Technology is an Enabler

First of all, what is an enabler?  For good or ill, an enabler is something or someone that helps (enables) something to happen.   Technology by itself does nothing.  It sits there.  A very expensive piece of software or a cute looking smart phone that does absolutely NOTHING.

Until a human being picks up the tool -- from the invention of the wheel to the invention of the iPhone -- nothing happens.  A tool is only as good as the person using it.

The wheel is a prime example.  A wheel can be used to power a wheelbarrow, allowing heavy items to be transported with relative ease on one wheel being pushed by a human.  A wheel is the basis of many simple machines.  Take two wheels, a large wheel rigidly secured to a smaller wheel or shaft, (called an axle) and you have a modified lever.  It is the two wheels, the wheel and axle that allows a car to  travel many miles or kilometers an hour as the wheels turn and turn again, moving the car forward.

But without humans doing something the wheel is just a round do-nut that sits there looking pretty.

What is true of the wheel is true of every machine ever built, or which will ever be invented.  People have to use them, and use them wisely for them to do anything at all.

Somehow when it comes to technology people forget it is simply a tool.  Many people seem to expect technology to magically improve their lives.

Technology is not magic.   It is just another enabler which can help only if we first examine what we need, how we are fulfilling that need today -- and only then asking the question "can technology" make this job faster, more efficient, cost less to do -- or somehow make me more money by letting me do this job faster.

I am a huge fan of CRM (customer relationship management).  Yet 70% of all CRM implementations fail.  70% fail!  Can we blame all this failure on the tools?  Or are people expecting too much of the tool itself?

Everything starts and ends with people.  CRM can be a fantastic tool, but you have to think of what your business does, and how you make money today.  Then and only then can you even consider if technology can help you do the job better.

Microsoft, Salesforce.com and Google, OH MY!

One of the things I love most about the high tech industry is that it is never boring! There is always some new kid on the block trying to dethrone the current champ.

Once upon a time IBM was king and they decided to get into the then mom and pop business of the personal computer.  They wanted to do this quickly and cheaply and since, thought IBM, the personal computer business was one reserved for geeks and nerds it would never be that big -- what they hey, just partner your way into the space. 

So IBM made a deal with a young guy who hadn't even finished college.  They bought some programming languages from him, and when the deal for an operating system fell through they let this guy scramble to find one to sell to them.  The "guy" of course was Bill Gates, and the little operating system (Microsoft Disk Operating System, aka MS-DOS) was sellable by Gates to others and so soon Microsoft was a major force to behold.

One thing that has always appealed to be about Bill Gates (and I come out of the AT&T UNIX open systems model, so this is almost heresy to say) is his paranoia.  Bill Gates realized what he had done to IBM and that someone could come along and do it to him.  Thus when Xerox invented the GUI (graphical user interface) but did not exploit it, along came Steve Jobs and he introduced the Lisa -- a little proprietary PC with a graphical interface.

Bill Gates took notice of the Lisa, and what came next -- the Mac!  Before you knew it along comes Microsoft Windows.   Yeah, Windows was clunky and bug ridden, but here we are now at Windows 7 and Bill Gates' paranoia was right.

Gates was almost always right!

It was Gates' paranoia that got Microsoft to embed an Internet web browser into the operating system.  They got sued by various governments for monopolistic tendencies for bundling the browser in the operating system -- but Gates knew that long term if Microsoft did not have a huge share of the browser world they would eventually lose the operating system business as well.  The Internet would put applications and information in the network (which AT&T foresaw back in 1985 -- I was with AT&T Computer Systems back then and the vision their is reality now, but alas not with AT&T in the game).

So what is the latest salvo in the war?   The two behemoths now are Microsoft and Google -- and dare we say that Google is already winning the war?   Google has an operating system on cell phones (the Android) which is giving the Apple iPhone a run for it's money.   Many pundits say that within a few years most of us will be cruising the Internet with our cell phones not our PCs.   With the advent of the iPad (awesome, if you haven't seen them) your books, keyboards, browsing, etc. can all be done on a little tablet.  For Apple, still proprietary after all these years, the OS (operating system) is the iPhone OS, not the PC OS.  Google's Android will soon be on iPad clones coming in from China.

Oh yes, the major victors are about to change again.

So why mention Salesforce.com in the headline?  Salesforce.com is a leading CRM (customer relationship management) software vendor.  They use a SaaS (software as a service, not a CD you buy) model and have done very, very well.   Microsoft recently sued Salesforce.com for nine patent infringements.

Now the rumor is that Google may buy Salesforce.com!  Read this article in InfoWorld.

See what I mean about how interesting this industry is?  I swear it is better than watching soap operas!

Automating Product Management (PLM) -- Failure?

Product management is a high wire act that requires two skills that seem opposed to each other.  On the one had a product manager must be artistic and innovative -- able to spot trends, articulate the value to the market and envision the marketing plan.  On the other had the role is very focused on the minute -- ensuring that engineering is day by day fulfilling the requirements.

From identifying problems to be solved by the new product (or solution), to competitive analysis, to product roadmaps and strategy there are definite touch points in product management that have to follow along a project management type timeline.  Pragmatic Marketing has famously articulated the steps common to the process in their Framework.

The functions of the job are normally tracked with Microsoft Office applications including Project, Excel and even PowerPoint and Word.   This means difficulty in keeping the various sources in sync and reinventing the templates for each new release and offer.   The seeming answer to the problem was a new class of software called PLM (product lifecycle management).  Just as ERP (Enterprise Resource Management) automated the back office functions including finances and CRM (customer relationship management) automate interfacing with customers, PLM seemed like a brilliant solution that was desperately in need.

In a nutshell, PLM helps manage the entire lifecycle of a product or service from idea, through market analysis and need analysis and into design and manufacture, then to service and disposal. PLM connects people responsible in each steps as well as tracking necessary data, processes and business systems.  In other words PLM automates and provides a product information backbone for the product development and delivery process.

By helping to automate, streamline and track the process of product development costs are reduced, time to market shortened and over all over sight and tracking greatly improved.  The cost to implement is paid back quickly (if PLM is implemented properly), so this seems like a holy grail for product management.

So why is IBM abandoning ship?

IBM jus sold its PLM offering to Dassault Systèmes (DS).     Sure, IBM says this is a strategic move and that DS is a partner -- but since IBM has been a market leader in PLM does IBM see the handwriting on the wall?  Is PLM an idea that just did not make it?

CIMdata,  a PLM Consulting firm, writes that the PLM market grew 6.7% in 2008.   That was the good news.  CIMdata repoted that in 2009 PLM experienced a  12% decline!  Revenue went from $15.96 billion in 2008, to $14.03 billion in 2009. This decline was larger than originally forecasted.

 I'm not heralding the death of PLM.  I'm a big proponent.  It helps to standardize the process across product managers and indeed the entire organization.  It is very cost effective.  Still, is the sale of the IBM offering the canary in the coal mine?  (Miners used to bring canaries into the mine with them and if the bird died they knew the air quality was declining, and left before they died themselves).

CIMdata states that the 2009 information is preliminary and reflects currency exchange rates—primarily the euro versus the dollar rather than a real decline in sales.  CIMdata’s preliminary estimates indicate that investments in all sectors experienced declines in 2009 over 2008.

Is that true or is it trying to cast a good light on a bad revenue stream?  CIMdata report (in their press release):

"Comprehensive cPDm dropped to $2.7 billion, a 10.9% decrease. Investments with cPDm Systems Integrators/VARs/Resellers decreased 10.6% to $3.87 billion. Digital Manufacturing investments declined 12.7% to $445 million. Multi-Discipline MCAD dropped 12.4% to $2.57 billion, while investments in Design-Focused MCAD declined 20% to $1.83 billion. The Simulation and Analysis sector of the Mainstream PLM market experienced a more modest decline of 6.4% to reach $2.13 billion in 2009 while Non-Bundled NC had a 19.1% decline to $475 million. The distribution of these investments as components of the full Mainstream PLM market is illustrated in Figure 1.:






Figure 1—2009 Mainstream PLM Market Sector Distributions (Millions)
(Market information represents CIMdata’s estimates)

"Mr. Amann commented, "While 2009 reflected a downturn in new PLM investments, companies retained maintenance and continued to spend on services in support of PLM activities already underway. Continuation of PLM programs indicates that more companies recognize the value that PLM provides in helping them maintain their competitive position during difficult economic times. Hardest hit were small- to medium-sized businesses who tend to be more subject to credit and cash flow issues. Many small companies had to stop their PLM investments while larger enterprises had the resources to sustain programs that were already underway."

"Ed Miller, CIMdata President stated, "Even in economic downturns, those companies that sustain investments in PLM can become more efficient both by reducing cost and better leveraging existing resources. Importantly, investing in PLM helps position companies to develop and deliver market-leading products as the global economy improves.""

I hope they are right.  Perhaps this is a blip caused by the economic times, but it is something to be aware of if considering PLM.

Disney on the cutting edge again (or is that "still"?)

CRM at the Speed of Light, Fourth Edition: Social CRM 2.0 Strategies, Tools, and Techniques for Engaging Your Customers (Unknown Series)CRM at the Speed of Light, Fourth Edition: Social CRM 2.0 Strategies, Tools, and Techniques for Engaging Your Customers (Unknown Series)My last blog discussed how smartphones will soon suprass PCs as the main way we surf the 'net.   In turn this access gives vendors a whole new way to personalize service to us as consumers.   Using GPS, CRM and unified communications we'll be able to shop smarter and vendors will be able to pinpoint personalized offers to us based not just on our past buying history or our demographics (where we live, our age, etc.) but actually by knowing where we are and what we are doing.

Big brother is watching!

So how does Disney tie into this?   Disney is working on new technology for its theme parks (Walt Disney World, Disneyland, Disneyland Paris, Tokyo Disney Resort and  Disney Hong Kong) .  Disney has not announced this, but a former executive is on record as stating that Disney is working on wireless-communication technology to tailor theme park offerings to the likes of individual visitors.  This same source claims that Disney is spending $1 billion to $1.5 billion on this project, so it is considered a "game changer" by them.

What types of things does Disney plan to do with wireless technology?   CRM of course!  They will offer Disney visitors all kinds of enhanced services that will shorten waits on line, customize the "experience" of a Disney vacation all the while they are compiling information on you and your family. . .what rides you went on, what restaurants you visited, where you stayed. . .  this information is then used to offer you knew vacation offers tailored to your likes.


The person in charge of this herculean effort is Nick Franklin (pictured left), head of global business and real-estate development for Disney's theme park division.    Franklin has had an exciting career with Disney Franklin as well as serveing as a member of the Executive Committee for the Parks & Resorts segment overall. "This is not the typical opportunity that gets described in business school," he said. "My job is to help envision the next generation of Disney experiences around the world, which is pretty cool."

I'd say so!

I'll bet back in his days at the investment banking at Goldman, Sachs & Co.  Franklin could never have dreamed he'd be working in the "House of the Mouse" working on new generation entertainment venues!

But I digress.   The rumors (and that is all we have at this time, rumors) say that Disney's NextGen (code name) CRM technology push will include keyless hotel-room doors to rides and shows in which the experience varies based on an individual guest’s preferences.

The main source of information on this oh so secret development project is Michael Crawford, publisher of Progress City USA. Crawford writes that Imagineers (Disney's name for engineers)  hope to use RFID technology in concert with their new Fantasyland attractions.  RFID stands for Radio frequency identification.  RFID tags can be incorporated as a chip in a Disney park pass (for example).  RFID can track your ID on your Disney "passport", it can be your room key to your hotel room and even be used to enter mass transit like the monorail or be used as an in park credit card.    All the while Disney knows where you've been, what you've done, and where you are now.

Pretty slick!

Disney could even use the personalized card to allow attractions to access personalized information about each guest, thus personalizing your "experience."  This was somewhat tested out last year with Disney's  Kim Possible World Showcase Adventure at EPCOT in Walt Disney World Resorts.   This features an interactive experience where guests are given a "Kimmunicator" (Kim Possible is a Disney cartoon about a girl who is a spy) found at kiosks in Epcot. These interactive devices use  technology which gives clues from the Kim Possible characters to find "villains" they cna track as they wander around the theme park.

Each adventure is unique, personalized.  CRM, right?  Right!

RFID should be used to make each vacation to a Disney theme park totally random and new -- thus removing the "we've already been to Disney and it's boring, can't we go somewhere ELSE this year?" argument moot.  At least that is the hope of Disney.

It just struck me as interesting that this news hit the Orlando Sentinel today, the very week I blogged about Smartphones and CRM.   As I mentioned in that blog -- the world is moving at a very fast clip these days!

Smartphones and CRM

Have you ever noticed that the world just seems to be changing faster and faster all the time?

I'm a big fan of the British television show, "Doctor Who." The premise of the show is that a time lord travels throughout time and space -- from ancient times to tens of thousands of years into the future.  "The Doctor" is a mysterious time traveler whose life is often lived "backwards" as he appears in places where people may know him, but he hasn't met them in "his" life yet.  It must be very confusing.

Sometimes I can relate to the Doctor.

The way our world is moving so quickly it is hard to "keep up" with the technology and how it changes us.  Technology changes the way we work, how we interact with our own families and how we shop.

The idea behind CRM (customer relationship management) is that vendors, to be successful, must know who their customers are and why they buy what they buy.  In the "old days" a small town might have had one butcher, one baker and one candlestick maker.  A customer was known by name and the vendor (say the candlestick maker) knew what kind and color of candle Mr. Jones bought or Mrs. Smith acquired.  CRM was just a part of the small customer base and the small proprieter.

Today we live in a world of Wal-Mart and Best Buy, not to mention Amazon.com and Buy.com .   We customers are anonymous, and if we are anonymous we may only shop one time and never return.  To gain our loyalty these large retailers must understand "who we are" by our buying habits, our demographics and our past buying habits.

Have you ever noticed when you visit Amazon's website that (if you've shopped there before) the website recommends new purchases to you based on what you've bought before?   Smart marketing, and a good application of CRM.

The days of shopping online via our PC alone has already changed and CRM must change along with it.

Gartner Group, a research company specializing in high technology,  is predicting that mobile phones will overtake PCs as the most common way to access the Internet by 2013.  This has both a huge impact on what vendors will require from CRM, as well as a huge opportunity to sell us more, while also making us happier by meeting our needs in "real time."  Customer loyalty and customer retention benefits from CRM tied to smart phones is an enormous potential -- and the holy grail of CRM.

Smart phones use both push and pull technology.  Pull technology is when a phone user goes online via the phone and searches for an address or driving directions.  They have proactively "searched" (or pulled) data from the internet.  Perhaps they are looking for a nearby drug store.  Perhaps they are searching for a certain product (perhaps a Wii game for their child).  As the person runs the search CRM is at work.

Now "push" technology comes into play.  An add for a Wii game sale is sent to the phone via GameStop or Wal-Mart.  The user checks local prices and sees how close each vendor is to them (pull technology.  GameStop is say 1/2 a mile away and Wal-Mart is 3 miles away).   A 15% off coupon is sent to the phone by GameStop (push technology).

And so it goes.   The future is the past, and soon the mega-stores may know you as well as the local candlemaker ever did.

The potential value of combining CRM, smartphones, GPS and unified communications to empower the customer while ensuring even higher customer loyalty is staggering.   The opportunity is there, if CRM is properly utilized.  The winners will do it.  The losers will be gone.

Since CRM (customer relationship management) is supposed to mean any one or any system that interacts with customers one would logically think that email marketing would be an integral part of any CRM solution.

But it isn't.

Email marketing has been around as long as email itself has.  Yet most companies who do email marketing for customer retention (up selling and cross selling) or acquisition (acquiring new customers) do so blindly using third party lists or hobbled together lists.   Some may use Templates found on Microsoft's template section of their website.  Others use a variety of software or internet based solutions -- and there same to be a plethora of them out there.

Most companies seem to use the axiom:  throw enough mud on the wall and some of it is bound to stick when sending out corporate marketing emails.

No tracking of the ROI (return on investment).  No knowing if you are "ticking off" your best customers.  No knowing how many hit the SPAM filter.  No knowing how many people get multiple emails from you (annoying them).  Bad email marketing hurts every other aspect of CRM, and does more damage than good.

This is mass emailing.  My friend, Sundeep Kapur (other wise known as the Email Yogi) has been an email marketing guru since around 1999 and he has outlined "Seven Stages of eMarketing" in a  Whitepaper – available, with just a simple request.  The first is exactly what I outlined above:  mass marketing with the hope someone, somewhere will read it.

I don't want to "give away" everything in Sundeep's excellent paper, but suffice it to say that email CRM isn't any different than CRM in general -- know thy customer.  You must target your existing customers and potential customers by market segment (customer segmentation), by demographics, by buying history, etc.  None of this is rocket science, but it is all hard work -- that results in qualified leads that generate new customers.

The more you can customize the email to the prospect the better.  And if you can make it FUN even better still!

Customer segmentation allows you to target your email messaging.

Once you've created an email offer, newsletter, etc. it is a good idea to set up two separate tests with similar, but not identical, offers.  The test audiences must be the same segmentation for this to work.  Try to make an offer that requires a response (buy in) before the scroll down point (above 400 pixels in height) and if this is the first email one of those should be an opt in to get more emails from you.

Design the email using HTML and a plain text file.  If you start getting fancy with CSS or flash -- even Java -- many email programs won't read it properly.

When CRM and email marketing work together it is a beautiful thing.    Email marketing can also extend into social networking (Facebook, MySpace, Twitter) via RSS and SMS.

Sundeep works for my old boss, NCR -- a leader in retail and hospitality solutions.   Software solutions vary based on your own corporate needs (and budget).  RWD uses Constant Contact.  The design of emails is pretty easy, but it isn't your standard Windows "look and feel" so there is a learning curve and difficulty if you want to copy or paste from it into another program.   They do offer a free 60 day trial, so if you are new to email marketing take a look at them and try them out.

More mid-range companies might look at Gold Lasso.   The UI is also not the easiest to use, but they do have some analytics thrown into the mix.  Also good in the mid-range and even enterprise (big) company range is Responsys.  JupiterResearch awarded Responsys the highest combined score in “market suitability” and “overall business value” among all enterprise-oriented email service providers.  It also ranked high with Forrester and Gartner (in a niche category).  The Enterprise level also includes the market leader, Cheetahmail (now part of Experian).

Cheetahmail is the most entrenched, and it is very feature rich.  The UI (user interface) suffers from some of the same issues as Constant Contact and Gold Lasso.

In a future blog I'd like to delve into how well email marketing soltuions tie into legacy systems (the back end CRM, ERP and industry specific apps which hold the wealth of customer data) -- both from a push and pull perspective.

The World is Upside Down

This blog spends a lot of pixels on the topic of CRM (Customer Relationship Management).  How can companies manage their customers.  How can we keep current customers loyal and retain them?  How can we find new customers who will be profitable and love us and stay with us?

Simple answer?

You can't.

You don't really manage customers anymore -- if you ever did.  Perhaps the idea was always unreasonable.

Customers are people.  Newsflash.

People are unpredictable.  People are not, by nature, loyal.  If they were the divorce rate wouldn't be at 50%.

People only care about what they care about NOW.  Today.  If you are selling Christmas trees to Jews they won't care.  They don't use them (well, some do but not many).

Customers buy what they WANT to buy and the key today is not in trying to manage your customers but in understanding who they are, what they want (or need) and making it easy for them to be in the right place at the right time with the right story.    Story is key here -- because customers need to be able to find what they need when they need it.

And it needs to be simple.  Simple for customers to understand what your widget is.  Easy for them to understand why it matters to THEM (not you, they could care less about you) and then make it easy for them to get to the end result of what they want.   Intuitive (like a iPod, like a GUI (graphical user interface) versus a c: prompt).

The customer is now in charge of the world.  Realize it.  Embrace it.  So now more than ever is "know thy customer" and realize that while you need them, they don't need you.  Unless you give them a reason to need you.