Category Archives: Technology

The State of Customer Experience and the Contact Center

The State of Customer Experience and the Contact Center

GUEST POST from Shep Hyken

Oh, what a difference a year makes. A few months ago I traveled to Las Vegas to attend the Customer Contact Week (CCW), the largest conference and trade show in the contact center industry. For the past several years, the big discussion has centered on artificial intelligence (AI), and that continues, but Customer Experience (CX) is also moving into the spotlight. AI and natural language models can give customers an almost human-like experience when they have a question or complaint. However, no surprise, some companies do it better than others.

First, all the hype around AI is not new. AI has been in our lives for decades, just at a much simpler level. How do you think Outlook and other email companies recognize that an email is spam and belongs in the junk/spam folder? Of course, it’s not 100% perfect, and neither are today’s best AI programs.

Many of us use Siri and Alexa. That’s AI. And as simple as that is, it’s obviously more sophisticated when you apply it to customer support and CX.

Let’s go back 10 years ago when I attended the IBM Watson conference in Las Vegas. The big hype then was around AI. There were some incredible cases of AI changing customer service, sales and marketing, not to mention automated processes. One of the demonstrations during the general session showcased AI’s stunning capability. Here’s what I saw:

A customer called the contact center. While the customer service agent listened to the customer, the computer (fueled by AI) listened to the conversation and fed the agent answers without the agent typing the questions. In addition, the computer informed the agent how long the customer had been doing business with the company, how often they made purchases, what products they had bought and more. The computer also compared this customer to others who had the same questions and suggested the agent answer those questions. Even though the customer didn’t yet know to ask them, at some point in the future, they would surely be calling back to do so.

That demonstration was a preview of what we have today. One big difference is that implementing that type of solution back then could have cost hundreds of thousands of dollars, if not more than a million. Today, that technology is affordable to almost any company, costing a fraction of what it cost back then (as in just a few thousand dollars).

Voice Technology Gets Better

Less than two years ago, ChatGPT was introduced to the world. Similar technologies have been developed. The capability continues to improve at an incredibly rapid pace. The response from an AI-fueled chatbot is lightning fast. Now, the technology is moving to voice. Rather than type a question for the chatbot, you talk, and it responds in a human-like voice. While voice technology has existed for years, it’s never been this good. Google introduced voice technology that seemed almost human-like. The operative word here is almost. As good as it was, people could still sense they weren’t talking to a human. Today, the best systems are human-like, not almost human-like. Think Alexa and Siri on steroids.

Foreign Accents Are Disappearing

We’ve all experienced calling customer support, and an offshore customer service agent with a heavy accent answers the call. Sometimes, it’s nearly impossible to understand the agent. New technologies are neutralizing accents. A year ago, the software sounded a little “digital.” Today, it sounds almost perfect.

Why Customers Struggle with AI and Other Self-Service Solutions

As far as these technologies have come, customers still struggle to accept them. Our customer service research (sponsored by RingCentral) found that 63% of customers are frustrated by self-service options, such as ChatGPT and similar technologies. Furthermore, 56% of customers admit to being scared of these technologies. Even though 32% of the customers surveyed said they had successfully resolved a customer service issue using AI or ChatGPT-type technologies, it’s not their top preference as 70% still choose the phone as their first level of support. Inconsistency is part of the problem. Some companies still use old technology. The result is that the customer experience varies from company to company. In other words, customers don’t know whether the next time they experience an AI solution if it will be good or not. Inconsistency destroys trust and confidence.

Companies Are Investing in Creating a Better CX

I’ve never been more excited about customer service, CX and the contact center. The main reason is that almost everything about this conference was focused on creating a better experience for the customer. The above examples are just the tip of the iceberg. Companies and brands know what customers want and expect. They know the only way to keep customers is to give them a product that works with an experience they can count on. Price is no longer a barrier as the cost of some of these technologies has dropped to a level that even small companies can afford.

Customer Service Goes Beyond Technology: We Still Need People!

This article focused on the digital experience rather than the traditional human experience. But to nail it for customers, a company can’t invest in just tech. It must also invest in its employees. Even the best technology doesn’t always get the customer what they need, which means the customer will be transferred to a live agent. That agent must be properly trained to deliver the experience that gets customers to say, “I’ll be back.”

Image Credits: Pexels, Shep Hyken

This article originally appeared on Forbes.com

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Success is a Hardship Too

Success is a Hardship Too

GUEST POST from Mike Shipulski

Everything has a half-life, but we don’t behave that way. Especially when it comes to success. The thinking goes – if it was successful last time, it will be successful next time. So, do it again. And again. It is an efficient strategy – the heavy resources to bring it to life have already been spent. And it is predictable – the same customers, the same value proposition, the same supply base, the same distribution channel, and the same technology. And it is dangerous.

Success is successful right up until it isn’t. It will go away. But it will take time. A successful product line will not fall off the face of the earth overnight. It will deliver profits year-over-year and your company will come to expect them. And your company will get hooked on the lifestyle enabled by those profits. And because of the addiction, when they start to drop off the company will do whatever it takes to convince itself all is well. No need to change. If anything, it is time to double-down on the successful formula.

Here’s a rule: When your successful recipe no longer brings success, it’s not time to double-down.

Success’ decline will be slow, so you have time. But creating a new recipe takes a long time, so it is time to declare that the decline has already started. And it is time to learn how to start work on the new recipe.

Hardship 1 – Allocate resources differently. The whole company wants to spend resources on the same old recipes, even when told not to. It is time to create a funding stream that is independent of the normal yearly planning cycle. Simply put, the people at the top have to reallocate a part of the operating budget to projects that will create the next successful platform.

Hardship 2 – Work differently. The company is used to polishing the old products and they don’t know how to create new ones. You need to hire someone who can partner with outside companies (likely startups), build internal teams with a healthy disrespect for previous success, create mechanisms to support those teams and teach them how to work in domains of high uncertainty.

Hardship 3 – See value differently. How do you provide value today? How will you provide value when you cannot do it that way? What is your business model? Are you sure that’s your business model? Which elements of your business model are immature? Are you sure? What is the next logical evolution of how you go about your business? Hire someone to help you answer those questions and create projects to bring the solutions to life.

Hardship 4 – Measure differently. When there is no customer, no technology and no product, there is no revenue. You must learn how to measure the value of the work (and the progress) with something other than revenue. Good luck with that.

Hardship 5 – Compensate differently. People that create something from nothing want different compensation than people that do continuous improvement. And you want to move quickly, violate the status quo, push through constraints and create whole new markets. Figure out the compensation schemes that give them what they want and helps them deliver what you want.

This work is hard, but it’s not impossible. But your company doesn’t have all the pieces to make it happen. Don’t be afraid to look outside your company for help and partnership.

Image credit: Pixabay

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Components of a Good Digital Strategy

Components of a Good Digital Strategy

GUEST POST from Howard Tiersky

If I told you I had a document in my hand that was the new digital strategy for your company, what would you expect it to contain?

A list of projects? A “mission” statement? A technology vision? A competitive market analysis? A financial forecast?

One of the problems with the label “digital strategy” is that there’s not a common understanding of what it actually means or should contain. Naturally, the needs vary by company, but what if I said I had one menu for a Chinese restaurant and one for an Italian restaurant? Of course, there would be some differences, but there would also be some similarities: both would contain a list of foods you can order and their prices.

While we know what to expect to see in a menu, what should we expect to find in a digital strategy?

We develop digital strategies for companies from media to retail to financial services, and we use a ten-chapter outline for our digital strategy documents. Starting from this point, we often customize, and I’d encourage you to do that as well. Consider this a cheat-sheet that, if it works for your organization, can form the basis for your digital strategy.

Chapter One: Our Current Situation

Describe your company’s current situation vis a vis digital. Outline the digital touchpoints that currently exist, how recently they have been “remodeled,” how you measure their performance and what feedback you receive from both customers and stakeholders. Neither exaggerate the problems nor sweep them under the rug. The idea is to present a clear, objective, and fact-based description of the current state. Ideally, cite specific stats such as conversion, ad revenue, usability testing results or other data-driven “evidence” for your position. Also, describe any obvious gaps in your digital landscape. If you have clarity on the reasons for some of the problems or gaps (technical issues, business process issues, etc.), then state these as well.

Chapter Two: The Customer and Competitive Landscape

Describe your customer segments succinctly. What is understood about their current needs? How have they changed? Ideally, cite evidence from market research. In particular, how have their channel/touchpoint preference and expectations been evolving? What does that suggest about what your brand needs to do to stay relevant? If you have data to support it, describe how the current digital ecosystem for your company impacts your customer’s perception, behavior and purchase decisions (either positively or negatively — you may have examples of both). Now take a look at competitors. Your customers are evaluating you against your competitive set; what are they offering regarding a digital experience? How does it differ from what your brand is doing? What success metrics do you have available to indicate how successful competitive efforts are? (remember not everything your competitor is doing differently is necessarily successful). Remember to look not just at your traditional large competitors, but also at smaller competitors who may not be taking a significant market share (yet) but who might be more nimble or creative. Look also at “comparative” brands. If you are a hotel, what are airlines doing? What is Uber or Amazon doing? And how are their latest innovations both creating new expectations your customers have for you and also highlighting opportunities for your industry to do something similar?

Chapter Three: Trends

Chapters One and Two describe the current state. Chapter Three is your space to forecast the future. What trends are likely to impact your customer and your industry over the next few years? I suggest focusing on a 2-3 year time horizon. In today’s fast-moving world trying to forecast farther than that is too inaccurate. What kind of trends should you focus on? Certainly focus on digital trends, such as the shift to mobile or other digital technologies that may be relevant to your industry (wearables, VR, AR, chatbots, etc.). But also focus on trends that may not be inherently digital but which may have a significant impact in your industry over the next few years. These could be growth in China, the different priorities of the millennial generation, etc.

Chapter Four: Our Assets

Nothing in the outline of the first three chapters is inherently good news or bad news — it’s just a journalistic perspective on your brand, your customers, and competitors- where they are today and where they are going. It’s not uncommon for it to be an inventory of all the ways you are behind and that can be a bit of a downer. This chapter is your opportunity to remind the reader of any untapped assets you may have that might be able to help you leap ahead. What kind of asset should you describe? Here are some ideas. Consider which apply in your situation:

  1. Your brand — How is your brand viewed by customers? Even if you are behind the curve in digital, it takes a long time to build a trusted brand. That’s worth a lot, and if you catch up, that brand may be a huge competitive weapon even against companies who seem to be ahead of you today.
  2. Your content — Perhaps you have a backlog of content that is not being fully leveraged. A new digital strategy may enable you to tap value that is currently latent.
  3. Technology — You might have some proprietary technology that, if connected to a stronger digital touchpoint, could enable you to bring capabilities to the market that would be difficult for others to match.
  4. Your people and their skills — Your organization may be uniquely good at something. Perhaps there is a way to leverage that strength. Or you may have specific individuals whose talents aren’t fully leveraged but who could make a major difference if given the opportunity to drive new digital strategies.

Your scale, financial resources, partnership relationships, network of stores, licensed IP, etc. Companies have many other assets, far too many to list here. Try to inventory everything you have to work with and consider which other assets might have a place in developing a strategy that provides sustainable competitive differentiation.

Chapter Five: The Future Customer Journey

Chapter Five is where you describe your vision of the future. You have been setting up the rationale for change in the previous four chapters; this is where you propose your solution. Describe how the customer will interact with your brand differently in the future — what changes will be made to the different touchpoints? How does their journey play out from initial introduction to your brand, through the phases of initial interest and research, through their purchase decisions, experience of your product or service, problem resolution, and future re-purchase? Describe your customer, their situation, and their priorities and tell a compelling story that rings the intuitive bell of the user that this future journey will be both far better for the customer and also lead to better business outcomes for the brand. Support the alignment with customer needs via research data where available. One format for describing the customer journey is a roadmap.

However you describe it, your strategy should align with the three key priorities of a successful digital business.

Chapter Six: Money and Business Model

If you have done a good job in Chapter Five, you now have your reader or listener (if it’s a presentation) thinking, “Sounds great, but how much is this going to cost??” Chapter Six is where you lay out three things — roughly what implementing this strategy will cost, what your projections are for financial return, and how the business model under the new strategy changes, if at all. Clarity around investment and returns is what separates digital strategies that sound good from ones that actually get done. After all, an ambitious digital strategy for a major brand is likely to be a substantial investment. Most of the time those at the CFO and CEO level making investment decisions of hat scale are not doing it because of the inherent “good” of digital, but because they expect a return that justifies the decision. You must help them see your story in the kind of financial language that they use to make all of their other decisions. Be sure to describe not only the total budget but how much you anticipate will be capital vs operating budget and what the cash flow timing looks like. You’ll want someone from your finance department to be involved in modeling this in spreadsheet form.

Chapter Seven: Technology

It’s quite likely that your new strategy will be closely tied to technology. In Chapter Seven describe the technologies that are needed. It’s not essential to describe hardcore “tech” details or reference specific software tools. Rather, the idea here is to describe the key requirements you will have of technology to achieve the strategy.

Chapter Eight: Business Process and Organization

Often a substantial digital transformation will change the way you do business. If so, then no doubt you will need to reconsider various business processes or parts of your organizational structure. Chapter Eight should describe the types of changes that may be needed.

Chapter Nine: Timeline and Challenges

In Chapter Nine, you lay out a detailed quarter by quarter plan of how you intend to proceed. In addition, be upfront about the assumptions, risks and anticipated challenges your strategy will face. It may seem like it would be better to keep quiet about possible risks, but actually, the opposite is true for two reasons. First, it adds credibility to your plan and process to show you’re realistic about the possible roadblocks and are already thinking about how to avoid them. And second, when you get funded, and your project actually does encounter challenges it won’t be a shock to your stakeholders. Most major transformations encounter a lot of twists and turns, and you need not only the initial support but the sustained support of your key stakeholders. Having a frank conversation about the things that could go wrong in advance is planting the seeds for their support when you need it in the future.

Chapter Ten: The Cost of Failure

The last chapter addresses the question of what if we don’t do it? Or what if we do it half-heartedly? Digital transformation projects inevitably involve risks. And really wouldn’t we all rather avoid risk? This last chapter is the time to describe the risks of not proceeding or not fully proceeding. How will this impact sales? How will it impact your brand? If you just delay a year or two and then proceed, how will that impact your ability to catch up to the market?

So there you are: ten chapters of your digital strategy (or at least a starting point). One final suggestion is to make the development of your strategy an inclusive process. These days an effective digital strategy touches every part of an organization, and people can be quite resistant to an outside “digital team” deciding their fate for them. Furthermore, I suggest you create an inclusive process around the finalization of your digital strategy outline before you begin the process of developing the strategy. To the point I began with, there is a risk that when you come back to your CMO or your CEO with “The Digital Strategy” they may be surprised by what is and what isn’t covered. You can use this outline as a starting discussion point to gauge their expectations and jointly agree on what the strategy actually needs to address so that the scope and structure of the strategy meets their expectations and you can focus on the substance. Good luck strategizing and as always let us know if we can be of any help!

This article originally appeared on the Howard Tiersky blog

Image Credits: FreePik

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Sustainability Requires Doing Less Not More

GUEST POST from Mike Shipulski

If you use fewer natural resources, your product costs less.

If you use recycled materials, your product costs less.

If you use less electricity, your product costs less.

If you use less water to make your product, your product costs less.

If you use less fuel to ship your product, your product costs less.

If you make your product lighter, your product costs less.

If you use less packaging, your product costs less.

If you don’t want to be environmentally responsible because you think it’s right, at least do it to be more profitable.

Image credit: Pexels

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28 Things I Learned the Hard Way

28 Things I Learned the Hard Way

GUEST POST from Mike Shipulski

  1. If you want to have an IoT (Internet of Things) program, you’ve got to connect your products.
  2. If you want to build trust, give without getting.
  3. If you need someone with experience in manufacturing automation, hire a pro.
  4. If the engineering team wants to spend a year playing with a new technology, before the bell rings for recess ask them what solution they’ll provide and then go ask customers how much they’ll pay and how many they’ll buy.
  5. If you don’t have the resources, you don’t have a project.
  6. If you know how it will turn out, let someone else do it.
  7. If you want to make a friend, help them.
  8. If your products are not connected, you may think you have an IoT program, but you have something else.
  9. If you don’t have trust, you have just what you earned.
  10. If you hire a pro in manufacturing automation, listen to them.
  11. If Marketing has an optimistic sales forecast for the yet-to-be-launched product, go ask customers how much they’ll pay and how many they’ll buy.
  12. If you don’t have a project manager, you don’t have a project.
  13. If you know how it will turn out, teach someone else how to do it.
  14. If a friend needs help, help them.
  15. If you want to connect your products at a rate faster than you sell them, connect the products you’ve already sold.
  16. If you haven’t started building trust, you started too late.
  17. If you want to pull in the delivery date for your new manufacturing automation, instead, tell your customers you’ve pushed out the launch date.
  18. If the VP knows it’s a great idea, go ask customers how much they’ll pay and how many they’ll buy.
  19. If you can’t commercialize, you don’t have a project.
  20. If you know how it will turn out, do something else.
  21. If a friend asks you twice for help, drop what you’re doing and help them immediately.
  22. If you can’t figure out how to make money with IoT, it’s because you’re focusing on how to make money at the expense of delivering value to customers.
  23. If you don’t have trust, you don’t have much.
  24. If you don’t like extreme lead times and exorbitant capital costs, manufacturing automation is not for you.
  25. If the management team doesn’t like the idea, go ask customers how much they’ll pay and how many they’ll buy.
  26. If you’re not willing to finish a project, you shouldn’t be willing to start.
  27. If you know how it will turn out, it’s not innovation.
  28. If you see a friend that needs help, help them ask you for help.

Image credit: Pixabay

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Everyone Clear Now on What ChatGPT is Doing?

Everyone Clear Now on What ChatGPT is Doing?

GUEST POST from Geoffrey A. Moore

Almost a year and a half ago I read Stephen Wolfram’s very approachable introduction to ChatGPT, What is ChatGPT Doing . . . And Why Does It Work?, and I encourage you to do the same. It has sparked a number of thoughts that I want to share in this post.

First, if I have understood Wolfram correctly, what ChatGPT does can be summarized as follows:

  1. Ingest an enormous corpus of text from every available digitized source.
  2. While so doing, assign to each unique word a unique identifier, a number that will serve as a token to represent that word.
  3. Within the confines of each text, record the location of every token relative to every other token.
  4. Using just these two elements—token and location—determine for every word in the entire corpus the probability of it being adjacent to, or in the vicinity of, every other word.
  5. Feed these probabilities into a neural network to cluster words and build a map of relationships.
  6. Leveraging this map, given any string of words as a prompt, use the neural network to predict the next word (just like AutoCorrect).
  7. Based on feedback from so doing, adjust the internal parameters of the neural network to improve its performance.
  8. As performance improves, extend the reach of prediction from the next word to the next phrase, then to the next clause, the next sentence, the next paragraph, and so on, improving performance at each stage by using feedback to further adjust its internal parameters.
  9. Based on all of the above, generate text responses to user questions and prompts that reviewers agree are appropriate and useful.

OK, I concede this is a radical oversimplification, but for the purposes of this post, I do not think I am misrepresenting what is going on, specifically when it comes to making what I think is the most important point to register when it comes to understanding ChatGPT. That point is a simple one. ChatGPT has no idea what it is talking about.

Indeed, ChatGPT has no ideas of any kind — no knowledge or expertise — because it has no semantic information. It is all math. Math has been used to strip words of their meaning, and that meaning is not restored until a reader or user engages with the output to do so, using their own brain, not ChatGPT’s. ChatGPT is operating entirely on form and not a whit on content. By processing the entirety of its corpus, it can generate the most probable sequence of words that correlates with the input prompt it had been fed. Additionally, it can modify that sequence based on subsequent interactions with an end user. As human beings participating in that interaction, we process these interactions as a natural language conversation with an intelligent agent, but that is not what is happening at all. ChatGPT is using our prompts to initiate a mathematical exercise using tokens and locations as its sole variables.

OK, so what? I mean, if it works, isn’t that all that matters? Not really. Here are some key concerns.

First, and most importantly, ChatGPT cannot be expected to be self-governing when it comes to content. It has no knowledge of content. So, whatever guardrails one has in mind would have to be put in place either before the data gets into ChatGPT or afterward to intercept its answers prior to passing them along to users. The latter approach, however, would defeat the whole purpose of using it in the first place by undermining one of ChatGPT’s most attractive attributes—namely, its extraordinary scalability. So, if guardrails are required, they need to be put in place at the input end of the funnel, not the output end. That is, by restricting the datasets to trustworthy sources, one can ensure that the output will be trustworthy, or at least not malicious. Fortunately, this is a practical solution for a reasonably large set of use cases. To be fair, reducing the size of the input dataset diminishes the number of examples ChatGPT can draw upon, so its output is likely to be a little less polished from a rhetorical point of view. Still, for many use cases, this is a small price to pay.

Second, we need to stop thinking of ChatGPT as artificial intelligence. It creates the illusion of intelligence, but it has no semantic component. It is all form and no content. It is a like a spider that can spin an amazing web, but it has no knowledge of what it is doing. As a consequence, while its artifacts have authority, based on their roots in authoritative texts in the data corpus validated by an extraordinary amount of cross-checking computing, the engine itself has none. ChatGPT is a vehicle for transmitting the wisdom of crowds, but it has no wisdom itself.

Third, we need to fully appreciate why interacting with ChatGPT is so seductive. To do so, understand that because it constructs its replies based solely on formal properties, it is selecting for rhetoric, not logic. It is delivering the optimal rhetorical answer to your prompt, not the most expert one. It is the one that is the most popular, not the one that is the most profound. In short, it has a great bedside manner, and that is why we feel so comfortable engaging with it.

Now, given all of the above, it is clear that for any form of user support services, ChatGPT is nothing less than a godsend, especially where people need help learning how to do something. It is the most patient of teachers, and it is incredibly well-informed. As such, it can revolutionize technical support, patient care, claims processing, social services, language learning, and a host of other disciplines where users are engaging with a technical corpus of information or a system of regulated procedures. In all such domains, enterprises should pursue its deployment as fast as possible.

Conversely, wherever ambiguity is paramount, wherever judgment is required, or wherever moral values are at stake, one must not expect ChatGPT to be the final arbiter. That is simply not what it is designed to do. It can be an input, but it cannot be trusted to be the final output.

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

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Innovation is Combination

Silicon Valley’s Innovator’s Dilemma – The Atom, the Bit and the Gene

Innovation is Combination

GUEST POST from Greg Satell

Over the past several decades, innovation has become largely synonymous with digital technology. When the topic of innovation comes up, somebody points to a company like Apple, Google or Meta rather than, say, a car company, a hotel or a restaurant. Management gurus wax poetically about the “Silicon Valley way.”

Of course, that doesn’t mean that other industries haven’t been innovative. In fact, there are no shortage of excellent examples of innovation in cars, hotels, restaurants and many other things. Still, the fact remains that for most of recent memory digital technology has moved further and faster than anything else.

This has been largely due to Moore’s Law, our ability to consistently double the number of transistors we’re able to cram onto a silicon wafer. Now, however, Moore’s Law is ending and we’re entering a new era of innovation. Our future will not be written in ones and zeros, but will be determined by our ability to use information to shape the physical world.

The Atom

The concept of the atom has been around at least since the time of the ancient Greek philosopher Democritus. Yet it didn’t take on any real significance until the early 20th century. In fact, the paper Albert Einstein used for his dissertation helped to establish the existence of atoms through a statistical analysis of Brownian motion.

Yet it was the other papers from Einstein’s miracle year of 1905 that transformed the atom from an abstract concept to a transformative force, maybe even the most transformative force in the 20th century. His theory of mass-energy equivalence would usher in the atomic age, while his work on black-body radiation would give rise to quantum mechanics and ideas so radical that even he would refuse to accept them.

Ironically, despite Einstein’s reluctance, quantum theory would lead to the development of the transistor and the rise of computers. These, in turn, would usher in the digital economy, which provided an alternative to the physical economy of goods and services based on things made from atoms and molecules.

Still, the vast majority of what we buy is made up of what we live in, ride in, eat and wear. In fact, information and communication technologies only make up about 6% of GDP in advanced countries, which is what makes the recent revolution in materials science is so exciting. We’re beginning to exponentially improve the efficiency of how we design the materials that make up everything from solar panels to building materials.

The Bit

While the concept of the atom evolved slowly over millennia, the bit is one of the rare instances in which an idea seems to have arisen in the mind of a single person with little or no real precursor. Introduced by Claude Shannon in a paper in 1948—incidentally, the same year the transistor was invented—the bit has shaped how we see and interact with the world ever since.

The basic idea was that information isn’t a function of content, but the absence of ambiguity, which can be broken down to a single unit – a choice between two alternatives. Much like how a coin toss which lacks information while in the air, but takes on a level of certainty when it lands, information arises when ambiguity disappears.

He called this unit, a “binary digit” or a “bit” and much like the pound, quart, meter or liter, it has become such a basic unit of measurement that it’s hard to imagine our modern world without it. Shannon’s work would soon combine with Alan Turing’s concept of a universal computer to create the digital computer.

Now the digital revolution is ending and we will soon be entering a heterogeneous computing environment that will include things like quantum, neuromorphic and biological computing. Still, Claude Shannon’s simple idea will remain central to how we understand how information interacts with the world it describes.

The Gene

The concept of the gene was first discovered by an obscure Austrian monk named Gregor Mendel, but in one of those strange peculiarities of history, his work went almost totally unnoticed until the turn of the century. Even then, no one really knew what a gene was or how they functioned. The term was, for the most part, just an abstract concept.

That changed abruptly when James Watson and Francis Crick published their article in the scientific journal Nature. In a single stroke, the pair were able to show that genes were, in fact, made up of a molecule called DNA and that they operated through a surprisingly simple code made up of A,T,C and G.

Things really began to kick into high gear when the Human Genome Project was completed in 2003. Since then the cost to sequence a genome has been falling faster than the rate of Moore’s Law, which has unleashed a flurry of innovation. Jennifer Doudna’s discovery of CRISPR in 2012 revolutionized our ability to edit genes. More recently, mRNA technology has helped develop COVID-19 vaccines in record time.

Today, we have entered a new era of synthetic biology in which we can manipulate the genetic code of A,T,C and G almost as easily as we can the bits in the machines that Turing imagined all those years ago. Researchers are also exploring how we can use genes to create advanced materials and maybe even create better computers.

Innovation Is Combination

The similarity of the atom, the bit and the gene as elemental concepts is hard to miss and they’ve allowed us to understand our universe in a visceral, substantial way. Still, they arose in vastly different domains and have been largely applied to separate and distinct fields. In the future, however, we can expect vastly greater convergence between the three.

We’ve already seen glimpses of this. For example, as a graduate student Charlie Bennett was a teaching assistant for James Watson. Yet in between his sessions instructing undergraduates in Watson’s work on genes, he took an elective course on the theory of computing in which he learned about the work of Shannon and Turing. That led him to go work for IBM and become a pioneer in quantum computing.

In much the same way, scientists are applying powerful computers to develop new materials and design genetic sequences. Some of these new materials will be used to create more powerful computers. In the future, we can expect the concepts of the atom, the bit and the gene to combine and recombine in exciting ways that we can only begin to imagine today.

The truth is that innovation is combination and has, in truth, always been. The past few decades, in which one technology so thoroughly dominated that it was able to function largely in isolation to other fields, was an anomaly. What we are beginning to see now is, in large part, a reversion to the mean, where the most exciting work will be interdisciplinary.

This is Silicon Valley’s innovator’s dilemma. Nerdy young geeks will no longer be able to prosper coding blithely away in blissful isolation. It is no longer sufficient to work in bits alone. Increasingly we need to combine those bits with atoms and genes to create significant value. If you want to get a glimpse of the future, that’s where to look.

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

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The Runaway Innovation Train

The Runaway Innovation Train

GUEST POST from Pete Foley

In this blog, I return and expand on a paradox that has concerned me for some time.    Are we getting too good at innovation, and is it in danger of getting out of control?   That may seem like a strange question for an innovator to ask.  But innovation has always been a two edged sword.  It brings huge benefits, but also commensurate risks. 

Ostensibly, change is good. Because of technology, today we mostly live more comfortable lives, and enjoy superior health, longevity, and mostly increased leisure and abundance compared to our ancestors.

Exponential Innovation Growth:  The pace of innovation is accelerating. It may not exactly mirror Moore’s Law, and of course, innovation is much harder to quantify than transistors. But the general trend in innovation and change approximates exponential growth. The human stone-age lasted about 300,000 years before ending in about 3,000 BC with the advent of metalworking.  The culture of the Egyptian Pharos lasted 30 centuries.  It was certainly not without innovations, but by modern standards, things changed very slowly. My mum recently turned 98 years young, and the pace of change she has seen in her lifetime is staggering by comparison to the past.  Literally from horse and carts delivering milk when she was a child in poor SE London, to todays world of self driving cars and exploring our solar system and beyond.  And with AI, quantum computing, fusion, gene manipulation, manned interplanetary spaceflight, and even advanced behavior manipulation all jockeying for position in the current innovation race, it seems highly likely that those living today will see even more dramatic change than my mum experienced.  

The Dark Side of Innovation: While accelerated innovation is probably beneficial overall, it is not without its costs. For starters, while humans are natural innovators, we are also paradoxically change averse.  Our brains are configured to manage more of our daily lives around habits and familiar behaviors than new experiences.  It simply takes more mental effort to manage new stuff than familiar stuff.  As a result we like some change, but not too much, or we become stressed.  At least some of the burgeoning mental health crisis we face today is probably attributable the difficulty we have adapting to so much rapid change and new technology on multiple fronts.

Nefarious Innovation:  And of course, new technology can be used for nefarious as well as noble purpose. We can now kill our fellow humans far more efficiently, and remotely than our ancestors dreamed of.  The internet gives us unprecedented access to both information and connectivity, but is also a source of misinformation and manipulation.  

The Abundance Dichotomy:  Innovation increases abundance, but it’s arguable if that actually makes us happier.  It gives us more, but paradoxically brings greater inequalities in distribution of the ‘wealth’ it creates. Behavior science has shown us consistently that humans make far more relative than absolute judgments.  Being better off than our ancestors actually doesn’t do much for us.  Instead we are far more interested in being better off than our peers, neighbors or the people we compare ourselves to on Instagram. And therein lies yet another challenge. Social media means we now compare ourselves to far more people than past generations, meaning that the standards we judge ourselves against are higher than ever before.     

Side effects and Unintended Consequences: Side effects and unintended consequences are perhaps the most difficult challenge we face with innovation. As the pace of innovation accelerates, so does the build up of side effects, and problematically, these often lag our initial innovations. All too often, we only become aware of them when they have already become a significant problem. Climate change is of course a poster child for this, as a huge unanticipated consequence of the industrial revolution. The same applies to pollution.  But as innovation accelerates, the unintended consequences it brings are also stacking up.  The first generations of ‘digital natives’ are facing unprecedented mental health challenges.  Diseases are becoming resistant to antibiotics, while population density is leading increased rate of new disease emergence. Agricultural efficiency has created monocultures that are inherently more fragile than the more diverse supply chain of the past.  Longevity is putting enormous pressure on healthcare.

The More we Innovate, the less we understand:  And last, but not least, as innovation accelerates, we understand less about what we are creating. Technology becomes unfathomably complex, and requires increasing specialization, which means few if any really understand the holistic picture.  Today we are largely going full speed ahead with AI, quantum computing, genetic engineering, and more subtle, but equally perilous experiments in behavioral and social manipulation.  But we are doing so with increasingly less pervasive understanding of direct, let alone unintended consequences of these complex changes!   

The Runaway Innovation Train:  So should we back off and slow down?  Is it time to pump the brakes? It’s an odd question for an innovator, but it’s likely a moot point anyway. The reality is that we probably cannot slow down, even if we want to.  Innovation is largely a self-propagating chain reaction. All innovators stand on the shoulders of giants. Every generation builds on past discoveries, and often this growing knowledge base inevitably leads to multiple further innovations.  The connectivity and information access of internet alone is driving today’s unprecedented innovation, and AI and quantum computing will only accelerate this further.  History is compelling on this point. Stone-age innovation was slow not because our ancestors lacked intelligence.  To the best of our knowledge, they were neurologically the same as us.  But they lacked the cumulative knowledge, and the network to access it that we now enjoy.   Even the smartest of us cannot go from inventing flint-knapping to quantum mechanics in a single generation. But, back to ‘standing on the shoulder of giants’, we can build on cumulative knowledge assembled by those who went before us to continuously improve.  And as that cumulative knowledge grows, more and more tools and resources become available, multiple insights emerge, and we create what amounts to a chain reaction of innovations.  But the trouble with chain reactions is that they can be very hard to control.    

Simultaneous Innovation: Perhaps the most compelling support for this inevitability of innovation lies in the pervasiveness of simultaneous innovation.   How does human culture exist for 50,000 years or more and then ‘suddenly’ two people, Darwin and Wallace come up with the theory of evolution independently and simultaneously?  The same question for calculus (Newton and Leibniz), or the precarious proliferation of nuclear weapons and other assorted weapons of mass destruction.  It’s not coincidence, but simply reflects that once all of the pieces of a puzzle are in place, somebody, and more likely, multiple people will inevitably make connections and see the next step in the innovation chain. 

But as innovation expands like a conquering army on multiple fronts, more and more puzzle pieces become available, and more puzzles are solved.  But unfortunately associated side effects and unanticipated consequences also build up, and my concern is that they can potentially overwhelm us. And this is compounded because often, as in the case of climate change, dealing with side effects can be more demanding than the original innovation. And because they can be slow to emerge, they are often deeply rooted before we become aware of them. As we look forward, just taking AI as an example, we can already somewhat anticipate some worrying possibilities. But what about the surprises analogous to climate change that we haven’t even thought of yet? I find that a sobering thought that we are attempting to create consciousness, but despite the efforts of numerous Nobel laureates over decades, we still have to idea what consciousness is. It’s called the ‘hard problem’ for good reason.  

Stop the World, I Want to Get Off: So why not slow down? There are precedents, in the form of nuclear arms treaties, and a variety of ethically based constraints on scientific exploration.  But regulations require everybody to agree and comply. Very big, expensive and expansive innovations are relatively easy to police. North Korea and Iran notwithstanding, there are fortunately not too many countries building nuclear capability, at least not yet. But a lot of emerging technology has the potential to require far less physical and financial infrastructure.  Cyber crime, gene manipulation, crypto and many others can be carried out with smaller, more distributed resources, which are far more difficult to police.  Even AI, which takes considerable resources to initially create, opens numerous doors for misuse that requires far less resource. 

The Atomic Weapons Conundrum.  The challenge with getting bad actors to agree on regulation and constraint is painfully illustrated by the atomic bomb.  The discovery of fission by Strassman and Hahn in the late 1930’s made the bomb inevitable. This set the stage for a race to turn theory into practice between the Allies and Nazi Germany. The Nazis were bad actor, so realistically our only option was to win the race.  We did, but at enormous cost. Once the ‘cat was out of the bag, we faced a terrible choice; create nuclear weapons, and the horror they represent, or chose to legislate against them, but in so doing, cede that terrible power to the Nazi’s?  Not an enviable choice.

Cumulative Knowledge.  Today we face similar conundrums on multiple fronts. Cumulative knowledge will make it extremely difficult not to advance multiple, potentially perilous technologies.  Countries who legislate against it risk either pushing it underground, or falling behind and deferring to others. The recent open letter from Meta to the EU chastising it for the potential economic impacts of its AI regulations may have dripped with self-interest.  But that didn’t make it wrong.   https://euneedsai.com/  Even if the EU slows down AI development, the pieces of the puzzle are already in place.  Big corporations, and less conservative countries will still pursue the upside, and risk the downside. The cat is very much out of the bag.

Muddling Through:  The good news is that when faced with potentially perilous change in the past, we’ve muddled through.  Hopefully we will do so again.   We’ve avoided a nuclear holocaust, at least for now.  Social media has destabilized our social order, but hasn’t destroyed it, yet.  We’ve been through a pandemic, and come out of it, not unscathed, but still functioning.  We are making progress in dealing with climate change, and have made enormous strides in managing pollution.

Chain Reactions:  But the innovation chain reaction, and the impact of cumulative knowledge mean that the rate of change will, in the absence of catastrophe, inevitably continue to accelerate. And as it does, so will side effects, nefarious use, mistakes and any unintended consequences that derive from it. Key factors that have helped us in the past are time and resource, but as waves of innovation increase in both frequency and intensity, both are likely to be increasingly squeezed.   

What can, or should we do? I certainly don’t have simple answers. We’re all pretty good, although by definition, far from perfect at scenario planning and trouble shooting for our individual innovations.  But the size and complexity of massive waves of innovation, such as AI, are obviously far more challenging.  No individual, or group can realistically either understand or own all of the implications. But perhaps we as an innovation community should put more collective resources against trying? We’ll never anticipate everything, and we’ll still get blindsided.  And putting resources against ‘what if’ scenarios is always a hard sell. But maybe we need to go into sales mode. 

Can the Problem Become the Solution? Encouragingly, the same emerging technology that creates potential issues could also help us.  AI and quantum computing will give us almost infinite capacity for computation and modeling.  Could we collectively assign more of that emerging resource against predicting and managing it’s own risks?

With many emerging technologies, we are now where we were in the 1900’s with climate change.  We are implementing massive, unpredictable change, and by definition have no idea what the unanticipated consequences of that will be. I personally think we’ll deal with climate change.  It’s difficult to slow a leviathan that’s been building for over a hundred years.  But we’ve taken the important first steps in acknowledging the problem, and are beginning to implement corrective action. 

But big issues require big solutions.  Long-term, I personally believe the most important thing for humanity to escape the gravity well.   Given the scale of our ability to curate global change, interplanetary colonization is not a luxury, but an essential.  Climate change is a shot across the bow with respect to how fragile our planet is, and how big our (unintended) influence can be.  We will hopefully manage that, and avoid nuclear war or synthetic pandemics for long enough to achieve it.  But ultimately, humanity needs the insurance dispersed planetary colonization will provide.  

Image credits: Microsoft Copilot

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Revolutionizing Customer Service

Brian Higgins On Driving Verizon’s Customer Experience Vision

Revolutionizing Customer Service - Brian Higgins On Driving Verizon's CX Vision

GUEST POST from Shep Hyken

If you have the best product in the world, that’s nice, but it’s not enough. You need a strong customer experience to go with it.

If you have the best service in the world, that’s nice, but it’s not enough. You need a strong product to go with it.

And one other thing. You also need customers! Without them, it doesn’t matter if you have the best product and the best service; you will eventually go out of business.

That’s why I’m excited about this week’s article. I had the opportunity to have an Amazing Business Radio interview with Brian Higgins, the chief customer experience officer at Verizon Consumer. After a career of 20-plus years working for one of the most recognized brands in the world, he has a lot to share about what it takes to get customers to say, “I’ll be back.”

Verizon is one of the most recognizable brands on the planet. A Fortune 50 company, it has more than 100,000 employees, a global presence serving more than 150 countries, more than $130 billion in annual revenue and a market cap of more than $168 billion.

Higgins made it clear that in addition to a premium network and product offerings, there needs to be a focus on customer experience with three primary objectives: addressing pain points, enhancing digital experiences and highlighting signature experiences exclusive to Verizon customers/members. They want to be easy to do business with and to use Customer Experience (CX) to capture market share and retain customers. What follows is a summary of Higgins’ most important points in our interview, followed by my commentary:

  1. Who Reports to Whom?: With Verizon’s emphasis on CX, one of the first questions I asked Higgins was about the company’s structure. Does CX report to marketing? Is CX over sales and marketing? Different companies put an emphasis on marketing, sales or experience. Often, one reports to the other. At Verizon, sales, revenue and experience work together. Higgins says, “We work in partnership with each other. You can’t build an experience if you don’t have the sales, revenue and customer care teams all on board.” The chief sales officer, chief revenue officer and chief experience officer “sit next to each other.”
  2. Membership: In our conversation, Higgins referred to Verizon’s customers as customers, members and subscribers. I asked which he preferred, and he quickly responded, “I would refer to them as members.” The membership is diverse, but the goal is to create a consistent and positive experience regardless of how individuals interact with the company. He sees the relationship with members as a partnership that is an intricate part of their lives. Most people check their phone the moment they wake up, throughout the day, and often, it’s one of the last things they check before going to bed. Verizon is a part of its members’ lives, and that’s an opportunity that cannot be mismanaged or abused.
  3. Employees Must Be Happy Too: More companies are recognizing that their CX must also include EX (employee experience). Employees must have the tools they need. This is an emphasis in his organization. Simplifying the employee experience with better tools and policies is the key to elevating the customer’s experience. Higgins shared the perfect description of why employee experience is paramount to the success of a business: “If employees aren’t happy and don’t feel they have the policies and tools they need that are right to engage with customers, you’re not going to get the experience right.”
  4. Focus on Little Pain Points: One of the priorities Higgins focuses on is what he refers to as “small cracks in the experience.” Seventy-five percent of the calls coming in to customer care are for small problems or questions, such as a promo code that didn’t work or an issue with a bill. His team continuously analyzes all customer journeys and works to fix them when needed. This helps to minimize recurring issues, thereby reducing customer support calls and the time employees spend fixing the same issue.
  5. The Digital Experience: Customers are starting to get comfortable with—and sometimes prefer—digital experiences. Making these experiences seamless and user-friendly increases overall customer satisfaction. More and more, they are using digital platforms to help with the “small cracks in the experience.” Employees also get an AI-infused digital experience. Higgins said Verizon uses AI to analyze customer conversations and provide real-time answers and solutions to employees, demonstrating how AI can support both employees and customers.
  6. Amplifying the Power of One Interaction: The final piece of wisdom Higgins shared was about recognizing how important a single interaction can be. Most customers don’t call very often. They may call once every three years, so each interaction needs to be treated like it’s a special moment—a unique opportunity to leave a lasting positive impression, one that leaves no doubt the customer made the right decision to do business with Verizon. Higgins believes in treating the customer like a relative visiting your home for a holiday. He closed by saying, “You’d be amazed how getting that one interaction with a customer right versus anything less than right can have a huge impact on the brand.”

Higgins’ vision for Verizon is not just about maintaining a superior network. It’s about creating an unparalleled customer experience that resonates with every interaction. As Verizon continues integrating advanced AI technologies and streamlining its processes, the focus continues to be on personalizing and enhancing every customer touchpoint, creating an experience that fosters high customer satisfaction and loyalty.

Image Credits: Pexels

This article originally appeared on Forbes.com

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Push versus Pull in the Productivity Zone

Push versus Pull in the Productivity Zone

GUEST POST from Geoffrey A. Moore

Digital transformation is hardly new. Advances in computing create more powerful infrastructure which in turn enables more productive operating models which in turn can enable wholly new business models. From mainframes to minicomputers to PCs to the Internet to the Worldwide Web to cloud computing to mobile apps to social media to generative AI, the hits just keep on coming, and every IT organization is asked to both keep the current systems running and to enable the enterprise to catch the next wave. And that’s a problem.

The dynamics of productivity involve a yin and yang exchange between systems that improve efficiency and programs that improve effectiveness. Systems, in this model, are intended to maintain state, with as little friction as possible. Programs, in this model, are intended to change state, with maximum impact within minimal time. Each has its own governance model, and the two must not be blended.

It is a rare IT organization that does not know how to maintain its own systems. That’s Job One, and the decision rights belong to the org itself. But many IT organizations lose their way when it comes to programs — specifically, the digital transformation initiatives that are re-engineering business processes across every sector of the global economy. They do not lose their way with respect to the technology of the systems. They are missing the boat on the management of the programs.

Specifically, when the CEO champions the next big thing, and IT gets a big chunk of funding, the IT leader commits to making it all happen. This is a mistake. Digital transformation entails re-engineering one or more operating models. These models are executed by organizations outside of IT. For the transformation to occur, the people in these organizations need to change their behavior, often drastically. IT cannot — indeed, must not — commit to this outcome. Change management is the responsibility of the consuming organization, not the delivery organization. In other words, programs must be pulled. They cannot be pushed. IT in its enthusiasm may believe it can evangelize the new operating model because people will just love it. Let me assure you — they won’t. Everybody endorses change as long as other people have to be the ones to do it. No one likes to move their own cheese.

Given all that, here’s the playbook to follow:

  1. If it is a program, the head of the operating unit that must change its behavior has to sponsor the change and pull the program in. Absent this commitment, the program simply must not be initiated.
  2. To govern the program, the Program Management Office needs a team of four, consisting of the consuming executive, the IT executive, the IT project manager, and the consuming organization’s program manager. The program manager, not the IT manager, is responsible for change management.
  3. The program is defined by a performance contract that uses a current state/future state contrast to establish the criteria for program completion. Until the future state is achieved, the program is not completed.
  4. Once the future state is achieved, then the IT manager is responsible for securing the system that will maintain state going forward.

Delivering programs that do not change state is the biggest source of waste in the Productivity Zone. There is an easy fix for this. Just say No.

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

Image Credit: Unsplash

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