Sections

In-Memory: The Convergence Of Analytic And Operational Processing Is A Big Deal

Timo Elliott

For more than 40 years, organizations have been forced to run operational and analytic processes on different systems. The latency of disk-based databases and the high cost of live memory meant that combining operational and analytic processes just didn’t make economic sense.

Now new technology and falling costs are overturning a generation of analytics best practice. It’s becoming faster, simpler, and cheaper to use a single in-memory system for both operations and analytics.

HANA-submarine

There have been roughly three phases of in-memory development:

(1) In-memory databases

This idea is far from new (one of the first to tout this approach as a differentiator was TM1 by Applix in the 1990s). But the economics have changed radically since the advent of 64-bit systems, and in the last few years in-memory technologies such as SAP HANA have proved their worth helping radically speed up and simplify business user access to information.

(2) In-memory analytic platforms

The power of in-memory isn’t limited to traditional structured data processing. It is also particularly well adapted for other types of analytic processing that require complex, high-speed calculations, such as predictive analytics. Today, this kind of processing is typically carried out using systems that are separate from the main database. Bringing them into a single system again simplifies and speeds up business analysis.

The latest version of SAP HANA integrates support for in-memory text analysis, predictive analytics, big data, and business calculations such as complex profitability and costing, or dynamically reallocating budgets.

(3) In-memory platforms

SAP HANA now includes full featured application server, web server, and development environment that allows developers to leverage the power of in-memory, pushing as much of the complex logic down into the database as possible.

In 2012, SAP started releasing applications that combine the best of operations and analytics in a single solution running on SAP HANA— including SAP CRM , SAP Business One, SAP Sales and Operations Planning. And SAP has just announced that the company’s core business suite of applications now runs on SAP HANA.

In-memory has already become the architecture of choice for the recent generation of cloud-based application vendors – now existing companies can get the same benefits for their on-premise systems, without radical disruption to existing applications.

The Benefits of Convergence

The ability to do have transactional processing and analytics on the same platform brings many benefits, including:

  • Faster, better analytics. Business people can access data the instant it has been updated, without complicated and expensive replication and aggregation. Analytics can be embedded into operational processes without having to worry about data inconsistency because of time lags.
  • Lower costs. Yes, in-memory architectures remains more expensive than disk, but having a single reporting system, and the reduced costs of data duplication and manipulation result in a compelling business case even without the business benefits of faster decisions.
  • Simplified application architectures. Most operational systems today require layers of cached data tables in order to provide acceptable performance. In-memory technologies hold out the promise of radically simplifying data application architectures. For example the number of data tables in a financial application could be reduced to just two – with all views of the data (balance sheet, etc) calculated on the fly, at any moment.
  • More flexibility. Simplified architectures make it update and adapt both analytic and operational systems. Changes require tweaks to metadata rather than dumping, recalculating, and reloading large quantities of data.
  • A ‘single source of truth’. This has long been a holy grail of the analytics industry. Reducing data duplication, and making it easier to carry out operational data governance in real time (data quality, master data management)  is a big step forward.

Of course, no technology is a silver bullet. In particular, in-memory systems don’t directly fix some of the biggest problems plaguing the provision of business analytics, notably the pains of data integration across multiple incompatible systems, and the politics of deciding common definitions for business concepts across the organization. And in-memory does nothing to ensure that business people actually make best use of the data that is provided.

But is it a big deal that we can now knock down a technical barrier that has plagued the industry for over 40 years? Yes indeed!

Comments

About Timo Elliott

Timo Elliott is the VP of Global Innovation Evangelist at SAP. Over the last 25 years, I've presented to Business and IT audiences in over 50 different countries around the world, on themes such as Digital Transformation, Big Data and Analytics, the Internet of Things, the future of Digital Marketing, and the challenges of technology culture change in organizations.

How Digital Supply Chains Are Changing Business

Dominik Erlebach

In the real world, customer demands change and supply disruptions happen. Consumers and collaborative business partners have new expectations. Is your supply chain agile enough to respond?

As technology expands and the Internet of Things becomes increasingly prevalent, a digitized supply chain strategy is moving into the core of business operations. Today’s high-tech companies must adapt – speed and accuracy are crucial, and collaboration is more important than ever. The right digital tools are the key to developing an extended, fast supply chain process. The evolution of the extended supply chain can be seen with McCormack and Kasper’s study on statistical extended supply chains.

Ultimately, however, everything comes down to the efficient use of data in decision making and communication, improving overall business performance, and opening a whole new world of opportunities and competitive differentiation.

The changing horizon of supply chains in technology

Supply chain management now extends further than ever before. Until recently, the task for supply chains was simple: Companies developed ideas, produced goods, and shipped them to distribution points, with cost efficiency as one of the most prevalent factors. As the supply chain evolves into extended supply chain management, however, companies must plan beyond these simple steps.

The Digitalist summarizes these new market conditions as collaborative, customer-centric, and individualized. New products need to hit markets much faster, and customers expect premium service and collaboration. Increasingly, the supply chain must meet rapidly changing consumer demands and respond accordingly. Management can now be conducted by analysis of incoming data or by exception, as discussed in a presentation by Petra Diessner. Resilience and responsiveness have clearly become differentiators in the cutthroat high-tech market. To keep up, high-tech companies must change their method of conducting business.

What is the extended supply chain?

The extended supply chain refers to widening the scope of supply chain planning and execution, not only across internal organizations, but beyond a company’s boundaries. High-tech companies must involve several tiers of suppliers, manufacturers, distributors, and customers. Some businesses also study the popularity and dynamics of a product directly, such as through mining social media data. To lead the competition, modern businesses must orchestrate the extended supply chain to keep up with consumer demands, as consumers now look for fully integrated service experiences.

What makes the supply chain work in extended form?

There are several key factors to consider when updating your supply chain model. The first, access to information, is essential to managing digitized extended supply chains and unleashes benefits that can help your company grow beyond traditional models. All companies gather information, but companies that use this information effectively will excel where others do not.

World Market Forum discusses this in its report on extended supply chains. Digitizing the supply chain process can help manage even an extended, complex network and provide key access to critical information. The success of digitization relies on gathering accurate, pertinent information in a format that can be readily applied and used.  While speed is important, it is not enough. The information itself must be applicable to the company’s needs and it must provide data that allows companies to make more informed decisions about product growth, marketing, and supply chain distribution.

Real-time information access is a primary benefit of digitized supply chains. Market trends become instantly visible with real-time data and cloud-based analytics, as Marcus Schunter notes in this analysis. This insight allows companies to plan for new products and platform development as the market shifts. Eliminating the need to wait months to access and analyze data is critical for the high-speed technology market and also allows for assessment of critical situations. Resolving problems as they occur is more efficient than post-mortem analysis and allows companies to act rather than react. In extending your supply chain, look for technological advancements that allow you to gather data and analyze it in real time.

Consolidation of digital information is another major benefit to the digitized supply chain. Localized digital information can be gathered and analyzed to form executable action plans. Data becomes part of the planning and problem-solving cycle, improving overall communication and allowing for fuller, more meaningful problem-solving and planning. With digitization, speed is a factor, but the relevancy and application of information separates successful companies from the pack. For companies looking to extend their supply chain, this is a key element when searching analysis tools and platforms.

Is your high-tech organization ready to meet the challenges of a complex market and navigate the digital economy?

To learn more about digital transformation in high-tech supply chain, visit here.

Comments

More Resources, More Problems

Danielle Beurteaux

This is the second of a two-part series on resource volatility. As noted in the first post, globalization has created an environment of resource volatility. This post, with numbers 11 through 20 on the list, describes resources that are more stable than the previous 10. However, that doesn’t mean there isn’t turmoil, whether that’s environmental concerns in Indonesia’s palm oil production industry, or community organization for water rights in Chile. And, of course, whatever China does, the markets follow.

Top resources and trends

11. Natural Gas

According to the International Energy Agency, most natural gas comes from Russia, the United States, Canada, Qatar, and Iran, and the countries that use the most are the U.S., Russia, China, and Iran. There are sufficient reserves of natural gas, again according to the IEA’s projections, that should last past the year 2040. Liquefied natural gas, which is produced mostly by Qatar, with Australia set to overtake Malaysia for second place, has had a flat market recently. There isn’t the demand to keep up with increased production, so liquefied natural gas producers are looking for new markets, like cruise lines, to grow demand.

12. Tin

Most of the world’s tin comes from China and Indonesia. The tin market tanked last year because of less demand and lots of tin, although it did rally in July and then improve earlier this year, mostly because Indonesia is exporting less and easing the flood of tin on the market.

13. Gold

It seems like everyone’s crazy for gold right now. The precious metal is often perceived as a safer investment than other asset classes, and it’s up 20% this year. Famed investor George Soros just bought $264 million worth of shares in Barrick Gold. The Toronto-based gold-mining company is the world’s largest. Gold prices bumped down a bit while the market waited on the Federal Reserve’s meeting minutes, but some are saying gold will soon recover – and then some.

14. Nickel

Russia, Canada, and New Caledonia are the largest producers of nickel. Most is used to make stainless steel. Like several other commodities we’ve examined, there is more production than demand of nickel at the moment, which has led to depressed prices. China is a big consumer of nickel for stainless steel, and the country is using less because of a slowing real estate market.

15. Beef

The global demand for beef is up, but production is down due to a variety of factors. One is Australia’s decreased production due to drought conditions, which will mean 300,000 tons less beef for export this year. As Australia is a favored trading partner of the U.S., that will affect the American beef market. A recent study from Radobank predicts that China will increase live cattle imports for domestic processing, and Brazil will enter the U.S. market as well.

16. Wheat

It’s a good year for wheat. North American wheat production is doing well, although levels are down from the previous year, with five percent less planted in the U.S. and six percent less in Canada. According to the most recent USDA World Agricultural Supply and Demand Estimates report, total U.S. wheat supplies and use are up six percent and seven percent, respectively. Globally, the report projects a two percent increase in wheat supplies, and consumption will increase, too.

17. Iron Ore

Earlier this year, the iron ore market jumped, reportedly because of the Chinese government’s moves to help along the country’s economy. Things have settled down since then, with recent trading sending the per ton price downwards 22.9% from its high in April, which seems to be due to China’s increased crude steel production and also the government’s stopping speculative trading. They’ve also committed to transportation infrastructure projects, but there is still too much iron ore compared to demand.

18. Copper

As with iron ore, China’s announcement that it would be investing in transportation infrastructure affected the price of copper recently. This is likely a welcome piece of news, as copper had been trading at the lowest levels since March 2009. Output and demand are both projected for small increases this year. Chile has the largest open pit mine and the largest global reserves of copper, but it’s been facing difficulties in recent years including lack of water, which is essential for mining, and local community resistance.

19. Palm oil

Palm oil is a global big business to the tune of $50 billion, which is projected to increase to $88 billion by 2020. It’s in almost everything these days because it’s inexpensive, stable, and can be used for many applications. (It’s not always listed on ingredient labels as palm oil).  Most is produced in Malaysia. It’s also a bête noire of environmentalists – it’s linked to deforestation, the recent massive forest fires in Indonesia which were set, it’s thought, to clear land for plantations, and lost habitat for orangutans and increased worries about their extinction.

20. Aluminum

Aluminum rose overall in 2015, but took a dive in the last few months of the year. Market-watchers are hoping that China’s announcement that it will reduce aluminum output will help energize the market once oversupply is balanced. But one of the world’s biggest producers, Alcoa, is reorganizing, which could be an indication that the company is preparing for an era of depressed prices, despite continued healthy demand.

Digital transformation is affecting different industries at different speeds and on different scales. IDC reveals how in The Internet of Things and Digital Transformation: A Tale of Four Industries.

Comments

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:

The #1 Reason People Leave A Job Might Surprise You

Meghan M. Biro

Do you know the number-one reason employees leave a job? It isn’t because of their title, salary, or workload. They leave because of their managers.

Surprised? You shouldn’t be. It makes sense, and we have the research to prove it.

Multiple surveys have confirmed a manager can make or break an employee’s experience. A study by employee engagement firm TinyPulse identified various behaviors impact retention, such as micromanagement and a lack of opportunities for development. Gallup found “at least 75 percent of the reasons for voluntary turnover can be influenced by managers.”

Compensation, culture, colleagues, and balance all play a role—but the crux is the person who holds the role of supervisor.

When good intentions lead to bad management

Bad managers aren’t uncommon; most people have survived at least one. But bad managers aren’t bad people; more often than not, they just don’t have the skills they need to be effective or to recognize warning signs. Consider this:

Skilled workers aren’t automatically great managers. Companies often promote internally, rewarding skilled employees with a move to management. Moving some into management can be a solid strategy, but you can’t ignore the corresponding need for professional development. Before you promote an employee, you need to vet them carefully and provide access to appropriate training. Without that, new managers feel like they are expected to “wing it” and to learn as they go. And over time, the bad habits that arise from inadequate training can cause real problems.

Enthusiastic managers can overwork good employees. “If you want something done, ask a busy person,” Benjamin Franklin once said—and it’s true that good employees often work more efficiently, produce more, and take on more than required. Instead of rewarding above-and-beyond contributions, however, some managers push for more by consistently turning to the best people on their team. This can leave top performers feeling taken advantage of and burned out, spurring them to leave for a job that respects their time and dedication.

Positive working relationships must be a priority. People spend much of their waking hours at work. Managers are responsible for helping their teams be productive, and for improving morale and developing each team member’s skills. Employees who are boxed-in or feel unsupported will stop producing at the same rate, and they may leave entirely.

Anyone can handle a bad management situation temporarily, but… A good employee won’t hang around for years. Employees need to feel appreciated, challenged, and supported in the workplace. Good management doesn’t just help the individual, it helps the team, department, and organization succeed.

Treat employees well without sacrificing business goals

Unfortunately, many managers miss the warning signs. And then? It can be too late. According to HR consultant Bill Rehm, managers often fail to think about retention until the moment someone hands in a resignation notice. They’re often so focused on the battle for recruitment that they miss the internal weaknesses. Then they write off the departure as something with an external cause.

To build and nurture strong teams, you need to start with each manager. You can reduce turnover rates and eliminate the number-one reason for talent loss by encouraging sound management techniques. Where do you start? How about by:

Getting to know the person, not just the worker. What someone writes on a resume or does on the job isn’t their full biography. Take time to get to know team members; ask about their motivations, hidden skills, and outside interests. Learn what the company can do to support their professional growth.

Finding the right talent—for management and your team. Good recruiting finds the right employees to fit a company’s corporate culture and leadership. According to Smashfly,* of the2015 Fortune 500 companies, 57 percent share employee stories as part of their strategy to attract great candidates. Use employee advocates and authentic stories to help build teams who will work well together.

Embracing a culture of transparency and engagement. Engage employees in decision-making discussions and give them context for the work they do every day. A deeper level of understanding can be a motivating factor and may present an opportunity for innovation.

Celebrating good work. As often as “the squeaky wheel gets the grease,” a good job deserves attention, too. Plus, celebrating it may offer more benefits than drawing attention to errors. When employees do well—go above and beyond, or take initiative—recognize their work with verbal praise and earned rewards.

Remembering that change is good. Companies need constant innovation and new thinking to gain or keep a competitive edge. Employees who feel stifled or unchallenged won’t contribute to that evolution.

Providing ongoing feedback. Annual performance and engagement reviews are falling by the wayside, replaced by regular surveys and reports. Company leadership should consider continually offering employees both data-driven and personal feedback about their performance.

Companies need strong managers—and strong leaders. Be a strong leader. Invest in your management team. You’ll not only encourage innovation and growth—you’ll keep your employees happy and eliminate one of the key factors that can have them heading for the door.

*Smashfly.com is a TalentCulture client but the views expressed in this post are my own.

For more on how strong leadership leads to happier employees, see No Magic Pill To Boost Leadership And Employee Engagement

 

Comments