Sections

My Business, My Sleepless Nights

Jennifer Schulze

tired moonlighting employeeCan I afford public or private school for my family? Should we purchase that larger home next year? These are the types of questions small and midsized business owners must ask themselves. The division between personal and professional is often unclear and the business consumes most of their day – and their future. Much is at stake. Given this, what can a business owner do to ease the burden of their worries?

Don’t supersize me – and then charge me for it

In the modern world, a variety of tools are available to help a small business run smoothly. But small business owners often draw boundaries between what they view as tools for “big business” and the tools they believe are relevant to their needs. Even the naming of some of these tools can be confusing: How can software known as enterprise resource planning (ERP), for example, be a good fit for a one-person operation, or even a 10-person operation?

Instead of viewing business software as a single entity, it’s helpful to frame it as a collection of individual tools. An enterprise-level business may be able to afford the whole tool chest at once, but small businesses often don’t need quite so much right away. Instead, they focus on being able to purchase technology in “bite size” pieces, choosing tools as needed, rather than all at once.

While software isn’t a cure-all for a small business, at the end of the day it simply helps life run more smoothly by making it easier to manage finances, employees, and the never-ending regulatory changes, among other concerns. The freedom to mix and match is key, using only the useful tools with no obligation to explore the entire world of enterprise-level software right away.

Compliment my “gut feel” decision making

Software is often the tool that allow a business owner to keep their personal and professional worlds separate, while still ensuring both worlds are well managed. Whether it’s bookkeeping, taxes, marketing, or more, being able to turn to software that holds objective, unbiased information is a blessing in many forms. It provides data-based decision making and encourages less reliance on the inconsistent “gut feeling” that so many business owners have relied on for years.

In particular, it’s vital to be able to turn to data that has no relation to the often-subjective world that characterizes a business owner’s personal life. Whether a business manager or employee is calm or upset, stressed or relaxed, tools will present clear, unbiased information, making it easier to pivot back into the objective business owner mindset and make smart decisions.

Notably, midsized business are often better at making use of technology than small businesses, as research shows that only 18% of small business owners use Big Data analytics to make informed decisions, in comparison to 57% of midsized businesses. This indicates that small business owners may feel overwhelmed at the prospect of using technology tools, when they should embrace the potential for that technology to make their lives easier, instead.

By leveraging the right tools, and using them in the right way, business owners are able to find some solstice in their decision making. Since the risk of success sits squarely on their shoulders, any comfort they can find via greater insight and data, as well as tools build for them (that can grow with them) are key. They allow for planning and data to accompany the gut feel. Together, these are a powerful combination.

“Every time I get another data point, I’ve added another piece to the jigsaw puzzle, and I’m closer to seeing the answer. And then, one day, the overall picture suddenly comes to me.”- Joel Pittman, founder, MTV

The Digital Economy isn′t on the horizon. It′s here. Learn how to use it to your advantage in The Digital Economy: Disruption, Transformation, Opportunity.

Comments

About Jennifer Schulze

Jennifer Schulze is the Vice President of cloud marketing for SAP. In her role, she helps partners market and sell cloud solutions. She has over 15 years of technology marketing and management experience and is a small business owner in the San Francisco Bay area.

Hockey Fans Rejoice! SAPPHIRE NOW And ASUG Showcase The Ultimate Fan Experiences

Fred Isbell

Customer sessions at the SAPPHIRE NOW and ASUG conferences are always fascinating, spanning across the many industries and detailing the latest in best practices, technology, and innovative thinking. No one is left out – not even the most loyal hockey fan.

Last year, SAP CEO Bill McDermott brought the Stanley Cup – the “holy grail” of the National Hockey League (NHL) – on stage. Talk about an iconic moment! Bill was highlighting the new SAP analytics solution, which is currently enabling the NHL to calculate statistics on the SAP HANA platform and with a cloud-based solution. In fact, the NHL Network and NHL on NBC broadcasts have featured player profiles with insights generated by SAP solutions throughout this season, including the playoffs currently in progress.

Although the Stanley Cup didn’t pay a return visit to the SAPPHIRE NOW stage this year, I wasn’t at all disappointed after attending customer sessions featuring two elite hockey teams: Mannheim Adler Eagles and the San Jose Sharks.

The Mannheim Adler Eagles soar high

Mannheim is a German city that’s home to 400,000 people and the Mannheim Adler Eagles, a very successful professional ice hockey team in the German Hockey League (DEL). After winning the DEL championship seven times and hoisting the league’s version of the Stanley Cup last year, the Adler Eagles have been enjoying the limSANOW Hockey-1elight.

But with great success comes with some challenges. With an arena capacity of 13,500 fans, the team has 7,600 season ticket holders and averages 11,300 fans per home game.

The problem? The Adler Eagles didn’t know its fans as well as they would like.

And rising smartphone use and an increasing level of game fixation made this issue more apparent. The team’s organization needed to dramatically increase and tighten fan engagement before, during, and after games.

The solution was a fan app specifically designed for the Adler Eagles that runs on both Apple iOS and Android platforms. The mobile app rewards loyalty and engages fans with a coupon-center approach, where points accrued through team-related activities and ticket purchases can be used for discounted merchandise. Fans even receive points when the Eagles score a goal!

Overall, this approach is helping the Adler Eagles improve fan engagement, bring fans to the team store, and drive higher revenue. Unlike before, the team now has a much more complete profile and analysis of its fans available based on specific and real-time fan behavior. And with this information, the organization is rewarding loyalty, developing a core fan base within and beyond its season ticket holders, and personalizing marketing campaigns with greater ease.

Because this app has been so successful, Mannheim is even considering a version for the Apple Watch. The team is looking to expand its SAP solution by using wearables and sensor-based analytics that can help optimize team performance. At the same time, it will also increase its use of statistics with SAP solutions as the engine for data collection.

San Jose Sharks seize unprecedented customer insights

The San Jose Sharks, this year celebrating the team’s 25th year in existence, are one of the premier NHL franchises. Hasso Plattner, CEO of the SAP Executive Board, is the majority owner and holds a seat on the NHL Board of Governors. This is an excellent example of a midsized business with a lot happening around it – and with all of that activity comes a need for new systems.

The Sharks’ major business challenges were not unlike those of other fast-moving organizations facing new, expanded business needs. The Sharks’ business software systems were not up to speed with the business, compounded by a ticket-sales system that acted like an engine for lead management. Furthermore, every application was isolated and used as a standalone, creating islands of automation that made room for error and duplicate data.

SANOW Hockey-2

Consequently, there was an inherently inefficient sales process – and as we saw with the Adler Eagles, limited visibility into season ticket holders, including their renewal intent. The Sharks lacked one-on-one customer centricity and any understanding of the wider fan base. This situation significantly impaired the team’s sales pipeline and forecasts.

By turning to a solution for enhancing customer and fan engagement with a business goal of using data to turn insights into action, the team now has a holistic and 360-degree view of the customer while leveraging simplified data acquisition quickly in real time.  Responding to previous islands of automation, the new solution rapidly translates and converts information into value-added sales insight – giving the organization a single version of the truth.

The results the San Jose Sharks achieved were impressive. More than 70 people are now using the system and a quick rollout made for minimal impacts on its IT infrastructure. The team quickly realized improved sales and service processes, efficient lead management, and improved forecasting within its sales pipeline management. Season ticket renewals were at the highest level ever, thanks to better understanding of the fan experience and the ticket holders’ pains and expectations. Plus, the team is driving specific and targeted campaigns based on specific customer segments that result from the team data.

The Mannheim Adler Eagles and San Jose Sharks showcased innovative application of technology to their core sports business. And as always, the fans are the winners as they get to experience the coolest game on earth with two very successful and forward-thinking hockey teams.

For more, check our research brief on The Future of Sports Marketing: Play Locally, Think Globally, Drive Loyalty.

Comments

About Fred Isbell

Fred Isbell is the Senior Director of SAP Digital Business Services Marketing at SAP. He is an experienced, results- and goal-oriented senior marketing executive with broad and extensive experience & expertise in high technology and marketing. He has a BA from Yale and an MBA from the Duke Fuqua School of Business.

How Big Data Is Changing The News Industry

Maggie Chan Jones

In the runup to the U.S. presidential election, newsrooms are working at a fever pitch. But if we slow down a minute to take a closer look at modern-day news organizations, we might ask ourselves: Can they really provide accurate, unbiased information on current events at Twitter speed?

News and the art of gathering it has evolved exponentially in the last few years. How the news is consumed is also light years away from where it was a decade ago. The explosive growth of the Internet and mobile devices has anyone and everyone broadcasting their opinions. The former broadcast news landscape has shattered into millions of different sources, platforms, and feeds, each using curated content models that cater to the reader, allowing them to pick and choose their sources.

With the expanding market of content platforms and multichannel news sources has come a myriad of perspectives. Does having this choice of who we listen to – or don’t listen to – make us unintentionally biased? This question is incredibly important to consider when we as a society come together to make informed decisions that impact everyone’s future.

Today’s major news organizations are balancing two realities. One is civic responsibility for reliable, responsible journalism. The other is profitability that mandates speedy content for readers on the go. This has forced news providers to become data-driven machines – seamlessly reacting across browsers, mobile screens, and social feeds 24×7. The imperative for speed has trumped traditional ways of reporting news. Data algorithms now drive content. Data-driven research and statistics have become an important source to supplement the day’s news. Third-party data tools are being used.

But this new focus on Big Data is also a curse. A petabyte of unprocessed, unstructured data is almost as useful as having no data at all. That’s why better tools to manage Big Data and stronger data algorithms are needed to create content that can benefit today’s readers. This is an important initiative for SAP, and we’re providing technology that is already impacting the way news is prepared and consumed for important current events, such as the upcoming U.S. presidential election.

As the exclusive sponsor of Reuters’ Polling Explorer, SAP is working with Reuters to provide journalists and consumers the latest polling data, stories about the election, and more. Real-time data is fueling Reuters with the tools needed to execute news with accuracy, speed, and integrity. The new polling explorer increased their readers’ engagement from 240K visits for all of 2012 election cycle to 6.2M just in the first four months since launch in November. The Reuters election app uses the new data system to match users with the candidate who best fits with their own political leanings. And Reuters can also use software to inform polling data and other data sets into data visualizations that provide facts and stats in a dynamic, interactive manner.

By providing technology platforms that are easy to use and scalable for any sized business, technology providers can give news providers across the world a trove of insights that impact their readers in real time, especially during momentous, breaking news cycles.

For more insight on the power of Big Data, see The Risk And Reward Of Big Data.

This story originally appeared on SAP Business Trends

Comments

Maggie Chan Jones

About Maggie Chan Jones

Maggie Chan Jones is CMO of SAP, responsible for leading SAP’s global advertising and brand experience, customer audience marketing, and field and partner marketing functions across all markets. Her mission is to bring to life SAP’s vision to help the world run better and improve people’s lives through storytelling, and to accelerate company growth. A career-marketer in the technology industry, Maggie has held a succession of roles at Microsoft, Sun Microsystems and other technology companies.

Live Businesses Deliver a Personal Customer Experience Without Losing Trust

Lori Mitchell-Keller, Brian Walker, Johann Wrede, Polly Traylor, and Stephanie Overby

Trust is the foundation of customer relationships. People who don’t trust your business are not likely to become or remain customers.

The trust relationship has taken some big hits lately. Beloved brands like Chipotle and Toyota have seen customer trust ebb due to public perception of their roles in safety issues. Consumers continue to experience occasional data breaches from large brands.

Yet these traditional threats have short half-lives. The latest threat could last forever.

Most customers claim they want personalization across all the channels in which they interact with companies. Such personalization should create long-term loyalty by creating a new level of intimacy in the relationship.

sap_Q216_digital_double_feature3_images2But that intimacy comes at a high price. For personalization to work, brands need to gather unprecedented amounts of personal information about customers and continue to do so over the course of the relationship. Customers are already wary: 80% of consumers have updated their privacy settings recently, according to an article in VentureBeat.

Companies must get personalization right. If they do, customers are more likely to purchase again and less likely to switch to a competitor. Personalization is also an important step toward the holy grail of digital transformation: becoming a Live Business, capable of meeting customers with relevant and customized offers, products, and services in real time or in the moments of customers’ choosing.

When done wrong, personalization can cause customers to feel that they’ve been deceived and that their privacy has been violated. It can also turn into an uncomfortable headline. When Target used its database of customer purchases to send coupons for diapers to the home of an expectant teen before her father knew about the pregnancy, its action backfired. The incident became the centerpiece of a New York Times story on Target’s consumer intelligence gathering practices and privacy.

Straddling the Line of Trust

Customers can’t define the line between helpful and creepy, but they know it when they see it.

Research conducted by RichRelevance in 2015 made something abundantly clear: what marketers think is cool may be seen as creepy by consumers. For example, facial-recognition technology that identifies age and gender to target advertisements on digital screens is considered creepy by 73% of people surveyed. Yet consumers were happy about scanning a product on their mobile device to see product reviews and recommendations for other items they might like, the survey revealed. Here’s what else resonates as creepy or cool when it comes to digital engagement with consumers, courtesy of RichRelevance and Edelman Berland (now called Edelman).

Creepy

  • Shoppers are put off when salespeople greet them by name because of mobile phone signals or know their spending habits because of facial-recognition software.
  • Dynamic pricing, such as a digital display showing a lower price “just for you,” also puts shoppers off.
  • When brands collect data on consumers without their knowledge, 83% of people consider it an invasion of privacy, according to RichRelevance’s research, and 65% feel the same way about ads that follow them from Web site to Web site (retargeting).

Cool

  • Shoppers like mobile apps with interactive maps that efficiently guide them to products in the store.
  • They also like when their in-store location triggers a coupon or other promotion for a product nearby.
  • When a Web site reminds the consumer of past purchases, a majority of shoppers like it.

There are no hard-and-fast rules about which personalization tactics are creepy and which are cool, but trust is particularly threatened in face-to-face interactions. Nobody minds much if Amazon sends product recommendations through a computer, but when salespeople approach customers like a long-lost friend based on information collected without the customer’s knowledge or permission, the violation of trust feels much more personal and emotional. The stage is set for an angry, embarrassed customer to walk out  the door, forever.

sap_Q216_digital_double_feature3_images3It doesn’t help that the limits of trust shift constantly as social media tempts us to reveal more and more about ourselves and as companies’ data collection techniques continue to improve. It’s easy to cross the line from helpful to creepy or annoying (see Straddling the Line of Trust).

Online, customers are similarly choosy about personalization. For example, when online shoppers are simply looking at a product category, ads that matched their prior Web-browsing interests are ineffective, an MIT study reports. Yet after consumers have visited a review site to seek out information and are closer to a purchase, personalized content is more effective than generic ads.

Personalization Requires a Live Business

Yet the limits of trust are definitely shifting toward more personalization, not less. Customers already enjoy frictionless personalized experiences with digital-native companies like Uber, and they are applying those heightened expectations to all companies. For example, 91% of customers want to pick up where they left off when they switch between channels, according to Aspect research. And personalization is helpful when you receive recommendations for products that you would like based on previous in-store or online purchases.

sap_Q216_digital_double_feature3_images-0004Customers also want their interactions to be live—or in the moment they choose. Fulfilling that need means that companies must become Live Businesses, capable of creating a technological infrastructure that allows real-time interactions and that allows the entire organization—its structure, people, and processes—to respond to customers in all the moments that matter.

Coordinating across channels and meeting customers in the right moments with personalized interactions will become critical as the digital economy matures and customer expectations rise. For instance, when customers air complaints about a brand on social media, 72% expect a response within an hour, according to consulting firm Bain & Company. Meanwhile, an Accenture survey found that nearly 60% of consumers want real-time promotions; 48% like online reminders to order items that they might have run out of; and 51% like the idea of a one-click checkout, where they can skip payment method or shipping forms because the retailer has saved their preferences. Those types of services build trust, showing that companies care enough to understand their customers and send offers or information that save them time, money, or both.

So while trust is difficult to earn, once you’ve earned it and figured out how to maintain it, you can have customers for life—as long as you respect the shifting boundaries.

“Do customers think the company is truly acting with their best interests at heart, or is it just trying to feed the quarterly earnings beast?” asks Donna Peeples, a customer experience expert and the former chief customer experience officer at AIG. “Customer data should be accurate and timely, the company should be transparent about how the data is being used, and it should give customers control over data collection.”

sap_Q216_digital_double_feature3_images-0005How to Earn Trust for a Live Business

Despite spending US$600 billion on online purchases, U.S. consumers are concerned with transaction privacy, the 2015 Consumer Trust Survey from CA Security Council reveals. These concerns will become acute as Live Businesses make personalization across channels a reality.

Here are some ways to improve trust while moving forward with omnichannel personalization.

  • Determine the value of trust. Customers want to know what value they are getting in exchange for their data. An Accenture study found that the majority of consumers in the United States and the United Kingdom are willing to have trusted retailers use some of their personal data in order to present personalized and targeted products, services, recommendations, and offers.
    “If customers get substantial discounts or offers that are appealing to them, they are often more than willing to make that trade-off,” says Tom Davenport, author of Big Data at Work: Dispelling the Myths, Uncovering the Opportunities. “But a lot of companies are cheap. They use the information but don’t give anything back. They make offers that aren’t particularly relevant or useful. They don’t give discounts for loyalty. They’re just trying to sell more.”
  • Let customers make the first move. Customers who voluntarily give up data are more likely to trust personalization across the channels where they do business. Mobile apps are a great way to invite customers to share more data in a more intimate relationship that they control. By entering the data they choose into the app, customers won’t be annoyed by personalization that’s built around it.
    For example, a leading luxury retailer’s sales associates may offer customers their favorite beverages based on information they entered into the app about their interests and preferences.
  • Simplify data collection and usage policies. Slapping a dense data- use policy written in legalese on the corporate website does little to earn customers’ trust. Instead, companies should think about the customer data transaction, such as what information the customer is giving them, how they’re using it, and what the result will be, and describe it as simply as possible.
    “Try to describe it in words so simple that your grandmother can understand it. And then ask your grandmother if it’s reasonable,” suggests Elea McDonnell Feit, assistant professor of marketing at Drexel University’s LeBow College of Business. “If your grandmother can’t understand what’s happening, you’ve got a problem.”
    The use of data should be totally transparent in the interaction itself, adds Feit. “When a company uses data to customize a service or offering to a customer, the customer should be able to figure out where the company got the data and immediately see how the company is providing added value to the customers by using the data,” Feit says.
  • Create trust through education. Yes, bombarding customers with generic offers and pushing those offers across the different Web sites they visit may boost profits over the short term, but customers will eventually become weary and mistrustful. To create trust that lasts and that supports personalization, educate the customers.

Procter & Gamble’s (P&G’s) Mean Stinks campaign for Secret deodorant encourages girl-to-girl anti-bullying posts on Twitter, Facebook, and Instagram. The pages let participants send apologies to those they have bullied; view videos; and share tips, tools, and challenges with their peers.

P&G has said that participation in Mean Stinks has helped drive market share increases for the core Secret brand as well as the specific line of deodorant promoted by the effort. Offering education without pushing products or services creates a sense that companies are putting customers’ interests before their own, which is one of the bedrock elements of trust. Opting in to personalization seems less risky to customers if they perceive that companies have built up a reserve of value and trust.

“Companies that do personalization well demonstrate that they care, respect customers’ time, know and understand their customers and their needs and interests,” says Peeples. “It also reinforces that interactions are not merely transactions but opportunities to build a long-term relationship with that customer.”

Laying the Foundation for Live, Personalized Omnichannel Processes

sap_Q216_digital_double_feature3_images-0006Creating a personalized omnichannel strategy that balances trust and business goals starts with knowing the customer. This can happen only when multiple aspects of your business are coordinated in a live fashion. But marketers today struggle to collect the kind of data that could drive more meaningful connections with customers. In an Infogroup survey of more than 500 marketers, only 21% said they are “very confident in the accuracy and completeness of their customer profiles.” A little over half of respondents said they aren’t collecting enough data overall.

Collecting enough of the right types of data requires more holistic data-collection techniques:

  • Take advantage of the lower costs for processing and storing terabytes of data, and develop a data strategy that combines and crunches all the customer data points needed to drive relevant interactions. This includes transactional, mobile, sensor, and  Web data.
  • Social media analytics is also a central tactic. Social profiles and activity are rich sources of data about behavior and character, merging what people buy or look for with their interests, for instance. Such data can feed predictive analytics and personalization campaigns.
  • Experiment with commercial tools that can filter and mine the data of customers and prospects in real time. This is a significant step beyond basic demographic data collections of the past.

sap_Q216_digital_double_feature3_images-0007Once the necessary data is available, companies need the technology, processes, and people to make sensible use of it in an omnichannel personalization strategy. Only when a company is organized as a Live Business can that happen. Here’s how your company can move toward being a Live Business:
Be live across channels. Having a consistent customer journey map across channels is core to omnichannel personalization. It requires integration across multiple systems and organizational silos to enable core capabilities, such as inventory visibility and purchase/pickup/return across channels. This integration also constitutes a major chunk of the transition to becoming a company that can act in the moments that matter most to customers. If all channels can sync in real time, customers can get what they want in the moment they want it.

Free the data scientists. Marketing rarely has full control over the omnichannel experience, but it is the undisputed leader in understanding customer behavior. While data science is part of that understanding, it has traditionally played a background role. Marketers need to bring the data scientists into efforts to sort through the different options for digitizing the omnichannel experience. The right data scientists understand not only how to use the tools but also how to apply the data to make accurate decisions and follow customers from channel to channel with personalized offers.

Walgreens’ Technology Approach to Personalization

Walgreens is a leader in building the kind of technology base that can enable real-time, omnichannel personalization. Its digital transformation is 16 years in the making, according to Jason Fei, senior director of architecture for digital engineering at Walgreens. At the heart of its infrastructure is a Big Data engine that feeds many customer interaction and omnichannel processes, including customer segmentation. The company adds third-party systems in areas such as predictive analytics and marketing software. Walgreens has a cloud-first strategy for all new applications, such as its image-processing and print-ordering applications. Other elements of the drugstore chain’s technology platform include:

  • Application programming interface (API)-driven architecture. Walgreens’ APIs enable more than 50 partners to connect with its apps and systems to drive customer-facing processes, including integrations with consumer wearables to drive reward points for healthy habits, as well as content partnerships with companies such as WebMD. “With APIs we can be an extensible business, allowing other companies to connect to us easily and help in the digital enablement of our physical stores,” Fei says.
  • Responsive Web sites. The company’s Web site is built using responsive and adaptive design practices so that the site automatically adapts to the consumer’s device, whether that is a mobile phone, tablet, or desktop computer. “We have a single code base that runs anywhere and delivers a consistent, optimized experience to all of our customers,” Fei says.

Making the Most of the Technology Base

This technology foundation has allowed Walgreens to push forward in personalization. For example, according to Fei the company uses sophisticated segmentation and personalization engines to drive outbound e-mail and text campaigns to customers based on their purchase history and profile. “We don’t blast out messages to customers; we use our personalization recommendations to be relevant,” says Fei.

The next phase of this strategy is to develop live inbound personalization tactics, such as recognizing customers when they come back to the Web site and tailoring their experience accordingly. These highly automated, self-learning systems improve over time, becoming more relevant at the moment a customer logs back in.

“When you search for a product, the Web site will take a good guess of what you might actually want. If you always print greeting cards at the same time of year, for example, the system would automatically deliver content around that,” Fei explains. “Everyone comes to Walgreens with a mission, so we can be very targeted with our communications.”

Walgreens’ mobile app combines real-time personalization with convenience. You can scan a pill bottle to refill a prescription, access coupons, send photos from your phone to print in the store, track rewards, and find the exact location of a product on the shelf.

Walgreens also recently deployed a new integrated interactive voice-response system that includes a personalization engine that recognizes the individual, says Troy Mills, vice president of customer care at Walgreens. The system can then predict the most probable reason for the customer’s call and quickly get them to the right individual for further help.

How to Get Started with Live Customer Experiences

sap_Q216_digital_double_feature3_images-0008As Fei can attest, getting Walgreens’ omnichannel and personalization infrastructure to this point has involved a lot of work, with much more to come. For companies just now embarking on this journey, especially midsize and large companies, getting started will mean overhauling an outdated and ineffective technology infrastructure where duplicate systems and processes for managing customer data, marketing programs, and transactions are common.

A bad internal user experience often transcends into a bad customer-facing experience, says Peeples. “We can’t afford the distractions of the latest app or social ‘shiny penny’ without addressing the root causes of our systems’ issues.”

Live Business Requires Striking the Right Balance

The boundaries of trust are a moving target. Sales tactics that used to be acceptable decades ago, such as the door-to-door salesperson, are unwelcome today to most homeowners. And consumers’ expectations are unpredictable. At the dawn of social media, many people were anxious about their photos unexpectedly showing up online. Now our identities are tagged and our posts and photos distributed and commented on regularly.

But while consumers are getting more comfortable with online technology and its trade-offs, they won’t put up with personalization efforts that make use of their data without their knowledge or permission. That data has value, and customers want to decide for themselves when it’s worth giving it away. Marketers need to strike the right balance between personalization and a healthy respect for the unique needs and concerns of individuals. D!

 

Comments

Lori Mitchell-Keller

About Lori Mitchell-Keller

Lori Mitchell-Keller is the Executive Vice President and Global General Manager Consumer Industries at SAP. She leads the Retail, Wholesale Distribution, Consumer Products, and Life Sciences Industries with a strong focus on helping our customers transform their business and derive value while getting closer to their customers.

Tags:

Digital Transformation Needs More Than Technology (Part 2)

Andreas Hauser

In my last blog, I explained why design, design thinking, and experience matter in digital transformation, which goes beyond pure technology and business skills. The credo is to engage with your customers, and most importantly, with the users right from the beginning, in an iterative, user-centric design process.

Digital transformation is more than a one-time project; it is a journey. Ultimately, enterprises want to prepare their organization for a sustainable design-led digital transformation.

But how to achieve this? That is the focus of today’s blog.

Foster a design-led innovation culture

Changing a company culture is not easy. If you don’t want your company ending up like Nokia or Blackberry, you better start sooner than later experiencing new practices. More and more companies are training their people on design thinking and want to establish a culture of design-led innovation.Slide3.JPG

My formula for innovation culture is people + process + place.

You need to have the right skills in your organization (people): Business, technical and design skills to better understand the needs of customers and users. Business and technical skills are typically not the problem. But how many people with design background do you have in your organization? This is why more and more companies start hiring designers and train their employees on design thinking.

It is not just about having the people with the right skills. You also need to change the way (process) how you engage with customer and users. To be successful, you need to combine design thinking with agile methodologies. The process is pretty simple: You need to get people with the right skills together working as one team and iterate from the beginning to the end with the customers and users. Sounds simple, but it is sometimes difficult to execute in large global organizations.

Let me tell you a story.

We have trained about 300 people (business + IT) at one of our customers in design thinking and helped to establish five design thinking coaches in their organization. This was the most interesting outcome: After the exercise, seven out of 10 IT projects were initiated by the business. The customer told us that this was the first time where business proactively wanted to work with IT. This is a great start to improve a relationship which in recent years has gotten separated in many organizations.

In our experience, the place where people work together also has a huge impact on creativity. Therefore, we have established at SAP “customer-facing” co-innovation spaces – called SAP AppHaus – where customers and SAP collaborate and co-innovate as partners. Establishing creative spaces within your organization gives the cultural change a face. Skills and new ways of working are often not very visible. The space is physical and people see and feel that your organization is changing. Check out our virtual walk-through our AppHaus in Heidelberg.

In my last blog, I discussed our co-innovation journey with Mercedes-AMG, which paved Mercedes-AMG’s way to a sustainable digital transformation. Based on my experience, you first need to show with a lighthouse project that this methodology creates business value for the company. You can then build on this success and start the journey to establish a sustainable design-led culture in your organization.

Be prepared for a long journey. It takes time to change and influence the way how organizations work. There has never been a more exciting time for designers, because the industry is starting to see the huge value they can bring to organizations and the value they can bring for a successful digital transformation.

Have a look at a more detailed presentation and a video recording about the concept that “digital transformation is more than technology.” Learn more about customer success stories on the UX Design Services web page.

Stay tuned for more articles as part of this blog series, in which you can explore further perspectives on digital transformation and its various aspects, learn about organizational readiness for design thinking, and assess how ready your organization is to embark on this journey.

Read Part 1 of this discussion: Digital Transformation Needs More Than Technology.

This article originally appeared on SAP Business Trends.

Comments

Andreas Hauser

About Andreas Hauser

Andreas is global head of the design and co-innovation center at SAP. His team drives customer & strategic design projects through Co-Innovation and Design Thinking. Before he was Vice President of User Experience at SAP SE for OnDemand Solutions.