Category Archives: Technology

Digital Transformation Matters

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Digital Transformation Matters

The pace of change is accelerating.

Much has changed since we all started to dial in with our modems and connect to online services like America Online or Compuserve and eventually directly onto the Internet and the World Wide Web. Elements of our digital world continue to invade our language and our consciousness.

  • “Text me later.”
  • “Skype me tomorrow.”
  • “Google it.”
  • “#hashtag”
  • “rtofl”

Whether we like it or not the physical world and the digital world, and people are more likely to freak out about leaving their mobile phone at home than their wallet. Soon you won’t even need to carry a wallet (unless you want to). Canada stopped making pennies. In Sweden many businesses no longer take cash. Have you tried buying a drink on an airplane lately? (no cash accepted there either)

We now live in a digital age.

Not because technology is new, but because the way we react to technology and interact with it is different.

We’ve had technology for a while, but we used it primarily for performing calculations, and then for information storage and retrieval. But now, because the computer has moved from being a machine in a lab programmed with punch cards, to something nearly every one of us carries in our pocket or wears on our wrist, we’re beginning to form relationships with machines and more importantly, to use our machines to form, maintain, and even deepen, our human relationships.

So what does this mean for you as a business person?

It means that people like me have to drag you kicking and screaming away from the way you’ve always done business, away from the way you’ve always structured your enterprise, away from the ways you’ve facilitated communication among employees and between you and your customers, partners, and suppliers and towards a fundamentally different way of organizing and operating your business.

Are you ready to do business in a digital way for the digital age?

No?

Well, your market is large and attractive to me and my digital native friends. While you struggle under the weight of your legacy systems and the denial that you must change how you think, change how you interact with customers, change how your business works inside, maybe we will re-imagine your business and your entire industry from the ground up with a collection of digital strategies that utilize the power of the digital mindset to more efficiently and effectively utilize people, process and technology with some venture capital backing to challenge the incumbents and put them out of business. People are fascinated with startups like Uber and with good reason, but they should also be looking at what established technology companies like Amazon are doing because you’re either have to think like a technology company or go out of business.

In my next article on digital transformation we will circle back to discuss Uber in a bit more detail as we explore the difference between a digital strategy and a digital transformation. Because they are not the same and are vastly different in what they require to be successful. The one thing they both have in common is that they will inflict change (in varying amounts) upon the organization, and with a more visual, collaborative approach to planning that change – like that enabled by the Change Planning Toolkit™ that I introduce in my new book Charting Change – you will increase your odds of beating the 70% change failure rate and successfully achieving your digital change goals.

Stay tuned!

This article originally appeared on Linkedin

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The Digital Innovation Talent Shortage

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The Digital Innovation Talent ShortageI was watching our Seattle Seahawks lose to the Green Bay Packers on Sunday and was surprised to see a series of television ads air during the game from GE, not touting how great their products are, but why GE is a great place for software developers to come work.

Each 30 second advertisement will have cost GE nearly $700,000, meaning that GE probably spent $2 million last Sunday. First I’ll share the ads and then I’ll share my thoughts on their significance.

All three advertisements are in this single video from ad agency BBDO:

  • Advertisement #1 (Parents’ reaction to Owen taking a developer job at GE)
  • Advertisement #2 (Fellow students’ reaction to Owen taking a job with GE)
  • Advertisement #3 (Friends’ reaction to Owen taking a developer job with GE)

All three ads highlight the gap between most people’s industrial age thinking and our new digital reality, and close with the tagline:

“The digital company. That’s also an industrial company.”

A year ago, together with Linda Bernardi, a Chief Innovation Officer at IBM, the two of us wrote about this very subject in our article for the world’s most popular innovation web site, Innovation Excellence:

You’re Either a Technology Business or You’re Out of Business

The sad truth is that most companies don’t realize this. GE, based on this ad campaign, obviously does. I won’t re-visit all of the points in the article, but instead I encourage you to read it, and for now I’ll focus on additional thoughts emerging since then. One thing I did after publishing this article with Linda, was ask the following question at my previous employer:

“Are we a technology company that happens to serve customers in the health insurance industry, or are we a health insurance company with an IT department?”

Does anyone want to guess what the majority of people answered?

The healthcare industry is undergoing a period of incredible change, but they are not the only ones. Technology is transforming market and customer expectations faster than executives and employees can transform their thinking. Customers expect more, they demand more, in every industry, and this is opening the door both for new entrants and for existing competitors to rearrange the market share picture, IF they take strategic actions focused on transforming into a more digital, more collaborative, more innovative organization. The questions every organization should be asking themselves include:

  1. How can we modify the architecture of our organization to cope with the increasing pace of change?
  2. How can we increase our organizational agility?
  3. How can we retain the talent we need to power a true digital transformation?
  4. How can we attract the talent we need to fill the gaps in our skills base to empower a successful digital transformation and to drive success in the marketplace as a social business?

I see GE’s ad campaign as the canary in the coal mine, an example of a large company awakening to one of the major challenges every organization faces in continuing to stay relevant (and profitable) in a rapidly changing, digital, always connected world.

The fact is that almost every organization needs more digital innovation talent…

And you know what?

There is a shortage…

Keeping up with the pace of technological change is hard enough. Conducting a digital transformation, and becoming a true social business is even harder, but INCREDIBLY important to your current and future success. The companies that realize this and commit to a coordinated digital transformation, embracing the fact that they are a technology company serving a particular industry and a certain set of customers will have a better chance of attracting the scarce talent they need to complete the work to emerge out the other side. And you MUST do this before every other company out there piles on and causes an incredibly bloody fight for the scarce digital innovation talent out there, and the market share that is at risk.

I will be writing more about how to increase your organizational agility and to achieve a successful digital transformation in the coming months in the run up to the publishing of my second book by Palgrave Macmillan on organizational change and the Change Planning Toolkit™.

Are you going to be like GE and admit that you need to change the way you think of yourself as an organization and change the perception potential employees have of you in the marketplace?

Are you ready to become a social business?

Do you have what you need to achieve a successful digital transformation?

Are you ready to admit that you need help getting there?

Image credit: news-leader.com


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Do You Agree or Disagree with Samsung’s Vision of the Future?

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Samsung recently posted a video highlighting their vision of the future and the evolution of the Internet of Things (IoT).

The movie highlights their tagline ‘In Sync with Life’

While certain of the benefits highlighted in Samsung’s IOT video might be interesting, I found myself left with more questions than answers, including:

How necessary is this?

Would this really improve my life?

Is it simplifying anything or in reality, more likely to add complexity and configuration frustration?

Would this create a future that’s more human or less human?

Could I live without this?

What are the health effects of increasing the amount of unnatural frequencies being transmitted through the air?

Does this look like a better or worse future to you?


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A Peek Inside the Broken Corporate Hiring Model

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A Peek Inside the Broken Corporate Hiring ModelI was reading with interest some of Linkedin’s recent #HowIHire series and in doing so it was interesting to see how many people are still operating under the old, broken hiring paradigm when it comes to the labor market.

The best of the bunch that I read was Beth Comstock’s You’re Hired. Now What which has more to do with what she thinks people should do after she gives them a job rather than how she hires, which I thought was a good angle to take.

My day job was recently eliminated in a budget reallocation, so I’m out there in the market looking for my next new challenge. Throughout this process (and my consulting work over the years), I’ve observed a number of different challenges that companies face with hiring, and identified some opportunities for companies to increase their return on human capital:

Challenge #1:

Scanning resumes and online applications for keywords is a very bad way to find talent. It’s very good however at finding people who at least know how to spell the keywords.

Challenge #2:

The way most organizations handle human resources is very much a product of the industrial age. Hiring new employees is still a very bureaucratic affair, a far cry from reflecting an Internet Age approach, and farther still from what’s needed in the era of Social Business and Digital Transformation. Having an outdated, bureaucratic hiring approach prevents many organizations from growing (or changing) as fast as they may need to maximize revenue and profits.

Challenge #3:

Building on Challenge #2, the hiring process is incredibly slow. It can take weeks or months to finalize and post job descriptions. It can take weeks to source candidates. It can take weeks or months for a hiring manager to get around to interviewing anyone because they are too busy. This can result in the loss of the best candidates, can lead to the loss of current employees picking up the slack (leading to more job openings), and impacts the financial performance of the organization.

Challenge #4:

With the exception of professional sports franchises, companies are so risk averse that they would rather hire someone with a lot of experience doing something in a mediocre way than someone with limited experience but a higher upside (higher capacity and capability). Following this analogy, most companies would never have hired a high school kid like Lebron James.

Challenge #5:

Automated and recruiter-led screening systems are better at identifying people that fit the job description than they are at identifying people that will thrive in the company culture and be a productive team member. You can’t train people to be a good cultural fit, but you can train smart people to do just about anything.

Opportunity #1:

Every company whether it likes it or not, is a technology company. So, if you’re running a technology company, and ideally a social business, shouldn’t you want to hire people who know how to use technology (or at least how to build a Linkedin profile)? And if they have a Linkedin profile, why wouldn’t you use that instead of asking them to create another profile on your careers site?

Opportunity #2:

Things are changing at an increasing rate. Hire people who embrace change and like to learn, because you’re always going to be asking people to learn something new as the world continues to change around you.

Opportunity #3:

Looking around the landscape, it seems like we’ve created more ways to help people find the ideal new romantic partner than the ideal new employee. Are there things that the recruiting industry could learn for the romance industry?

Opportunity #4:

There is more to an employee than their intersection with the job description. In fact employees often have knowledge, skills and abilities that intersect with multiple job descriptions. Below you’ll find a visual depiction of this and of the increasingly less well-defined organizational boundaries:

Organization of the Future

Opportunity #5:

As the boundaries of the organization become less well-defined (see above) and as business makes increasing use of open innovation, partnerships, and co-opetition, hiring managers should consider not just matching the job description but also consider their ability to build and leverage external networks, and investigate the scope and quality of their existing networks.

Conclusion

Of course there are many more challenges and opportunities than I have space to list here, but I find these to be an interesting start to a conversation. What challenges or opportunities would you like to add to the conversation?

Image credit: businessnewsdaily.com


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Aquion Energy to Disrupt Tesla’s Next Move?

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Aquion versus Tesla

Water, water, everywhere…

Is water the solution to one of the biggest shortcomings of renewable energy?

When the wind doesn’t blow or the sun doesn’t shine, these renewable energy sources don’t source much energy, so during those times home owners and businesses using alternative energy must instead draw more power from the grid.

Elon Musk believes the solution is to build a Giga-Factory in the desert of the western United States capable of producing as many Lithium Ion batteries under one roof as are currently being made – WORLDWIDE. He intends to then use those Lithium Ion batteries not just to power his fancy electric cars for the nouveau riche, but also to power big industrial batteries suitable for homes and businesses in a new product called Powerwall. This new product contains batteries people could load in the middle of the night when there is excess supply and draw from during the day when demand (and rates) are higher, or connect to renewable energy sources and use as a storage device.

But Aquion Energy, a company founded by Dr. Jay Whitacre, a professor of materials science at Carnegie Mellon University, and backed by Bill Gates and venture capital firm Kleiner Perkins Caufield and Byers, has a different idea for how to store large amounts of energy in these same kinds of situations.

What’s different about the Aquion Energy solution compared to the Tesla Powerwall solution, is that it uses saltwater, which according to the National Oceanic and Atmospheric Administration, our oceans cover 71% of the earth’s surface and contain 95% of our water. Prices are reportedly are in the $1,000-$3,000 range and they say their batteries last longer than other battery technologies.

Meanwhile, Tesla’s solution uses expensive Lithium Ion batteries, proven to catch fire from time to time, difficult to make (Lithium mining is very water intensive and takes place typically in arid lands), the batteries often last 2-3 years (at least in laptop applications) and then unfortunately all too frequently end up in landfills. Prices are reportedly are in the $3,000-$3,500 range.

It seems like Tesla is pursuing more of a USA-centric approach while Aquion is seeking to go global more quickly, seeing its solution as potentially even more attractive for less-developed countries.

Is there room for both technologies in the marketplace?

Yes, I think so, but it will be interesting to see how the market develops.

One thing is for sure, greater availability of these kinds of systems and their ability to bring increased visibility to renewable energy and to bring down the costs of its application is a great thing!

Sources: CNBC, Tesla, and Aquion Energy


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Apple Announces Name Change to App-le

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Apple Announces Name Change to App-le

First Apple changed its name from Apple Computer to Apple to better reflect a business focus that was extending beyond computers to music players, smartphones, digital music sales, and more.

And last week Apple announced a flurry of new products including:

  • iPhone 6s and iPhone 6s plus
  • All new Apple TV
  • iPad Pro
  • watchOS 2
  • iOS9

What was clear from the announcements is that Apple’s view the future of computing and entertainment is an App-centric one.

First Apple created Apps for the iPod. Anyone remember the iPod? Apple barely does. They still make iPods, but they’ve been dropped from the main menu on Apple’s web site and relegated to the text links at the bottom of the page. Then they create Apps for the iPhone and the iPad and the watch. And this past week Apple announced their App-centric vision for the future of television.

What is this vision?

It’s pretty simple really. Want to watch major league baseball (MLB) on your television, buy the MLB app. Want to watch HBO, buy the app. Cartoon Network? Get the app. You get the idea.

Why does Apple have this vision?

This App-centric vision of entertainment grows their ecosystem and enables Apple to make money not only from hardware sales, but also from commissions in the sale of all of these Apps. And as people buy more apps, they lock themselves further into Apple’s hardware, by design.

Apple’s App-centric vision for the future of television is good for creators of popular, quality content like HBO, the National Football League (NFL), Premier League Football, CNN, BBC, and for movie-centric aggregators (Netflix, Amazon). The evolving App-centric approach to television also has the benefit to the content creators of enabling them to build Apps that yes play full-screen video (what people expect), but also to integrate information, commerce and social elements into their Applications as they see fit. The downside is that content creators will lose the perceived safety that cable network bundling offers.

But the smartest, best run content creators are more likely to gradually embrace this App-centric possible future, and as a result Apple’s App-centric television future is likely to be a disaster for cable companies and other television-centric aggregators (Hulu, Sling). Why would you need an intermediary like a cable company when you can go straight to the source?

Cable companies could however try to beat Apple to the App Store model and potentially also beat them to the Spotify model for television if they move quickly. But are speed and courage what cable companies are known for?

YouTube and Facebook could also be big winners in Apple’s App-centric television future as both sites could become the home for a treasure trove of free sample shows, a place for people to discover new content to subscribe to. Facebook has made a big push into video the past few years, making this potential area of growth possible for them.

Apple missed the App-centric transition in music, and they had to go out and overpay for Beats to try and catch up to Spotify and others. They’ve also missed the early days of the App-centric transition in paid video apps as well, with Netflix enjoying the early success. They don’t want to get completely left behind, so they are making their big push towards an App-centric television future. The only question is how?

Will Apple look to create a subscription service like Netflix or Spotify as their App, or focus on promoting content creator Apps (NFL, CNN, etc.) through an App Store, both, or something completely different?

No matter which direction Apple chooses, it’s clear that with Apple it is all about the apps. So will Apple change its name to App-le? Probably not. But, they’ve made it very

clear that their vision for the future is an App-centric one. Will they be able to realize it?

Image credit: mashable.com

This article originally appeared on Linkedin


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Living Life by Text Message

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Living Life by Text MessageI did my MBA at London Business School in the United Kingdom and one of the benefits of studying at a top school and being an alumni is seeing all the really cool things that the entrepreneurial alumni coming behind you are doing or that alumni in the venture capital industry might be involved with.

One of the startup ventures a fellow London Business School alumni is involved with is called ServiceWire, a company focused on the on-demand services industry. ServiceWire bills itself as the help desk for your home service needs, and unlike Amazon’s new offering Amazon Home Services which requires you to go to the Amazon web site and make a bunch of clicks, ServiceWire lets you send a text message with your request and get a response from your Personal ServiceGuru with an upfront price estimate from handpicked professionals with satisfaction guaranteed. It’s a very interesting model. Much more mobile friendly than Amazon’s offering.

Too often people get caught in the mindset of a web site or a mobile app being the only way to deliver a quality service to customers, or as being the best way to solve a customers problem.

For example, yesterday I went to the YMCA and entered the building behind another patron but I was able to enter the facility probably a minute or more before him because he was trying to find the app on his phone and load it and use it, while they scanned the plastic card I keep in my wallet in two seconds and I was on my way. Technology doesn’t always make things more efficient or effective, and it’s easy to over-engineer a solution.

This is why I like ServiceWire’s approach to helping solve life’s little problems. At this point it is a UK company only and is taking new members by email invitation only (request an invitation on their web site). If it is successful I imagine someone else will copy their approach in the United States and elsewhere.

Will the ServiceWire approach succeed at the expense of Amazon Home Services’ approach?

The ServiceWire approach should also prompt the following questions:

What solution might you be over-engineering?

What other mechanisms could you use that you are ignoring now?

Keep innovating!


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Can Windows 10 Disrupt Android and Get Microsoft Back in Handset Game?

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Microsoft Tries to Disrupt Mobile Phone Market

Can Windows 10 Disrupt Android and Get Microsoft Back in Handset Game?I came across an article on Mashable recently highlighting a new Microsoft experiment. It highlights something that Microsoft has prototyped to test as part of their strategy to regain momentum in the mobile phone market by focusing on markets outside the United States where the first generation of the smartphone adoption battle hasn’t already been decided.

The first Microsoft branded phones are now appearing in the market as the relevance of the Nokia brand in the mobile phone market has nearly completely disappeared. With a single digit market share, Microsoft has to do something disruptive to get back in the game and get some value out of their huge Nokia acquisition. Most people would say that doing something disruptive is outside of Microsoft’s comfort zone, but there are examples to the contrary where Microsoft has been more innovative than Google or Apple, so nothing is impossible.

So enough buildup. What exactly is Microsoft fooling around with as a potential strategy to get back in the global smartphone market?

It is this…

Microsoft is working with Xiaomi to prove that it is possible to bring Windows to Android hardware. The technical details aren’t all that important, the bigger question is whether Android handset owners would consider doing this or not.

The big value proposition highlighted in the Mashable article is that Windows is less hungry for resources than Android and so especially for people with older smartphones the switch could make their handset feel more responsive. Someone switching like this probably wouldn’t make Microsoft any immediate money, but of course the hope would be that when they upgraded that they would choose a Microsoft OS handset for their next smartphone.

As someone who ditched his Android phone for a Nokia Lumia phone running Windows Phone and never looked back, I can confirm that Windows Phone is better than Android (althought the App selection is much smaller).

Given that Windows Phone biggest weakness is probably App availability, Microsoft better do everything they can to convert phones over to their new Windows 10 OS, other way that gap will never close. Will this experiment be fully unleashed? Will it work? Could Microsoft disrupt the smartphone market and get back in the game with this approach?

I guess only time will tell.

In the meantime, if you want to see more, check out the video above and work on your Chinese at the same time.

If you’re not sure what I meant by seamless computing when I referred to it above, I encourage you to check out my previous article – Cloud Computing is Dead, Long Live the Cloud! (which is also available as a narrated audio file)


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Listen to Crowd Computing is Dead, Long Live the Cloud!

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by Braden Kelley

The Innovation Excellence version of my recent article Cloud Computing is Dead, Long Live the Cloud! has done so well that Umano has decided to turn it into an audio-article that you can listen to while you work, drive, etc. if you were too busy to read it when it came out. 😉

Here is the audio file for your listening enjoyment:

(sorry, umano seems to have gone out of business)

Hopefully I will be able to bring you more of my articles narrated in this way for those of you who prefer to listen to content instead of read it.

Keep innovating!


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Rise of Seamless Computing

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Rise of Seamless Computing

Some people have made fun of the fact that I said that the iPad might fail when it was announced, but I just looked back at what I said back in 2010 (before Apple fixed their Value Translation problem) and I stand by what I said in that article. Then I looked further back to what I wrote in 2009 about my vision for the future evolution of computing, a concept I call Seamless Computing.

I also just looked up the iPad sales data (note this chart is missing the first quarter’s sales data and Q1 is the Christmas quarter). You’ll notice that it did in fact take about two years for iPad sales to really take off (my prediction). When I highlight that this was BEFORE they fixed their value translation problem, I mean that this article was written when most people was calling the iPad a giant iPhone and was before they came out with the out of home (OOH) advertising showing somebody leaning back on a couch with the iPad on their lap. This single image fixed their perception problem, and these billboards came out as the product was starting to ship (a full three months after they announced the product). You’ll also notice in the chart if you follow the link above that the iPad has already peaked and is on the decline.

Unfortunately for Apple, the iPod is past its peak, now the iPad is past its peak, and the iPhone 6 will represent the peak for their mobile phone sales at some point as replacement cycles start to lengthen and lower priced smartphones start to be good enough for most people. Apple will likely to continue to win in the luxury smartphone market, but the non-luxury smartphone market will be where the growth is (not Apple’s strength).

Now, moving on from Apple, what it is interesting is that for the past couple of years we’ve been obsessed with smartphones and cloud computing, but it is looking more and more that the timing is now right for Seamless Computing to become the next battleground.

Cloud Computing won’t die or go away as Seamless Computing takes hold, but the cloud will become less sexy and more just part of the plumbing necessary to make Seamless Computing work.

Who will the winners in Seamless Computing be?

In 2009 I laid out my first ideas about what Seamless Computing might look like:

People’s behavior is changing. As people move to smartphones like the Apple iPhone, these devices are occupying the middle space (around the neighborhood), and the mobility of laptops is shifting to the edges – around the house and around the world.

Personally I believe that as smartphones and cloud computing evolve, these devices will become our primary computing hub and new hardware will be introduced that connects physically, wirelessly or virtually to enhance storage, computing power, screen size, input needs, output needs, etc.

– This would be thinking differently.
– This would be more than introducing a ‘me-too, but a little better’ product.
– This would be innovation.

Then I expanded upon this in 2010 by laying out the following computing scenario:

What would be most valuable for people, what they really want, is an extensible, pocketable device that connect wirelessly to whatever input or output devices that they might need to fit the context of what they want to do. To keep it simple and Apple-specific, in one pocket you’ve got your iPhone, and in your other pocket you’ve got a larger screen with limited intelligence that folds in half and connects to your iPhone and can also transmit touch and gesture input for those times when you want a bigger screen. When you get to work you put your iPhone on the desk and it connects to your monitor, keyboard, and possibly even auxiliary storage and processing unit to augment the iPhone’s onboard capabilities. Ooops! Time for a meeting, so I grab my iPhone, get to the conference room and wirelessly connect my iPhone to the in-room projector and do my presentation. On the bus home I can watch a movie or read a book, and when I get home I can connect my iPhone to the television and download a movie or watch something from my TV subscriptions. So why do I need to spend $800 for a fourth screen again?

Now, along comes a company called Neptune that is building a prototype of a computing scenario similar to one that I laid out in 2009 and is raising funds on IndieGogo to make it a reality. The main difference is that I had the smartphone as the hub, where they have a smartwatch as their hub. My biggest concern about making the smartwatch the hub would be battery life. Here is a video showing their vision:

But Neptune isn’t alone in pushing computing forward towards Seamless Computing. Microsoft is starting to lay the foundation for this kind of computing with Windows 10. The wireless carriers are investing in increasing their ability to make successful session handoffs between 4G LTE and WiFi without dropping calls or data sessions, and Neptune, Intel and others have created wireless protocols that allow a smart device to send video output to other devices.

Will Seamless Computing be a reality soon?

And if so, how long do you think it will take before it becomes commonplace?

My bet is on 2-3 years, meaning that Neptune may be too early, unless they do an amazing job at all three pillars of successful innovation:

  1. Value Creation
  2. Value Access
  3. Value Translation

Keep innovating!

Image source: Wired


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