A Business-First Approach to Digital Transformation

In part I of this series, we explored the definitions of Digital Transformation, IoT, and Smart Enterprise.

Digital transformation goes beyond normal organizational evolution. It is a metamorphosis enabled by new sources of information and new ways to interact with an organization’s eco-system. It’s said that “necessity is the mother of invention”—meaning we are satisfied with the status quo until some external force motivates us to change. An evolutionary breakthrough requires an external force that threatens organisms’ very existence—they must adapt or die. The Ice Age was a massive external force that caused many organisms to change. Likewise, today digital transformation is forcing change in businesses. And note that today’s external forces behave more like an incoming meteor than a slow-moving glacier. Slow evolution will not work here.

Over the last three decades, we have seen organizations change with the Information Age. The Data Warehouse phase illustrated valuable information existed in operational financial data that could be used to improve efficiencies within organizations. While working for EMC (now DellEMC), I had a lot of conversations with customers about building storage infrastructures for data warehouses. When sizing a storage infrastructure, knowing how much data is going to be written and how long the data will be stored is required. I was always amazed at how little guidance was provided to IT organizations from the sponsoring Business Unit as to the amount of data needed to be stored in the warehouse. The BU didn’t know what data they were going to collect, nor did they have any idea how long the data would need to be stored. We were often faced with sizing a project to collect everything and keep it forever. Bottom line: the BU didn’t have a clear set of objectives and believed if they didn’t jump on the data warehouse bandwagon, they would be destined to fail.

I am of the opinion that many organizations today are facing similar situations with IoT. Amara’s Law states, “We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.” Gartner’s research methodology, based on Amara’s Law, portrays its curved Hype Cycle in five phases. We may never know exactly where we are on the Hype Cycle—we can only tell where we were. For example, we can’t identify the peak until we see a decline.

I think we are somewhere on the left-ascending slope with inflated expectations and believe we have yet to reach the peak. I also consider the trough is an industry phenomenon and one that individual organizations don’t necessarily have to experience. It is the old story of missing goals: was the goal too high and, therefore, unattainable or was the goal appropriate and execution was faulty? Accurate goals are predicted by experiences. New technologies, by their nature, are hard to accurately predict since we don’t have the experience to base the prediction upon.

A Digital Transformation Game Plan

Just because we are early in the hype phase doesn’t mean organizations shouldn’t be investing in IoT, but they should think business first and technology second. For example, when data warehouse customers approached their projects with a clear set of business challenges and objectives in mind, their projects were more successful than those who led with technology. This doesn’t mean that organizations that started with technology first weren’t eventually successful; they just spent more time and resources getting there.

A smart enterprise is one that looks at their place in the world today, seeks to understand how their environment is changing, determines how they need to evolve, and looks to technology, people, processes and data to determine how to reach their goals. As I point out in my blog about data loss, if you defined yourself in the 80s as being in the record business, you had a short life expectancy. But, if you defined yourself as being in the music business and were able to take advantage of the digital transformation at the time, your brick and mortar storefront could have evolved into a worldwide enterprise. As history showed, it was the new businesses that profited from the digital music industry emergence.

An Illustrative Example

Let’s take a look at a couple of anonymous hoteliers—Property A and Property B. Both properties are full-service five-star providers catering to business and leisure travelers. Both are seeking to improve their on-premises guest experiences. Marketing at Property A has determined their customers want star treatment. Their customers are looking for a high-touch experience, where the staff and employees know their names and can anticipate their every need (based on past experience). Property B determined their customers want a fully-automated experience—minimizing staff interaction, while maximizing guest independence. Both organizations:

  • Set clear objectives
  • Identified the loyalty app on their guests’ smart phones as the key to providing the desired guest experience

When a guest arrives at the front desk at Property A, the concierge greets them by name with their room reservation already pulled up on the console. The guest’s loyalty phone app identified the guest with the property’s wireless location-based service, prompting the guest’s photo to be displayed on the concierge’s console. When the guest stepped up the desk, the concierge selected the correct picture to get the guest’s information displayed on the screen. To the guest, it appears the concierge personally recognized them like they were a sports or entertainment star.

When a guest arrives at Property B, the guest’s loyalty phone app signals the wireless location-based service that the guest has arrived. The guest is checked into the hotel automatically. The guest room number and electronic key is pushed to the app on the phone and the guest goes directly to their room without ever talking to property personnel. The app may even provide turn-by-turn directions for the guest to get to their room in order to avoid asking for directions.

Both properties are similar with two different business goals. Looking at the two solutions from the Internet of Everything (IoE) perspective presented in part one of this series:

  • IoT: In these examples, an app on the smart phone is the networked device.
  • Data: The high-touch model requires photos of the guest and/or their family members. Property B needs to tie PCI information to the app with requisite data protection requirements.
  • Processes: These solutions need to tie the new functionality into the existing systems. If these properties belong to chains, how will information be updated and shared with the other properties. Will data be replicated locally on-demand when guests book a reservation? How long will it take for data to be updated? If the guest books a reservation from the parking lot or cab, will the data be ready when the guest walks into the lobby?
  • People/Personnel: Property A needs to train the desk clerks and other personnel that are expected to provide the star treatment to guests. Sensitivity training on how to handle the guest accompanied by a woman that does not look like his wife would be valuable. Property B personnel need to be trained how to respond when the app doesn’t work correctly and how to interject themselves into the process with minimal impact and maximum efficiency to the guest.

For more about digital transformation in hospitality, read the Avaya blog Five Ways Hotels Can Build a Successful Digital Strategy.

IoT and other emerging technologies, like artificial intelligence, are providing the capability to respond to environmental pressures and business opportunities in significantly new ways. I propose that while everyone will be successful with IoT (eventually) or become extinct, the enterprises that start with business requirements first and apply technology (old and new) second, will become smart sooner and last longer.

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Trust: The Fuel Driving Digital Transformation

Though they are heading in a similar direction, all of the CIOs I work with are on their own individual roads to transform digitally whilst ensuring they stay ahead in the race to satisfy their end customers.

None of these roads however, are a cruise through the countryside. It’s up to us as their vendor partners to figure out how far into their journeys they have come, to create clear road maps, steer them safely around sharp corners, and keep them grounded on rough terrain—all whilst keeping eyes on the objective: the satisfaction of a smooth drive across freshly laid tarmac.

Inevitably, on this winding road, UK CIOs hit a number of barriers. In particular, there’s one challenge that can end a journey before it’s even managed to clock up a few kilometers. It’s the ability to build trusting relationships with decision makers, internal lines of business, and external vendors and partners. They all play an integral part in creating the right ecosystem, alliances, and consensus towards the journey of DX. Gaining their trust is a complex and delicate process—and it is a necessity.

It is incredible what leading CIOs in the UK are achieving as they work at building enough trust internally to bring their internal audience into the journey. After all, the value of this transformation needs to be articulated, measured, and organization-wide. When this is achieved, the journey of digital transformation becomes an enterprise wide initiative, internal champions are brought into the process, support from cross organizations is established from the start, and the political and financial barriers begin to disappear.

Once trust is established, automatically, technology stops leading the conversation but supports it. The discussion between the CIO and his internal ecosystem becomes business objective centric, defined by the use cases that his internal customers see value in bringing into the business. The technology is then used as a highway to connect defined checkpoints in order to create the shortest most efficient route.

Building internal trust is essential to a CIO’s success in driving digital transformation for his or her organization and in delivering results valued by the organization as a whole. A key outcome is the ability of the CIO to shift the conversation with his or her external ecosystem from a technology to a use cases led dialogue. With this shift, the technology is no longer chosen for its features, but for its ability to be to be a malleable vehicle ready to be taken apart at swift pit stops and pieced back together to suit the ever-changing environment. The focus is no longer on the finish line but on relevant and agile roadmaps defined by short- and long-term goals that support their transformation. Roadmaps that are not simply laid out and driven across at full throttle, but consistently checked and measured to ensure they are progressing and on track.

The CIO needs to be confident that their Vendor as co-driver is an experienced mechanic with that roadmap engraved on the back of their eyelids. They have to trust not only in the technology, but that that their co-driver is guiding them in the right direction towards their vision ahead and will remain by their side as their partner on the road to Digital Transformation.

A Prison Partnership That’s Changing Lives with Intention and Compassion

As someone who passionately advocates for female empowerment and corporate social responsibility (CSR), you can imagine my excitement when I was invited to visit the Phoenix-based contact center of B2B lead generation agency Televerde. I had been familiar with Televerde as a sales and marketing solutions company, but I soon found out it’s so much more. Four of Televerde’s five contact centers in Phoenix are employed entirely by women incarcerated at Perryville-Arizona State Prison Complex. Here’s what I experienced during my recent visit.

Stepping Inside a Prisoner-Run Contact Center

The unsettling experience of entering a prison complex was immediately brightened by the smiling faces of Televerde’s contact center employees. Behind these smiles were infectious personalities, positive outlooks and ambitious attitudes that permeated the four walls of the facility. Underneath each woman’s classic orange jumpsuit was a deep propensity for learning, the kind that many organizations now consider their “steel bridge.”

Keeping this in mind, it didn’t surprise me to learn that 25% of these women continue to work with Televerde after they’re released from prison. Even more impressive, about half of Televerde’s Phoenix corporate office employees came from Perryville. Working in departments like IT, marketing, finance and HR, these women are qualified and educated with a GED at minimum. In fact, with Televerde’s support, numerous ladies have gone on to complete their bachelor’s and master’s degrees, and one Televerde alumna received her M.B.A. at Arizona State University and now heads the customer service organization, globally.

In conjunction with the two contact center managers appointed by Televerde to supervise the facility, these women were clearly helping to successfully run the operation. As I observed the contact center in action, I could see one woman acting as head of training. Another worked as a sales primer. These women were writing scripts, handling calls and managing data just like any other organization. They engaged in friendly conversations before starting their shifts. Each employee worked fluently and expertly in what looked like any other call center in the world.

TELEVERDE

I had the privilege of sitting down and speaking with these incredible women, where I learned more about who they were and how they came into this business. Each woman met Televerde’s work eligibility requirements: a sentence of 10 years or less for a non-violent crime, a specific level of phone articulation and personality skills, and at least six weeks of training. Each woman is paid a minimum wage for eight-hour shifts. In addition to training, Televerde supports these women by offering educational opportunities, mentorship, and career building skills as they transition out of prison.

It didn’t take long for me to see that this group of women had profound ideas about business, social responsibility, and female empowerment. Each of the women I sat with had far-reaching career goals. They desired to excel by continually developing their interpersonal and technology skills. They had countless questions about how to launch a career in STEM (science, technology, engineering and math). As a female CMO working in the male-dominated tech industry, I was honored to help these women develop a foundation upon which they could continue to build.

Getting to the Heart of Operations (Literally)

My experience at the Perryville-Arizona State Prison Complex can be summed up in one question an employee asked during our group conversation: “Did your impression of us change when you came in and saw us in our jumpsuits?”

These dedicated women were noticeably concerned about what others thought of them. They wanted to be accepted and respected, despite the poor decisions they’ve made in the past. Televerde reminds these women daily that just because they’ve made poor choices doesn’t mean they are bad people. The organization’s unique rehabilitation and education model allows us to see ourselves in these women. In showing compassion, empathy and respect, Televerde pulls back the curtain to reveal who these women really are. They are indeed convicts, but they are also part of the 14 million Americans who desire a full-time job. They’re flourishing members of today’s growing labor market. They’re hard-working, forward-thinking individuals who simply arrive to work in a different uniform than you and I do.

The benefits of this movement are astronomical. Televerde is helping to actively lower the rate of jobless individuals with a prison record, which is currently as high as 60%. The organization is empowering women by helping them determine what kind of leaders they want to be as they work to complete their sentences. The brand is reversing the psychological effects of U.S. penitentiaries that drive so many back to prison. Above all, however, Televerde’s mission serves as a critical reminder of the things we all must be constantly aware and in pursuit of: compassion, intention, kindness and respect.

TELEVERDE

We hear how companies need to go above and beyond for their customers, staff and communities at large. To me, there’s no better way to do this than by showing compassion and respect as an organization. Despite today’s rapid pace of innovation, the best way to connect and drive change is to simply be human. Imagine the profound global impact of more organizations understanding and embracing this sentiment. At the end of the day, we’re all in need of some help. We’re all in this together.

When it comes to corporate social responsibility, Televerde is walking the talk. For that, I give the brand a standing ovation. Learn more about Televerde’s mission.

3 CX Stats That May Change How You Think About Digital Transformation

Technologies like Artificial Intelligence, automation, big data, and the Internet of Things have made digital transformation an absolute necessity for organizations. With people, processes, services and things more dynamically connected than ever, companies are feeling relentless pressure to digitize, simplify, and integrate their organizational structures to remain competitive.

But there’s a big hole in the fabric of most digital transformation (DX) plans: the customer experience (CX). The problem isn’t that companies fail to understand the importance of the CX in relation to digital transformation. Rather, most fail to understand their customers well enough to envision a truly customer-centric, digitally-transformed environment. Just consider that 55% of companies cite “evolving customer behaviors and preferences” as their primary driver of digital change. Yet, the number one challenge facing executives today is understanding customer behavior and impact.

A massive part of digital transformation involves building a CX strategy, and yet customer centricity remains a top challenge for most. In fact, I encourage you to be your own customer within your organization. Walk in your customers’ shoes, contact your organization as your customers would. What was your web experience? Was the expert knowledgeable during a chat conversation? How well did the mobile app work for you? Did you have a connected experience? Given your experience, how brand-loyal would you be to your organization?

Here are three statistics that will get you rethinking your CX strategy in relation to digital transformation:

  1. 52% of companies don’t share customer intelligence outside of the contact center. In other words, over half of companies are limiting the customer journey to the contact center even though it naturally takes place across multiple key areas of business (i.e., sales, marketing, HR, billing). Businesses must ensure customers are placed with the right resource at the right time, whether it’s in a contact center or non-contact center environment. The key is being able to openly share customer data across all teams, processes and customer touchpoints.
  2. 60% of digital analytics investments will be spent on customer journey analytics by 2018. Customer journey analytics—the process of measuring the end-to-end customer journey across the entire organization—is critical in today’s smart, digital world. Companies are rapidly investing in this area to identify opportunities for process improvement, digitization, automation and, ultimately, competitive differentiation.
  3. 60% of customers change their contact channel depending on where they are and what they’re doing. This means organizations must focus less on service and more on contextual and situational awareness. Businesses must work to create a seamless experience—regardless of device, channel, location or time—supported by customer, business and situational context captured across all touchpoints.

The CX should influence every company’s digital transformation story. For more tips, insights, and impactful statistics check out our eBook, Fundamentals of Digital Transformation. Let me know what you think. We look forward to hearing from you.