Category Archives: Digital Transformation

Why CIOs Should Co-Lead Customer Experience

GUEST POST from Howard Tiersky

Forrester recently gathered top Customer Experience (CX) professionals from around the world for the Forrester CX Forum in New York. For the uninitiated, CX is the discipline of defining the step-by-step customer journey from marketing through sales and service. It defines the key capabilities, content, and interfaces that need to be present at each customer touchpoint and how those touchpoints work together to form a cohesive experience.

At the conference, extensive data was presented to support the argument that delivering a seamless customer experience is more important than ever. In fact, it’s the primary way digital disruptors, like Uber and Amazon, are taking share from more traditional brands.

Forrester found that from 2011 to 2015, revenues for companies that scored near the top of the Forrester CX Index™ outgrew that from a group of companies who scored poorly (CX laggards in Forrester’s terminology) by more than five to one.

But who is actually in charge of CX, and who should be? Many CIOs classically would respond that these types of matters―the design of the website, its features, and generally how we interact with the customer―is the responsibility of marketing or other areas of “the business.” Once “business” decides what they want, IT will build and support it – that’s the breakdown of responsibilities. For the CIO, this may seem to be the most efficient arrangement, as they have plenty to worry about and sometimes it’s nice to be able to identify something they don’t have to focus on.

But in testing this classic mindset through conversations with many of the CX experts at the Forrester Summit, I heard a strong, unanimous dissent with this traditional view. The view of the CX community is that to deliver great results in customer experience, senior IT leadership must be intensively involved in the full CX lifecycle, not merely a recipient of requirements when it’s time to write some code, and not merely kept apprised in an “FYI” type fashion. For example, Ori Soen, General Manager of Medallia Digital, a leading provider of CX software, offered, “We clearly see that when CIOs and their IT teams are customer-centric and focused on CX, the organization is able to generate much better business outcomes from its CX investment.”

These experts point to successful CX companies, such as Google, Facebook, and Airbnb, where the development teams and business teams are working as one unit, making decisions about the experience, and implementing it together.

As Daniel Davenport, Managing Director of Liquid Hub, an agency that focuses on customer engagement, articulated, “I think it is important for the CIO to have a voice at the table and co-create the ultimate solution.”

But as busy as enterprise CIOs and their key lieutenants are, I pressed the CX experts at the Forrester Forum as to exactly why it’s truly essential that the CIO be so aggressively involved in CX and what the specific areas of value are. After speaking with some CX professionals, I derived five key areas of significant value that are derived from CIO involvement in the CX process.

1. Art of the Possible

CX innovation sits at the intersection of customer need and the ever-changing landscape of what is technically possible. It’s too abstract for CX professionals to define requirements and ask IT to figure out how to make them work if the CX teams don’t have a good sense of what they have to work with. New technologies from Artificial Intelligence (AI) to Virtual Reality to In-memory computing make it possible to do things today that were impractical just a year or two ago. But IT can’t be expected to “brief” CX professionals on every technology in the world. Instead, the process needs to be a collaboration of those studying what customers need and those studying what technology is newly enabling so that they can pool their knowledge and find new intersections where value can be created for the customer and the company. That only happens when IT is intimately involved in the ongoing process of considering the next generation CX.

2. Understanding Level of Effort and Dependencies for Prioritization and Planning

In an enterprise, there are typically many systems and many simultaneous programs going on that impact what can be implemented, when it can be implemented and with what level of effort. CX teams need to be constantly considering how their visions intersect with the technical reality of enterprise IT to develop CX roadmaps that aggressively bring new capabilities to market, but don’t crash headlong into other initiatives, system upgrades, or compliance issues.

Furthermore, CX design requires the continuous balancing of the customer’s optimal experience and various business considerations, including the cost of implementing new capabilities and the cost of supporting them. A significant component of these cost factors is IT. Therefore, there is a constant and ongoing need to both understand from IT what the level of effort might be for any given enhancement, and perhaps even more importantly, IT should be a creative collaborator in thinking about how to optimize technical approaches so that great CX ideas can be implemented with a sensible value equation. To do this effectively, IT can’t just “cost out” requirements provided by the business, but needs to be “on the inside” to understand what is really trying to be accomplished. Sometimes the answer that works economically relies on a different set of requirements than that which was initially envisioned, and an engaged senior IT partner can get creative with their colleagues to search for the best value equation.

3. Measuring CX

Measurement is a huge component of CX. The goal of CX is to move the customer through a journey from awareness to consideration to purchase to advocacy and loyalty. Many discreet components make up this journey across various touchpoints: the emails sent to customers, individual features of an app, the information available to call center representatives, and the way returns are handled. The constant obsession of CX professionals is, “How do we make this process better so the customer is more delighted and the business outcome is even more robust?” But to do so, it is essential to constantly measure the impact of each individual component of the customer’s mindset and behavior. Measuring these many interactions is often complex because it requires collecting data across many different touchpoints and then being able to correlate it so as to figure out the puzzle of causality. That requires understanding enterprise data and how to connect it across very diverse systems ― an expertise that IT needs to bring to the table.

In addition to the enterprise systems themselves, there are many excellent and deeply technical tools that support the CX measurement process. CIOs need to be deeply involved in these systems just as they would in finance or HR systems. I spoke with David McBride, a CX expert and Director of Product Management at IBM who argued, “CIOs have long been focused on creating technology to help businesses operate; when they participate in the CX process, they get to see data or even videos of customers and how they may be struggling to move through the current customer journey.” IBM’s Behavioral Analytics tool (formerly known as Tealeaf), for example, offers tools that record user sessions for analytical purposes. McBride notes, “There is nothing like seeing a session replayed to illustrate the extent of a particular struggle.”

4. True End-to-End Perspective

Lastly, in enterprises very often there isn’t just one CX initiative, but many, focused on different products, channels, touchpoints, or customer segments. The office of the CIO can often make sure that the ultimate customer experience is achieved by making sure that there is cohesion to both the technology and also the management of data across these different initiatives.

I spoke with Angela Wells, Senior Director, CX at Oracle about this, “At Oracle, what we have seen is that the CIO can and should be essential to CX decisions. What has happened at a lot of bigger companies is that they have made many ‘one-off’ decisions about what they thought were best-in-breed solutions in separate [areas of the business], and then the data didn’t talk to each other. It all got pretty sporadic and expensive, and it didn’t really deliver the customer experience [desired]. So, what we have found is that CIOs have become a centralized source for thinking about what’s going to happen to that data. They are thinking more of an umbrella; what’s best for the whole company, not just what’s best for my little niche?”

As small steps in customer experience grow into a larger program, you run the risk of chaos if there isn’t someone with the broader perspective. Dimitry Grenader, VP Product Marketing at Luminoso, a leading player in the AI arena, expressed this passionately, “In this day and age, CX should not just be left to marketers. Software is eating the world, and being able to put together the right platform will ultimately determine the success or failure of the efforts. Everything in today’s world starts as a feature, then becomes a product, which in turn becomes a platform, and finally becomes the operating system. If you don’t have the right operating system, you are building a castle on the sand.”

“I believe that a CIO must at the very least be a strong stakeholder, if not the driver of the CX process.”

Oracle’s Wells summed up this shift in terms of the evolving role of the CIO in our new digitally transformed world, “If you are thinking of the CIO as that straight tech-minded person, you are going to miss out on that more modern CIO that is a Chief Innovation Officer who takes responsibility to figure out how we make the most of what we are spending on technology to deliver the best customer experience.”

5. Changing the Way IT Operates

Finally, the level of transformation required to enable enterprises to deliver on their customer’s digital expectations may require a significant transformation in many facets of how IT operates, so it’s important for the CIO to deeply understand this difference.

As Forrester Vice President and Research Group Director Sharyn Leaver summed it up, “Compelling experiences, delivered digitally, separate CX winners from laggards. Firms that lead their industries to customer experience aggressively embrace business technologies to help win, serve, and retain customers — and they do so at rapid pace. This requires intense involvement from CIOs and their teams. Not at an arm’s length. But through ongoing collaboration and innovation.

“CX brings new prominence to technology’s role, but also new pressures on CIOs. The pervasive need for digital experiences exposes old systems, static organizations, and especially outmoded cultures that cannot deliver at the speed of the customer. For the CIO, this is much more daunting than merely spinning up a digital or mobile team. For many, success will require an overhaul of their organization – the people, processes, governance, and technology itself.”

This article originally appeared on the Howard Tiersky blog

Image Credits: Unsplash

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Four Deadly Business Myths

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Four Deadly Business Myths

GUEST POST from Greg Satell

The unicorn is perhaps unique among myths in that the creature doesn’t appear in the mythology of any culture. The ancient Greeks, for all of their centaurs, hydras and medusae, never had any stories of unicorns, they simply thought that some existed somewhere. Of course, nobody had ever seen one, but they believed others had.

Beliefs are amazing things. We don’t need any evidence or rational basis to believe something to be true. In fact, research has shown that, when confronted with scientific evidence which conflicts with preexisting views, people tend to question the objectivity of the research rather than revisit their beliefs. Also, as Sam Arbesman has explained, our notions of the facts themselves change over time.

George Soros and others have noted that information has a reflexive quality. We can’t possibly verify every proposition, so we tend to take cues from those around us, especially when they are reinforced by authority figures, like consultants and media personalities. Over time, the zeitgeist diverges further from reality and myths evolve into established doctrine.

Myth #1: We Live In A VUCA Business Environment

Today it seems that every business pundit is talking about how we operate in a VUCA (Volatile, Uncertain, Complex and Ambiguous) world. It’s not hard to see the attraction. Conjuring almost apocalyptic images of continuous industrial disruption creates demand for consulting and advisory services. It’s easier to sell aspirin than vitamins.

The data, however, tell a different story. In fact, a report from the OECD found that markets, especially in the United States, have become more concentrated and less competitive, with less churn among industry leaders. The number of young firms have decreased markedly as well, falling from roughly half of the total number of companies in 1982 to one third in 2013.

Today, in part because of lax antitrust enforcement over the past few decades, businesses have become less disruptive, less competitive and less dynamic, while our economy has become less innovative and less productive. The fact that the reality is in such stark contrast to the rhetoric, is more than worrying, it should be a flashing red light.

The truth is that we don’t really disrupt industries anymore. We disrupt people. Economic data shows that for most Americans, real wages have hardly budged since 1964. Income and wealth inequality remain at historic highs. Anxiety and depression, already at epidemic levels, worsened during the Covid-19 pandemic.

The recent great resignation, when people began leaving their jobs in droves, helps tell this story. Should anyone be surprised? We’ve been working longer hours, constantly tethered to the office even as we work remotely, under increasing levels of stress. Yes, things change. They always have and always will. We need to adapt, but all of the VUCA talk is killing us.

Myth #2: Empathy Is Absolution

Another favorite buzzword today is empathy. It is often paired with compassion in the context of creating a more beneficial workplace. That is, of course, a reasonable and worthy objective. As noted above, there’s far too much talk about disruption and uncertainty and not nearly enough about stability and well-being.

Still, the one-dimensional use of empathy is misleading. When seen only through the lens of making others more comfortable, it seems like a “nice to have,” rather than a valuable competency and an important source of competitive advantage. It’s much easier to see the advantage of imposing your will, rather than internalizing the perspectives of others.

One thing I learned living overseas for 15 years is that it is incredibly important to understand how people around you think, especially if you don’t agree with them and, as is sometimes the case, find their point of view morally reprehensible. In fact, learning more about how others think can make you a more effective leader, negotiator and manager.

Empathy is not absolution. You can internalize the ideas of others and still vehemently disagree. There is a reason that Special Forces are trained to understand the cultures in which they will operate and it isn’t because it makes them nicer people. It’s because it makes them more lethal operators.

Learning that not everyone thinks alike is one of life’s most valuable lessons. Yes, coercion is often a viable strategy in the short-term. But to build something that lasts, it’s much better if people do things for their own reasons, even if those reasons are different than yours. To achieve that, you have to understand their motivations.

Myth #3: Diversity Equity And Inclusion Is About Enforcing Rules

In recent years corporate America has pushed to implement policies for diversity, equity and inclusion. The Society for Human Resource Management even offers a diversity toolkit on its website firms can adopt, complete with guidelines, best practices and even form letters.

Many organizations have incorporated diversity awareness training for employees to learn about things like unconscious bias, microaggressions and cultural awareness. There are often strict codes of conduct with serious repercussions for violations. Those who step out of line can be terminated and see their careers derailed.

Unfortunately, these efforts can backfire, especially if diversity efforts rely to heavily on a disciplinary regime. As the philosopher Ludwig Wittgenstein pointed out long ago, strict rules-based approaches are problematic because they inevitably lead to logical contradictions. What starts out as a well-meaning effort can quickly become a capricious workplace dominated by fear.

Cultural competency is much better understood as a set of skills than a set of rules. While the prospect of getting fired for saying the wrong thing can be chilling, who wouldn’t want to be a more effective communicator, able to collaborate more effectively with colleagues who have different viewpoints, skills and perspectives?

To bring about real transformation, you need to attract. You can’t bully or overpower. Promoting inclusion should be about understanding, not intimidation.

Myth #4: People Are Best Motivated Through Carrots And Sticks

One of the things we’ve noticed when we advise organizations on transformation initiatives is that executives tend to default towards incentive structures. They quickly conjure up a Rube Goldberg-like system of bonuses and penalties designed to incentivize people to exhibit the desired behaviors. This is almost always a mistake.

If you feel the need to bribe and bully people to get what you want, you are signaling from the outset that there is something undesirable about what you’re asking for. In fact, we’ve known for decades that financial incentives often prove to be problematic.

Instead of trying to get people to do what you want, you’re much better off identifying people who want what you want and empowering them to succeed. As they prosper, they can bring others in who can attract others still. That’s how you build a movement that people feel a sense of ownership of, rather than mandate that they feel subjugated by.

The trick is that you always want to start with a majority, even if it’s three people in a room of five. The biggest influence on what we do and think is what the people around us do and think. That’s why it’s always easy to expand a majority out, but as soon as you are in the minority, you will feel immediate pushback.

We need to stop trying to engineer behavior, as if humans are assemblages of buttons and levers that we push and pull to get the results we want. Effective leaders are more like gardeners, nurturing, growing and shaping the ecosystems in which they operate, uniting others with a sense of shared identity and shared purpose.

— Article courtesy of the Digital Tonto blog
— Image credits: Unsplash

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The Two Main Opponents of Digital Success

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The Two Main Opponents of Digital Success

GUEST POST from Howard Tiersky

I have written before about the importance of the role that emotion plays in driving your customer’s or audience’s behavior in digital channels.

When creating digital touch points, it is natural to focus on the capabilities and content that we believe customers will want, need, and hopefully love. This is essential as your digital touchpoint must have a strong core value proposition to the visitor in order to be viable.

However, it’s important to be aware of a psychological factor called Negativity Bias. What Negativity Bias says is basically that our negative emotions are more powerful in our psyche than our positive emotions. We might be excited about going on vacation, but if we are worried it might rain, those negative feelings can outweigh the positive ones.

At FROM we spend a lot of time testing websites, mobile apps and other digital experiences with real end-users and we get to observe their emotional reactions first-hand. After watching hundreds of these tests, I would have to say that our research confirms this idea of negativity bias. Simply put, no matter how promising or worthwhile a site is when it starts to trigger negative reactions in users, they usually abandon it quickly, no matter how initially interested they may have been. Note there is an exception to this rule which we call the Bruce Springsteen Rule – perhaps showing our age. For many years the TicketMaster site was quite terrible and yet when the moment came that a new Bruce Springsteen concert opened up for sale, tens of thousands of people would flock to the site and frankly just suffer through the purchase experience in order to get those tickets. So if your site experience is the digital equivalent of a Bruce Springsteen ticket (Millennials, please substitute Justin Bieber), then you may have found a way to neutralize negativity bias. Otherwise, read on.

So what are these negative reactions we get from users? There are a variety of possibilities, but there are two primary emotional villains that lead the pack: confusion and frustration.

Confusion is usually the first emotion we see. A user begins perhaps looking for a product or researching a topic, but he/she doesn’t fully understand the interface, the results they are getting or the labeling or language used. They start to feel confused. Confusion is a harmful emotion because it tends to make people feel that they are at fault. They are perhaps too stupid to figure out how to use the site or app. You might think,” Well that’s better than them blaming us!” but in fact, it’s not. They say the best thing you can do to have a great first date with someone is to leave them feeling great about themselves, and so it goes with digital experiences. If a user feels they aren’t smart enough to figure out your site or app, they may not blame you, but they leave nevertheless, so the outcome is basically the same.

And by the way they may in fact subconsciously blame you for making them feel dumb.

So how to avoid confusion? Study users’ paths through the site via task analysis, as we do here at FROM. Anytime we test a site, even a very successful one, we always find many points of confusion. It’s a matter of basic hygiene: sites are constantly changing, and it’s hard to make sure that every tweak is totally clear to everyone. Doing quarterly or at least annual user tests to make sure you are aware of any confusion “bombs” that may have been planted on your site is just good business. Furthermore, confusion-related problems are often inexpensive to fix. Sometimes it’s simply about rewording a button or moving a call to action. Sometimes it’s about just removing a feature that’s causing more confusion than benefit.

The second emotional villain is frustration. When you are frustrated you aren’t feeling at all confused — generally, you know exactly what the site is supposed to do; it just isn’t doing it! Frustration can be triggered by site defects, slow performance, check out process that are more steps than the user feels they “should be,” policies that don’t give the user the outcome they want, or missing features that the user perceives “everybody else has” which may actually just mean that Uber and Amazon have them. It’s quite easy to frustrate users today as their expectations are so incredibly high. Creating frustration in digital users is super-damaging to your brand because many users create a meaning around the frustration which is that the brand just doesn’t care. Users believe that brands should know what they expect and that if they aren’t providing it, there can be only reason: they just aren’t bothering. This, of course, may be a completely erroneous conclusion… in our experience very often clients don’t realize the points in their customer experience that are creating frustration until we conduct the user tests that reveal these problems.

Frustration problems are often easy to fix, but sometimes they can be very challenging because they may stem from underlying technology issues that are expensive to remediate. Nevertheless, it’s essential to understand where these problems exist and gauge the impact they are having on your business results, so that you can make an informed decision about whether or when to invest in addressing them.

In our experience, sites that offer something of value and manage to avoid creating confusion or frustration for their visitors are winners. The first step to getting there is a user-research focused assessment so that you can face the reality of the emotional reactions you are creating. Once that is understood, a roadmap to improvement can be developed and results measured along the way.

This article originally appeared on the Howard Tiersky blog

Image Credits: Pixabay

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Don’t Slow Roll Your Transformation

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Don't Slow Roll Your Transformation

GUEST POST from Geoffrey A. Moore

Business pundits love to talk about transformation, and consultants drool at the opportunity to tap into a limitless budget, but the truth is, transformations suck.

At minimum, transformation consists of re-engineering your operating model while continuing to operate, with even greater disruption involved if you are revamping your business model at the same time. Now, if you are a privately held enterprise, you might be able to sell this to your board as a “pivot,” and indeed, in the venture world, there is some accommodation built in for such moves. Not so, however, for companies whose shares are publicly held. If this describes you, fasten your seatbelt and read on.

Transformations come with “J curves”—financial projections that have you swimming underwater for some considerable period before you emerge reborn on the other side. Public investors hate J curves. They also worry prospective customers, as well as ecosystem partners, not to mention your own employees. Only a VC loves a J curve, but their attention is on a younger generation.

Nonetheless, everyone understands there are situations where transformation is warranted. For public companies, the most common cause is when the entire franchise is under existential threat. A new technology paradigm is going to categorically obsolete the core franchise, as digital photography did to Kodak, as digital media did to BusinessWeek, as wireless telephony is doing to wireline. It was an existential threat that caused Microsoft to displace its back office software business with Azure’s cloud services, even though the gross margins of the latter were negative while the net margins of the former were stupendous. It was an existential threat that drove Lou Gerstner to reengineer IBM’s hardware-centric business model to focus on services and software. Failure to transform means dissolution of the enterprise. If you are to survive, there are times when you simply have to bite the bullet.

That said, you still have to confront the issue of time. Everyone understands that a transformation will take more than one year, but no one is willing to tolerate it taking three. That is, by the end of the second year you have to be verifiably emerging from the J curve, head out of water, able to breathe positive cash flow, or else you are likely to be written off. That means transformational initiatives should be planned to complete in seven quarters, plus or minus one. That’s the amount of time you can be in the ICU before you risk getting transferred to hospice care.

So, if a transformation is in your future, and you really cannot work around it, then start your planning with the end in mind and calendar that end for seven quarters out. Now, work backward to determine where you will have to be by each of the intervening quarters in order to meet your completion date. When you get back to the current quarter, expect to see you are already two or three quarters behind schedule (not fair, I know, but I already told you that transformations suck). Suppress panic, conduct triage, and start both your engines and the clock.

Final point: given the lack of time and the amount of risk involved, there is only one sensible way to approach a transformation. Prioritize it above everything else, and keep everyone focused on making the intermediate milestones until you are well and truly out of danger. Transformations are no joking matter. Most companies lose their way. Don’t let that be true of you and yours.

That’s what I think. What do you think?

Image Credit: Pixabay

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The Tool for Planning Your 2025 Changes – Flash Sale

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Wow! Exciting news for the new year!

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Growing Your Conversational Commerce Capability

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How to Optimize the Latest Major Digital Touchpoint

GUEST POST from Howard Tiersky

Conversational commerce means interacting with your customer in an automated dialog via voice or text.

Usage of voice-based conversational interfaces such as Alexa and Siri have been exploding for years. Meanwhile, over 100,000 active bots were created on FaceBook’s messenger platform during its first year several years ago.

“Digital” began to truly scale with the web, then expanded even further via apps and social. Is conversational commerce (CC) the next major touchpoint? Conversational commerce is defined as interacting with your customer in an automated dialog via voice or text. Based on our experience consulting large brands on the implementation of their digital innovations, and given trends on consumer adoption and technology-readiness, it is fair to say that we are at the dawn of the first wave of the broad implementation of conversational commerce.

For several years, IBM has been painting a fanciful picture of its Watson technology’s ability to digest volumes of information, understand questions, and provide truly insightful answers. Meanwhile, consumers are becoming more and more comfortable with dialog-style interactions via Siri, Google voice search, and Alexa.

In fact:

The number of commands (“skills”) that Alexa can respond has increased past 100,000
34 percent of all smartphone users say they turn to Siri and Google voice search at least weekly.

But conversational commerce does not necessarily have to involve voice recognition.

2017 represented the one-year anniversary of the launch of Facebook’s chatbots, which enable brands to engage in text-based automated interactions with their customers and audience. In 2017 its Messenger platform alone had already reached about 100,000 active bots, and a survey then found that nearly 80 percent of companies use or plan to use chatbots by 2020.

At the Shoptalk conference a few years ago, eBay President and CEO Devin Wenig announced the launch of eBay’s new chatbot called ShopBot, which advises customers on items they might like to buy via automated chat dialog.

This pattern makes sense, as we see that millennials — 38 percent of whom prefer texting as their number one form of interaction, according to a study from Think with Google — have elevated this type of communication to an art form.

Will Siri or SMS-like automated dialog with your brand become the next big consumer touchpoint? If so, what do you need to do to prepare?

The answer, as some of the stats above suggest, is that conversational commerce is poised to be a major and preferred interaction model for many future brand interactions.

The good news is that if your brand has built a reasonably flexible and integrated digital stack, it can often be quickly leveraged to enable high-value CC capabilities without requiring that you install “Deep Blue” in your data center.

Here are five key things to know about getting started with conversational commerce:

1. The Core of Conversational Commerce is Very Similar to Search.

If you already have a strong search platform that permits parametrization, you can use it to drive a key portion of your chat experience. When you tell eBay’s chatbot you are looking to buy a voice recorder; it asks you questions such as the size and memory capacity you need. These questions are simply the metadata parameters eBay has available for voice recorders. You can utilize the product metadata in your existing catalog to make your chatbot appear to ask smart questions, and even more importantly help the customer find what they need, but in reality, the results are very similar to what they would experience if they simply entered structured search queries.

Of course, not all queries involve the quest for a product. Some may be asking a question, such as about your return or cancellation policies, but this too is very similar to search. You can parse chat questions against your full-text index and return intelligent answers by, again, leveraging your search engine.

2. The Next Step of Conversational Commerce is About Enabling Transactions.

Once a customer has found what they are looking for, they may wish to buy, reserve, add to a wish list, or take some other action. Your chat flow needs to know when to pivot from searching to asking the customer to take action. In many cases, or in your initial releases, you may simply choose to branch to existing web screens to complete transactions, as eBay is doing with ShopBot. More sophisticated conversational commerce implementations allow the customer to take action via voice or text, such as Domino’s, which allows the customer to order a pizza by text.

3. In Text Conversations, You Generally Know Your Customer.

One of the advantages of most forms of conversational commerce, such as SMS or Facebook Messenger, is that your customer is identifiable. If the customer has a profile in your system, you can use this knowledge to make the conversational interaction simpler — and also smarter. Picking up again on our Domino’s example, when the customer texts them a pizza emoji, the bot matches their telephone number to its database and confirms that it will be placing the order with toppings based on their past preferences, and will deliver it to their home address on file. The customer will then have the opportunity to override any of these defaults if they are in the mood for Hawaiian pizza that day.

4. You Can Make the Language Parsing Easier by Giving Multiple-choice Options.

Many successful chatbots are more of a string of multiple-choice questions than a free-form dialog. This substantially reduces the challenge of “comprehending” the customer and furthermore reduces typing for users on mobile devices. Naturally, you will want to support customer-entered text strings, but a considerable number of interactions can be handled via a series of multiple-choice questions. In some ways, chat is similar to IVR systems at call centers, and can often use similar types of decision trees.

5. It Doesn’t Have to be Perfect.

There is still some novelty to automated interactions, so customers don’t expect them to be perfect. Furthermore, as with any digital platform, you have the opportunity to improve it over time iteratively. Siri has grown tremendously over the last few years in the range of queries it can handle.

A fantastic resource to help guide your prioritization of new capabilities are the chat logs themselves, which will give you a sense of the types of interactions that your customers are attempting that may not yet be supported by your platform. And in the meantime, as you become aware of such chat or voice requests, you can create short text responses to those categories of inquiries, letting the customer know what other touchpoints currently support that action. So if a customer, for example, uses a chatbot to check their account balance but then wants to transfer funds, and that is not yet supported via conversational commerce, you can supply the URL for the website or app and the toll-free number to call, so they know where to go next.

6. Develop a Core Conversational Engine, and Leverage it Across Many Different Touchpoints

It makes sense to invest in conversational commerce platforms and tie them to your existing catalog, customer data, business logic and transaction capabilities. In doing so, think of creating one central CC “engine” that will connect to a variety of conversational endpoints. To begin with, you may want to focus on enabling a chatbot on your website(s) and in your apps, and integrating with the Facebook chatbot API to allow customers to chat with your automated system via Messenger the same way they would chat with their friends. But in future iterations, it makes sense to support SMS, Skype, WeChat (if you do business in Asia), and possibly other similar platforms. Longer term, as Apple’s Siri, Google Voice, Microsoft’s Cortana, and Amazon’s Alexa continue to open up their APIs, the same conversational engine you created for text can be leveraged with relatively small modifications to support voice interactions.

Conversational commerce is already here, and most major brands have either implemented or are in some stage of planning around an implementation. You can probably leverage existing systems and data sets to create a reasonable starting point for conversational interaction without requiring sophisticated AI or language parsing. Over time, you can learn from your customers’ queries how they want to interact with you and evolve your conversational capabilities accordingly.

This article originally appeared on the Howard Tiersky blog

Image Credits: Pixabay

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Voting Closed – Top 40 Innovation Bloggers of 2024

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Happy Holidays!

For more than a decade I’ve devoted myself to making innovation insights accessible for the greater good, because I truly believe that the better our organizations get at delivering value to their stakeholders the less waste of natural resources and human resources there will be.

As a result, we are eternally grateful to all of you out there who take the time to create and share great innovation articles, presentations, white papers, and videos with Braden Kelley and the Human-Centered Change and Innovation team. As a small thank you to those of you who follow along, we like to make a list of the Top 40 Innovation Bloggers available each year!

Our lists from the ten previous years have been tremendously popular, including:

Top 40 Innovation Bloggers of 2015
Top 40 Innovation Bloggers of 2016
Top 40 Innovation Bloggers of 2017
Top 40 Innovation Bloggers of 2018
Top 40 Innovation Bloggers of 2019
Top 40 Innovation Bloggers of 2020
Top 40 Innovation Bloggers of 2021
Top 40 Innovation Bloggers of 2022
Top 40 Innovation Bloggers of 2023

Do you just have someone that you like to read that writes about innovation, or some of the important adjacencies – trends, consumer psychology, change, leadership, strategy, behavioral economics, collaboration, or design thinking?

Human-Centered Change and Innovation is now looking to recognize the Top 40 Innovation Bloggers of 2024.

It is time to vote and help us narrow things down.

The deadline for submitting votes is December 31, 2024 at midnight GMT.

The ranking will be done by me with influence from votes and nominations. The quality and quantity of contributions to this web site by an author will be a BIG contributing factor (through the end of the voting period).

You can vote in any of these three ways (and each earns points for them, so please feel free to vote all three ways):

Sending us the name of the blogger by @reply on twitter to @innovate
Adding the name of the blogger as a comment to this article’s posting on Facebook
Adding the name of the blogger as a comment to this article’s posting on our Linkedin Page (Be sure and follow us)

The official Top 40 Innovation Bloggers of 2024 will then be announced here in early January 2025.

Here are the people who received nominations this year along with some carryover recommendations (in alphabetical order):

Adi Gaskell – @adigaskell
Alain Thys
Alex Goryachev
Andy Heikkila – @AndyO_TheHammer
Annette Franz
Arlen Meyers – @sopeofficial
Art Inteligencia
Ayelet Baron
Braden Kelley – @innovate
Brian Miller
Bruce Fairley
Chad McAllister – @ChadMcAllister
Chateau G Pato
Chris Beswick
Chris Rollins
Dr. Detlef Reis
Dainora Jociute
Dan Blacharski – @Dan_Blacharski
Daniel Burrus – @DanielBurrus
Daniel Lock
David Burkus
Dean and Linda Anderson
Dennis Stauffer
Diana Porumboiu
Douglas Ferguson
Drew Boyd – @DrewBoyd
Frank Mattes – @FrankMattes
Geoffrey A Moore
Gregg Fraley – @greggfraley
Greg Satell – @Digitaltonto
Helen Yu
Howard Tiersky
Janet Sernack – @JanetSernack
Jeffrey Baumgartner – @creativejeffrey
Jeff Freedman – @SmallArmyAgency
Jeffrey Phillips – @ovoinnovation
Jesse Nieminen – @nieminenjesse
John Bessant
Jorge Barba – @JorgeBarba
Julian Birkinshaw – @JBirkinshaw
Julie Anixter – @julieanixter
Kate Hammer – @Kate_Hammer
Kevin McFarthing – @InnovationFixer
Leo Chan
Lou Killeffer – @LKilleffer
Manuel Berdoy

Mari Anixter- @MariAnixter
Maria Paula Oliveira – @mpaulaoliveira
Matthew E May – @MatthewEMay
Michael Graber – @SouthernGrowth
Mike Brown – @Brainzooming
Mike Shipulski – @MikeShipulski
Mukesh Gupta
Nick Jain
Nick Partridge – @KnewNewNeu
Nicolas Bry – @NicoBry
Nicholas Longrich
Norbert Majerus and George Taninecz
Pamela Soin
Patricia Salamone
Paul Hobcraft – @Paul4innovating
Paul Sloane – @paulsloane
Pete Foley – @foley_pete
Rachel Audige
Ralph Christian Ohr – @ralph_ohr
Randy Pennington
Richard Haasnoot – @Innovate2Grow
Robert B Tucker – @RobertBTucker
Robyn Bolton – @rm_bolton
Saul Kaplan – @skap5
Shep Hyken – @hyken
Shilpi Kumar
Scott Anthony – @ScottDAnthony
Scott Bowden – @scottbowden51
Shelly Greenway – @ChiefDistiller
Soren Kaplan – @SorenKaplan
Stefan Lindegaard – @Lindegaard
Stephen Shapiro – @stephenshapiro
Steve Blank
Steven Forth – @StevenForth
Tamara Kleinberg – @LaunchStreet
Teresa Spangler – @composerspang
Tom Koulopoulos – @TKspeaks
Tullio Siragusa
Yoram Solomon – @yoram

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We’re curious to see who you think is worth reading!

Arm Yourself for Successful Change in 2025

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Wow! Exciting news for the holidays!

My publisher is having a holiday flash sale that will allow you to get the hardcover or the digital version (eBook) of my latest best-selling book Charting Change for 30% off to slide nicely into the Christmas stocking of someone you love or to arm yourself with the very best tools for 2025 change planning!

When you buy the hardcover version of my book directly from the publisher you get FREE SHIPPING worldwide!

Beat the 70% failure rate for change programs
Quickly visualize, plan and execute change efforts
Deliver projects and change efforts on time
Accelerate implementation and adoption
Get valuable tools for a low investment

You must go to SpringerLink for this Cyber Sale:

The offer is valid until December 31, 2024 only using code HOL30

Click here to get this deal using code HOL30

BONUS OFFER: Until the end of December 31, 2024 you can also save 30% off the regular price of a Change Planning Toolkit™ v13 – Commercial License (Annual), a $369.99 value available for $99.99/year per user, meaning that until the end of the year you can get access to the 70+ tools for all of 2025 for $69.99 using the code HOL30.

ADDITIONAL BONUS: For a limited time you can also get a hardcover copy of my first best-selling book Stoking Your Innovation Bonfire on Amazon at a nice discount off the cover price – currently 50% OFF while supplies last!

Five Key Digital Transformation Challenges

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Five Key Digital Transformation Challenges

GUEST POST from Howard Tiersky

Each year, I sit through dozens of hours of research sessions with consumers.

If there is one theme, I hear consistently it’s that consumers expect the brands they engage with to provide a flawless digital experience in their interactions. And though that’s a notion that is consistent across all age groups, it’s a theme we hear unanimously from millennials. It only takes a quick look around various industries to see that the companies that are delivering a strong, digitally-centric value proposition make up a substantial portion of the growth.

Meanwhile, we’ve recently witnessed that many legacy brands are shrinking (i.e., The Limited) or going out of business entirely (i.e., Sports Authority). The bottom line is that companies born before the digital age must substantially transform in order to remain relevant. As Jack Welch said in the year 2000 “If the rate of change on the outside exceeds the rate of change on the inside, the end is near.” Many great brands today are in just this situation.

It takes five miles for an aircraft carrier to turn itself around 180 degrees. If you are on that aircraft carrier while it’s engaging in that ‘quick turn,’ you better hold on to something solid because you’ll soon be tilting at a 30-degree angle. Many large companies are not comfortable with making the difficult and rapid hard left required to align themselves with how the world has changed.

Being in the business of helping companies through their digital transformations, I have observed that many of the companies that struggle digitally do employ super-sharp and visionary executives who see what needs to be done. However, those executives face massive challenges when it comes to enacting the kinds of changes that are necessary in order to make that digital leap. Most of the work I do involves partnering with heroic innovators trying to change large enterprises from within. As a result, I have an insider’s perspective on the biggest challenges these companies face when taking on transformation projects and, in fact, spend most of my time working to try to overcome them.

Based on first-hand experience, here are the top five challenges to digital transformation. If you are facing any of these challenges, the list below may, if nothing else, give you comfort that you are not alone.

1. Organizational Resistance to Change

My rough guesstimate is that perhaps 10-15% of people in the world love change. They are excited by constantly having new challenges to tackle and new things to learn. But for the other 85-90%, change equals pain. It means uncertainty, a challenge to their role or identity, and, worst-case scenario, possibly the loss of a job and their family’s security. After all, once you’ve got a good thing going, its natural not to want to see your apple cart overturned. Digital transformation, by its very nature, upsets a lot of apple carts.

However the truth is that in times of change, not changing is far more risky than taking the leap. It just doesn’t always feel that way.

The consequences of resistance to change manifest itself in a myriad of ways. Digital projects vital to a company’s future success can have trouble getting funded, resourced, or marketed. These projects may be modified so as not to threaten retail or partner brands. They are held back by concerns about cannibalizing other revenue sources. They are asked to justify ROI to an unreasonable level of certainty. They are sent through endless legal reviews.

Kodak invented the digital camera, but it was the internal resistance to change that led the company to bury it because it threatened the company’s legacy film business. Imagine what Kodak could have been had it done what Bell Atlantic did when it realized how bleak the future of landlines looked — it became Verizon, which is now a dominant figure in the broadband, wireless and cable television industries. Did mobile phones decimate the landline business? Yep. But Bell Atlantic “protected” itself by accepting that change was on the horizon, and transformed by making the difficult decisions required to adapt to that change.

The great architect and innovator Matt Taylor once said, “The future is rationale only in hindsight.” When Bell Atlantic was making those critical decisions that fundamentally transformed what it was as a company, the outcome was far from clear or free of risk.

2. Lack of a Clear Vision for a Digital Customer Journey

Companies that succeed in creating a digital customer value proposition don’t get there by accident. They develop a clear vision of how they will meet their customers’ digital needs, set objectives against that vision, and execute — often over the course of multiple years. Often times, companies that are not succeeding simply haven’t painted a clear picture of what they want — or need — to be when they digitally “grow up.” While clarifying this vision doesn’t get you there by itself, in fact its only one of many steps, not having a vision is like going on a road trip without a destination. It’s always possible you could stumble into something great, but probably not.

Companies still in the dark need to do four things:

Take stock of your assets – your brand, your customers, your intellectual property, and the strengths and talents of your organization.
Study your market to understand your customers’ unmet needs and what your competitors are doing.
Be on top of technology trends, which includes keeping apprised of relevant emerging technology and shifts in consumer behavior as it pertains to technology.
Establish processes designed to generate portfolios of potential ideas for the future state of the customer journey. These processes should allow your company to create business hypotheses and vet and test them via customer research. In turn, new ideas can be aligned to the vision for how the customer of the future should interact with the brand, iterating along the way as more learnings come in.

3. Ineffective Gathering and Leveraging of Customer Data

The root of digital success is customer data. There’s more to the tree than the root, to be sure, but whether it’s Facebook, Amazon, Netflix or Uber, digital success stories have the effective gathering, storing and leveraging of customer data at the core. Many organizations today have a myriad of siloed systems containing various scraps of data about customer interactions, but no clear way to pull them together. Others have petabytes of data centralized in an information warehouse that they may use for reporting. However, they haven’t figured out what to do with all that data in a manner that provides value to the customer.

Fixing this in the most efficient way often requires starting fresh, to a degree. Determine what are the ten to fifteen key attributes of a customer that would allow us to serve and sell to them more effectively. Of course, these attributes are different depending on the sector that a company operates in, but once they have been identified, the key is to figure out how to most effectively gather and store that data in a centralized place that can be easily accessed via any touch point.

When you take a simplistic approach to creating value at the outset, you are then in a good position to start looking at more complex pockets of customer data and considering how some of that data might enable you to enhance the experience further and how to link it in.

4. Inflexible Technology Stack and Development Processes

Successful digital experiences are achieved through iteration. Successful digital properties almost always iterate to success via the “test and learn” approach — where new features are being regularly added, measured, adjusted and pruned, based on user feedback and usage data. However, it is impossible to take this approach if your development process involves quarterly release cycles. Leveraging agile processes and technologies that support frequent, if not continuous, integration and product releases are critical behaviors that lead to effective digital results.

Additionally, part of the iteration process involves the need to adjust workflows, business rules, content presentation, and (potentially) leverage data in different ways than were originally envisioned when systems were built. Companies trying to build flexible and elegant digital experiences on top of out-dated technology stacks are tilting at windmills. You don’t necessarily have to discard the mainframe, but modern enterprises must make their data read/write accessible via robust and secure APIs, and provide access to their business logic in a way that’s independent of presentation layers. If your core systems were designed more than five years ago, they probably need major refactoring in order to support effective digital execution.

5. Married to Legacy Business Model

Lastly, real success in digital is rarely about providing the exact same products and services, just through a digital pipe. Netflix shifted from DVDs to streaming. Uber created the world’s largest car service without buying any vehicles or hiring any drivers, and similarly, eBay and Alibaba created the world’s biggest retail channels without buying any inventory.

Companies that successfully “cross the chasm” to digital effectiveness often discover they need to provide for free what they used to charge for, sell as a subscription what used to be “a la carte,” monetize via advertising things that used to be paid for in other ways, and re-think how they derive revenue from the value that they create. Those that do so flexibly can often find that the adoption of a digital strategy offers more scale, revenue and profit than the legacy approach, but it takes experimentation, an assumption of risk, and — to be blunt — some failure along the way. Whereas this approach is widely accepted among startups, it is one that the management and investors in mature companies generally fear. Yet, this is the gauntlet they must run in order to achieve digital success.

This article originally appeared on the Howard Tiersky blog

Image Credits: FreePik

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Human-Centered Change and Innovation

Innovation, change and transformation thought leadership, lovingly curated by Braden Kelley

Category Archives: Digital Transformation

Why CIOs Should Co-Lead Customer Experience

1. Art of the Possible

2. Understanding Level of Effort and Dependencies for Prioritization and Planning

3. Measuring CX

4. True End-to-End Perspective

5. Changing the Way IT Operates

Four Deadly Business Myths

Myth #1: We Live In A VUCA Business Environment

Myth #2: Empathy Is Absolution

Myth #3: Diversity Equity And Inclusion Is About Enforcing Rules

Myth #4: People Are Best Motivated Through Carrots And Sticks

The Two Main Opponents of Digital Success

Don’t Slow Roll Your Transformation

Top 100 Innovation and Transformation Articles of 2024

The Tool for Planning Your 2025 Changes – Flash Sale

Growing Your Conversational Commerce Capability

How to Optimize the Latest Major Digital Touchpoint

1. The Core of Conversational Commerce is Very Similar to Search.

2. The Next Step of Conversational Commerce is About Enabling Transactions.

3. In Text Conversations, You Generally Know Your Customer.

4. You Can Make the Language Parsing Easier by Giving Multiple-choice Options.

5. It Doesn’t Have to be Perfect.

6. Develop a Core Conversational Engine, and Leverage it Across Many Different Touchpoints

Voting Closed – Top 40 Innovation Bloggers of 2024

Arm Yourself for Successful Change in 2025

Five Key Digital Transformation Challenges

1. Organizational Resistance to Change

2. Lack of a Clear Vision for a Digital Customer Journey

3. Ineffective Gathering and Leveraging of Customer Data

4. Inflexible Technology Stack and Development Processes

5. Married to Legacy Business Model