: the citizen.

This approach requires a number of very strong measures:

1. Earnest use of apps and social media

In the past it was necessary to go to an office and make an appointment in order to communicate with the government. These days, social media allow for much more efficient communication. Governments can use apps and social media—potentially—to more quickly discover trends, indicate problems, and communicate with citizens. Now digital communication is mostly housed in separate departments. This is not sufficient for the much-needed model in which the citizen is the shining center of the services provided. Communication with the citizen should be at the core of the organization.

2. Make the policy completely transparent

Backroom politics and convoluted decision-making are no longer feasible. Citizens are entitled to the best possible access and information provision. The government has come a long way with open data, but is still very far from doing enough.

3. Clear communication

It is the duty of a good service provider to communicate clearly with its client. This also applies to the communication of the government with the citizen. Unfortunately, this fails all too often. Vague, official language and unclear wording are the order of the day. If a citizen does not understand the government, it creates a wedge. Civil servants should be forced to follow compulsory courses on clear communication on a B1 level. This is an official language level that is understood by the majority of the population and is effective to communicate messages in a clear way.

4. Smarter information linking

The government knows a lot about their citizens, but this information is not linked well or not linked at all. As a consequence, the government does not know anything about us at all. From a privacy point of view, this is of course not unattractive, but it is disastrous for the provision of good services.  The government cannot think with us if it doesn’t know who we are, if it doesn’t know our preferences and our problems. In order to achieve this, systems and an integral data policy must be connected, for one version of the truth.

Unfortunately these four points are still far from reality. This isn’t the first time that I have broached these problems. The communication between the government and the citizen is often very difficult. There are few apps, and the government uses social media in a very reactive way. It is not rare to only receive an answer after a few days. Smart connections between citizen data points are missing. Many governments are developing the majority of their IT solutions themselves, and barely believe that integration via standard solutions is possible. The government’s outlook is inward and doesn’t change, because there is barely any staff turnover.

Governments could follow the example of the Australian government, which started a digital transformation with a genuine Digital Transformation Office. Its primary focus is efficient and transparent service provision toward the citizen. Its motto: “Simpler, clearer, faster public services”—an easy but meaningful statement. It touches the core of what has to happen here as well.

The gap between government and citizens will not close on its own. A digital transformation is unavoidable if the government wants to stop the downward trend and not lose its legitimacy completely.

For more insight on digital transformation in the public sector, see Unlocking The Benefits Of Digitization For Governments.

 

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Hein Keijzer

About Hein Keijzer

Hein Keijzer is customer solution manager for the Public Sector Business Unit at SAP Nederland. After his education in Applied Economics and Public Administration, Hein worked for the Dutch Ministry of Finance, Budget Affairs directorate, and since 2000 at SAP. Connect with me on Twitter @heinkeijzer or <a href="https://nl.linkedin.com/in/heinkeijzer"LinkedIn.