Digital Transformation - A Revolution in Precision Through IoT, Mobility and Analytics

Fog of War

Sensors allow us to digitally monitor our physical world, and take real-time action on the data from afar.  Plant managers, in fact, can manage multiple manufacturing locations around the world in real-time via sensors and Internet connectivity.  Drone pilots in the Nevada desert; project military force by flying combat missions around the world via sensors and remote control.  Trucking companies can track and manage, via telematics, thousands of trucks, trailers and their cargo all across the country in real-time.  As automation increases due to advances in sensors, bandwidth, artificial intelligence, algorithms and machine learning - precision becomes not only possible, but also all-important.

The “fog of war” describes a chaotic and competitive environment filled with unknowns, uncertainty and imprecise data.  In a not so distant past, military leaders suffering in the "fog of war," desperately sought answers to four key questions:

1. Where are my enemies?
2. Where are my friends?
3. Where are my forces?
4. What are their strengths?

These unknowns and uncertainties impacted the strategies and tactics military leaders employed. Their focus, and many of their resources, were dedicated to defending against the unknown.  Today mobile apps, sensors and analytics are reducing the “fog of war” in many industries and markets by making more of it “known.”  How then is the revolution in precision transforming businesses and strategies today?

Many companies have not evolved from antiquated business models based on the “unknown and imprecise”, and continue to throw good money after bad by following "estimate-based" models. Sears’ reported this quarter that their sales decreased, and on-hand inventories increased.  These numbers seem to reflect an estimate-based model lacking precise market knowledge.

Many companies continue to follow old school estimate-based models and business case studies that don’t incorporate the availability of massive quantities of real-time data available today.  They have yet to change their strategies and tactics to support the new precision models.

The retailer Macy’s, is also facing a challenging quarter. In response they announced a new business strategy focusing on individual customers and personalizing their experiences (read more on personalization in Cutting Through Chaos in the Age of Mobile Me).  In the past Macy’s focused on selecting inventory and marketing to “regions,” not “individuals." Macy’s regional approach highlights the challenge many companies face exploiting precision data. Edward Deming, the father of quality improvement, once said, “The big problems are where people don't realize they have one in the first place.”  But in this case it seems Macy’s recognized the problem.

Mass marketing to regions is the antithesis of precision.  It is an “estimate-based” strategy formulated in a time when there was inprecise data.  It is not a strategy for today.

Ignoring today’s “revolution in precision” is like a manufacturer ignoring the “continuous quality improvement” (CQI) movement over the past 60 years. CQI is the process-based, data-driven approach to improving the quality of a product or service. It operates under the premise there is always room for improving operations, processes, and activities to increase quality. CQI teaches the importance of measuring everything and working with precise data to document reality and to recognize progress. The American automobile industry tried ignoring CQI for many years and suffered the consequences, while the Japanese auto industry excelled at quality. In another classic quote from Edward Deming, he said, “It is not necessary to change. Survival is not mandatory.” Taking advantage of precision is a must if surviving is in your plan.

The revolution in precision we are experiencing today is the result of our ability to precisely measure, in real-time, all kinds of new things that impact our business as a result of the Internet, mobile devices and connected sensors. These developments make precise data available from all corners of the globe in real-time. Precise data today makes traditional estimate-based business models, strategies and tactics obsolete.

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Kevin Benedict

Senior Analyst, Center for the Future of Work, Cognizant Writer, Speaker and World Traveler

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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

The 18 Laws for Winning with Data, Speed and Mobility

I have given nine presentations in the past 10 days on mobile and data strategies.  I have met with companies in the energy, media, insurance and banking industries.  I have brainstormed and discussed these laws for winning with data, speed and mobility, and they have held up.  In the age of mobile me, where information is the prize, a new set of laws and strategies are required to win.  In my new report, "Cutting Through Chaos in the Age of Mobile Me," I discuss many of these laws and how they are applied in mobile apps and mobile commerce.

1. Data is the modern commercial battlefield.
2. Information dominance is the strategic goal.
3. Real-time operations and tempos are the targets.
4. Advantages in speed, analytics, business operational tempos determine the winners.
5. Real-time business speed is enabled by advances in mobile information, sensors and wireless communications.
6. Competition is now focused on optimizing information logistics systems (the systems involved in maximizing information advantages).
7. Businesses that can “understand and act with speed” dominate those which are slower. 
8. In order to win or gain superiority over competitors in the age of information, you must operate  information logistics systems at a faster tempo, and get inside your competitor's decision curves. (Adapted from John Boyd)
9. Situational awareness enables insights, innovations and operations to be conducted faster and at lower cost .
10. Principle of Acceleration & Mobility – As demand for mobile apps increases, an even greater demand for changes will occur across business processes, operations and IT.
11. The more data that is collected and analyzed, the greater the economic value and innovation opportunity it has in aggregate.
12. Data has a shelf-life, and the economic value of data diminishes quickly over time.
13. The economic value of information multiplies when combined with context and right time delivery.
14. Mobile apps provide only as much value as the systems behind them.
15. Full Spectrum Information: Winners will dominate by collecting, transmitting, analyzing, reporting and automating decision making faster and better.
16. The size of opponents and their systems and platforms are less representative of power today, than the quality of their sensor systems, mobile communication links and their ability to use information to their advantage.
17. Information is a new asset class, in that it has measurable economic value.  There are significant strategic, operational and financial reasons for investing in it, and optimizing it. (Douglas Laney, Gartner)
18. If I can develop and pursue my plan to defeat you faster than you can execute your plan to defeat me, then your plan in unimportant. ~ Robert Leonard

These laws need to be known, and their relevance intimately understood and applied to every aspect of business and IT today.

Download the new report "Cutting Through Chaos in the Age of Mobile Me" - http://www.cognizant.com/InsightsWhitepapers/Cutting-Through-Chaos-in-the-Age-of-Mobile-Me-codex1579.pdf

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Kevin Benedict

Writer, Speaker, Analyst and World Traveler

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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

Data Collection and the Modern Battlefields of Business

Dr. John Snow's Map

In 1854 Cholera broke out in the Soho neighborhood of London.  Hundreds of people were struck down and died within days.  No one, at the time understood where the disease came from, how to treat it or how it was transmitted.

A local physician, Dr. John Snow spent every possible moment of his day studying the victims and data in an attempt to understand the disease.  His biggest challenge was a lack of data.  He had only the list of the dead and a blank map of the neighborhood.  What he needed was more data.  This was solved when he met the local priest, Henry Whitehouse.  Whitehouse had recorded the time of death, and the location where all the families lived and died.  When these sources of data where combined, and then overlaid on a map, visual patterns emerged which ultimately led the two to see the common denominator for all the victims was drinking contaminated water from the Broad Street water pump.

The pump handle was removed, people stopped drinking its water, and the disease burned out.  Dr. John Snow is now recognized as one of the fathers of modern epidemiology.  The data that led to his discoveries were:

• Victims
• Relationships
• Locations
• Time of illness
• Time of death
• Behaviors and patterns of life

Adding all of these data sources to a map, for visual reference and clarity, enabled the insight that ultimately revealed the source and means of transmission of the disease.  Minus key data sources, the disease would have remained a mystery and many more people would have died.

In business, many challenges and obstacles today can also be solved with better data collection strategies and enhanced analytics.  We have all heard the phrase, "knowledge is power."  Knowledge comes from data, so data is power.

I sincerely believe that the battlefields of business today are around data.  The winners of today and tomorrow will be those better able to collect, analyze, understand and apply data to the customization and personalization of digital interactions.  My colleagues Malcolm Frank, Paul Roehrig and Ben Pring wrote the book "Code Halos" last year to dive deep into these ideas.

Last week I published a new thought leadership whitepaper on the application of real-time data strategies and analytics to mobile commerce and consumer facing mobile applications.  The paper is titled, "Cutting Through Chaos in the Age of Mobile Me."  You can download the whitepaper here http://www.cognizant.com/InsightsWhitepapers/Cutting-Through-Chaos-in-the-Age-of-Mobile-Me-codex1579.pdf.

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Kevin Benedict

Writer, Speaker, Analyst and World Traveler

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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

Speed, Personalization, Analytics and Enterprise Information Systems

Ninety percent of 18-34 years old strongly value a personalized mobile and web experience, and eighty-two percent of of those over 45 years old value personalization.  What kind of personalization?  Forty-seven percent of shoppers prefer location or time-based personalization in mobile applications or websites.  In other words, don't show me things that are not available for me to purchase in Boise at this time, or that I don't like!  Given this survey data we all know what needs to be done and are taking the necessary steps to be able to offer personalization, right?  Wrong it seems.  Many companies are not using available data to understand their customers better so they can provide them with contextually relevant and personalized mobile application experiences.

My colleague, Benjamin Pring, at Cognizant's Center for the Future of Work recently published a research paper titled Putting the Experience in Digital Customer Experience.  In his research he found fewer than 20% of respondents use analytics generated by application programming interface (API) traffic to understand their customers’ online and offline purchase journeys.  Just 41% of respondents in the retail industry say they will be effective at analyzing customer metadata by 2017.  A mere 42% of respondents say they have adequate tools and skills to analyze digitally generated data.  Only one-third of respondents have made adjustments to their business model to pursue strategies driven by digital information about their customers.

An additional challenge, is that personalizing mobile user experiences takes speed, speed many do not have available in their current IT environments.  As organizations begin developing mobile strategies and implementing mobile apps, they quickly realize simply developing and deploying basic mobile apps, infrastructure and frameworks is not enough.  They must push further and implement a real-time enterprise to remain competitive.  This real-time requirement is at the root of many problems.  Eighty-four percent of survey participants reported they have IT systems too slow or incapable of supporting real-time mobility, which negatively impacts mobile app performance and the user’s experience.

We have some more work to do.

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Kevin Benedict

Writer, Speaker, Senior Analyst

Digital Transformation, EBA, Center for the Future of Work Cognizant

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***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.