Using video surveillance, and signals from shoppers’ cellphones and apps, retailers are tracking customers’ behavior and moods.
Corporate & Business Strategy Planning / Execution in the Post Industrial, Digital Economy. Want to know more? Visit me on LinkedIn: www.linkedin.com/in/karlwabst/
Curated by Karl Wabst
People make strategy much harder than it needs to be. For some, the problem is that they focus too much on the tools: environmental scans, SWOT analyses, customer analyses, competitor analyses, financial modeling, and so on. Other people get into trouble because they think it’s all about the broad, conceptual, future-oriented, big picture stuff — […]
First, understand the questions and then read Playing to Win
Without doubt, Tuesday’s historic decision by the Court of Justice of the European Union (CJEU) invalidating the EU-U.S. Safe Harbor Agreement has ruffled a lot of feathers in the business community, while reenergizing privacy advocates in the EU and abroad.
The path ahead remains unclear. Many consider this ruling as an opening statement by the EU in renegotiating an agreement with the United States.
US participants should remember that the EU sees privacy is a serious matter, not as an inconvenience or radical agenda. I suspect that if Americans experienced the breach of privacy and trust as the Europeans did in WWII, we would be more sympathetic.
In the meantime, Binding Corporate Rules (BCRs) and Model Contract Clauses are expensive options. Both options take considerable time and money to put into place and both have to be approved by the European Commission.
Stay tuned as this story develops. Until then, here are more resources on this topic.
Legal Harbor for US-EU Data Transfer No Longer Safe
Press conference. Frans TIMMERMANS, First Vice-President of the EC in charge of Better Regulation, Inter-Institutional Relations, the Rule of Law and the Charter of Fundamental Rights
Statement from FTC Chairwoman Edith Ramirez Regarding the European Court of Justice Safe Harbor Framework Decision
EU High Court Invalidates Safe Harbor Framework for Cross-Border Data Transfers
U.S.-EU Safe Harbor Invalidated: What Next?
Are You Ready for Binding Corporate Rules?
European Commission Article 29 Working Party
Working Paper 153 for Data Controllers: Working Document setting up a table with the elements and principles to be found in Binding Corporate Rules http://ec.europa.eu/justice/policies/privacy/docs/wpdocs/2008/wp153_en.pdf
Working Paper 195 for Data Processors: Working Document 02/2012 setting up a table with the elements and principles to be found in Processor Binding Corporate Rules http://ec.europa.eu/justice/data-protection/article-29/documentation/opinion-recommendation/files/2012/wp195_en.pdf
Becoming a digital organization requires fundamentally changing how you do business. Answering these nine questions can help break through the inevitable barriers. A McKinsey & Company article.
Answer the nine questions in this article after you can communicate your strategy.
To do that, your leadership should answer these five questions.
Know why you are going before you start. Ask your customers and listen to their answers first. Add value. Your shareholders will thank you.
'Smart' devices - from phones to drones - leave parties in the supply chain vulnerable to lawsuits.
Smart devices may leave your company open to liability due to not so smart policy choices. Be prepared for the transformation. Process matters.
Holistic big data strategies offer multidimensional benefits for companies, including potentially changing how employees and processes work.
Another article on the importance of a process to change how work is done, how data is monetized and how customers can have a better experience. This time the subject is big data.
The problem continues to be the organization's resistance to changing how things have been done around here for decades.
Address how change happens, one issue at a time in a marketplace that is changing faster every year, and you will be that organization that used to be relevant. You will be the organization that used to exist.
Today is the day that every merchant in the US is expected to have new terminals installed that can accept chip-enabled cards, the secure credit card technology that is ubiquitous in Europe and...
I just got off the phone with a client running a small medical practice. Her office manager has not gotten a new point of sale terminal in place yet.
Her questions are “am I breaking the rules” and “will I get in trouble.” The answers are no and maybe. The new terminals are encouraged, not required yet. You may be at more risk for liability in the case of fraud, but there are conditions and exceptions.
I thought some of you might also be wondering. Here are some links to give you more information.
New Liability Rules Encourage Investing in Chip Technology – They Don’t Require It
Chip and PIN vs Chip and Signature - What's the Difference?
Do You Really Need an EMV Chip Card Terminal?
At the EMV Deadline: Who's Ready, Who's Not
Many U.S. payment terminals not ready for chip cards -retail group
Chips, Dips and Tips: 5 Potential Problems With New Credit Cards
US tells EU's highest court: don't interfere with its data-sharing agreement.
If your company does business between the US and EU, you should tune into this pending ruling.
U.S.-EU Safe Harbor Judgment Day: October 6, 2015
In-Depth: European Union High Court Advisor Recommends Suspension of Safe Harbor
What’s Next for Safe Harbor?
With vendors and other external entities increasingly involved in business operations, it's time for a new look at third-party risks and solutions.
Risk and Opportunity are two sides of the same coin. You will miss opportunities if you do not manage your risks.
Bottom line, making claims about the greatness of failed strategies or judging the relative values of strategy versus execution are not useful expenditures of brainpower.
Trying to separate strategy and execution is an illusion. “No battle plan ever survives first contact with the enemy,” (Helmuth von Moltke, a 19th-century head of the Prussian army).
Start by answering these Five Questions to Build a Strategy (http://sco.lt/6lK4LB).
By comparison, industry research shows that 80% or more of IT budgets still go to “keeping the lights on.” The bottom line: to avoid getting mired in unproductive processes and instead become a digital success story, modern enterprises require an application-centric approach using open standards to deliver today’s business services. In short, enterprises must do a lot more with a lot less, and do it a lot faster.
I agree with the assertion that “80% or more of IT budgets still go to ‘keeping the lights on.’” I also believe that the article's focus on efficiency is just as wrong-headed.
Efficiency is only one of the generic business strategies. Efficiency dictates providing a service at the lowest price. Modern IT should not compete as a commodity if it is to be competitive, much less disruptive.
A strategy based on providing the lowest cost is appropriate for services, where little meaningful difference exists between competing offerings. IT shops also need to understand how to be effective at solving the issues that businesses face.
Here is a quick explanation of the difference between Effective and Efficient. Efficiency is "The degree to which objectives are achieved and the extent to which targeted problems are solved. In contrast to efficiency, effectiveness is determined without reference to costs and, whereas efficiency means "doing the thing right," effectiveness means "doing the right thing." http://www.businessdictionary.com/definition/effectiveness.html#ixzz3mgggcSPz
We can shop around for the best price, but businesses are more likely to judge IT shops on their ability to contribute to solving a business problem, not just to deliver something cheaper. For more on this read Porter's Generic Strategies - Choosing Your Route to Success https://www.mindtools.com/pages/article/newSTR_82.htm
When it comes to Mergers & Acquisitions (M&A), most due diligence focuses only on the financials. Later, management is usually shocked to find the degree of differences that exists between their two, soon to be merged, organizations. Conflicting cultures is one of the bigger challenges of M&A.
Cultural conflict is not only an issue in Mergers and Acquisitions.
Due diligence can save you time and money; identify risks and opportunities; help you see the need for change before competitors.
Here are a few examples. It is likely that you can suggest additional examples that you may not have thought of in these terms before.
In this article, we outline the obstacles to growth in emerging markets and the potential actions that sales organizations can take to get over these barriers.
If your company is looking to enter emerging markets, be prepared to change your own culture so the company produces products that will provide value to target customers. Trying to dump excess stock and seconds will not cut it anymore. You need a strategy before you go.
If the insurance industry doesn’t develop attractive products fast enough, PwC said, it could face competition from “disruptors” such as Google. “I can see Google being very creative,” Paul Delbridge, insurance partner at PwC, told Reuters.
Data loss insurance is an area ripe for disruption. Start discussing this now with your Board and CSuite before you have the need. Many businesses accept the risk without any hard numbers.
Do you need a policy? What is your appetite for risk? Can you list your data assets? Can you put a monetary value on the data that your company collects, stores, and shares? How much is your customers trust worth to you?
Many companies are surprised at how much risk they face from the loss of data. They may be even more surprised at how ill prepared the insurance industry is for a demand that is widely acknowledged.
The real surprise, though, will be how poorly prepared management teams are. Do you have a sound governance program in place that will satisfy the scrutiny of an insurance carrier? Scrutinize the last five years of findings from compliance audits. Ask the questions now.
This is not an IT issue. It is just business in the 21st Century.
Cyber Insurance Policies: Are They Worth the Money?
Insurance 2020 & beyond: Reaping the dividends of cyber resilience
Work in a rapidly changing market? Need innovative solutions to tough problems? Don’t keep doing the same old thing. Get curious.
Internal consulting teams may provide benefit to both the consultants and the company - if both follow the rules. If not, the experience can be costly for the company and the career of your internal consultants. In a tough economy, willingness to accept additional risk is hard to come by.
This article presented the case for establishing an internal consulting team. There is another aspect to consider. Take time to consider the view of the people you will ask to perform this role.
The internal consultant should ask what is in it for me. If not, you may not have the right stuff.
If you think this sort of work would be rewarding, here is some free advice. You are essentially starting a business. As an entrepreneur, you need to understand the professional and personal risks and benefits. This will greatly improve the chances of success.
Internal consultants have the opportunity to see the company from multiple points of view. This is an opportunity not afforded to most employees. It provides great perspective but can also require the internal consultant to clash with internal politics. This is not a path for the faint of heart.
Those who desire the routine of going to the office, doing their job and going home on time should not apply. Understand your aspirations before proceeding.
Being an outside consultant in an organization has the advantage of objectivity but then, you are not aware of the internal factor, culture, which is the most likely to cause project failure.
Internal consultants may understand the culture but being part of it individuals may have difficulty challenging that culture.
Assess the company culture and be sure that management understands the role and accepts the fact that your job is to determine whether change is appropriate. If change is your recommendation, be prepared to make the business case.
Be prepared for a career as an agent of change. Your story must be persuasive and move people to take action.
Convincing coworkers to take a risk based on your opinions and evidence takes more than a passing appreciation of the psychology of resistance. While status quo is not good enough in many competitive markets, the work of changing mindsets and attitudes is not business as usual for most employees. It is less glamorous than it sounds.
Leading strategy is hard, but rewarding. Feeling that burning desire to make a difference is a great thing but leaves you exposed in the wrong culture.
If you can find the work, you may not always be popular, but you will grow and learn faster than you might otherwise.
Oh yes, I almost forgot. Do not forget to have fun!
Many organizations still have hierarchical, siloed, and fragmented processes and cultures. In fact, having to cope with a fast-changing global economy has led many companies to create even more complex matrix organizations, where it’s actually harder to get the right people together for fast decision-making. As a result, we still need the Work-Out process to improve cross-boundary collaboration.
Increasingly demanding customers, with more choices than ever about where to spend their money, do not believe in corporate silos. How much is this “we have always done it that way” attitude costing you?
An ad-blocking company used a full-page ad in Monday's Financial Times to target yet another aspect of digital advertising that consumers might not appreciate: the impact of ad tech on their mobile-phone bills.
Ad blockers and Advertisers are on a collision course. Stay tuned as this evolves. Billions of dollars in investments are at stake.
Do the two sides risk losing more than they may gain by awakening the sleeping giant - consumers?
IAB Explores Its Options to Fight Ad Blockers, Including Lawsuits
198 million people around the world use ad blockers, which will cost publishers an estimated $21.8 billion in revenue this year. Both figures are likely to grow later this fall when Apple is expected to roll out a new version of its operating system for iPhones and iPads that will allow people navigating the web on its mobile Safari browser to block ads on publishers' sites.
Listen in as the industry wrestles with strategies to gain a larger share of consumers’ eyeballs and wallets.
The option of going to war with ad blocker software makers is risky. These products are popular because they fulfill a customer desire. Annoying your targeted customer is not a good tactic when you want their money and loyalty.
Using lawsuits to kill ad blockers runs the risk that consumers will resent the advertising industry as a whole. Even the IAB recognizes some of the valid reasons consumers choose to block advertisements.
Ad blocker users are still consumers. These folks are more likely to get mad at advertisers rather than the ad blockers. How then can advertisers change consumer desire?
Figuring out how to change the perception of advertisements is a better approach. Why? Changing consumer opinion is a core competency of advertising. It makes sense for the industry to go with their strengths.
Digital business transformation cuts both ways. There is potential for great gains but there is risk in trying to maintain old business models at the same time.
Newspaper publishers and the music industry provide a good illustration of what happens when you try to silence the voice of your customer. Suing grandmothers and college students did not increase their market share. In the end, it was the industries changed, not consumer behavior.
Stay tuned as this evolves. Billions of dollars in investments are at stake.
hulu is opening up an ad-free tier for $11.99 a month, but ceo mike hopkins expects a "majority" of its subscribers will stay on the ad-supported tier.
This may be a smart move. Their strategy appears to focus on improving the number of paid subscribers by targeting people who hate advertising enough to pay a premium price.
This research is counter-intuitive to the assumptions in many corporate cultures. Social skills are not a waste of time. Technology is not the path to an assured future.
It makes sense though. What does it mean to you? Stop trying to compete with the machines and be better at the work that has not lent itself to automation.
CxOs should pay attention and consider these results when hiring and planning strategies. They should also think about becoming more proficient in the use of social technologies.
At the same time, technologists should consider that opportunities for purely technology-focused roles are bound to get tighter. It brings to mind an old nerd saying - “You can be replaced by a very small shell script.”
OK, your replacement by a robot may not be imminent.
Start thinking about your strategy now if you are planning your career or for the long-term future of your company.
Get social! It may be the real value that you provide.
With mergers on the horizon, executives and employees who work within the finance function at service firms can’t help but worry.
M&A integration is notoriously fraught with dangers, many due to failure of due diligence and solid change leadership. With an often-quoted failure rate of 90%, everyone involved in M&A has cause for concern.
There are some good thoughts here. The big fish needs to absorb what is useful and adapt. Do not just assume that the ways work is done at the acquiring company are the best way to do things.
To survive life in the churning waters of M&A the new company needs to inspire, adapt and overcome.
Digital transformation is an unfortunate term. It highlights the word digital, instead of the idea of transformation. The real change is in individual mindsets and attitudes.
As people’s minds open up they are able, and more likely to innovate. Doing the same things, the same way you have always done them numbs the mind. A numb mind does not create competitive advantage.
Digital transformation is a joint effort that spans multiple organizational silos. It must be attacked, as a corporate or business strategy issue. This is not an IT or HR issue. Attempting to localize cultural change is likely to kill any chance at success.
The PC and Internet, cell phones and tablets have been with us for decades. You missed the point if you still think the thrust of digital transformation is the technology. It is a business thing. It is a survival thing. Leave the horse and buggy thinking to the historical reenactors.
Engage your people. Challenge them to participate in finding new ways to do business. It says a lot about what it is like to work for you if employees do not have some good ideas. After all, they have years of time on the job, training and other resources you have invested in them. See their value before your competitors do.
Under the board’s new standard — which the majority, to be clear, maintains is the old standard, revived — the test is whether a company has the potential to exercise control over a worker’s wages and working conditions, regardless of whether that control is used.
The workplace is changing. Keep an eye on this ruling. Whichever side of this issue you are on, the outcome will affect you. Do not be surprised if it is fodder for Presidential wanna-be debates.
Read more than one opinion. As more workers find themselves in lower paid jobs, it will affect your family more than you may have imagined a few short years ago.
FOX News version:
National Labor Relations Board Paves Way For Union Organizing At McDonald's And Others With Franchises, Subcontractors
"In the long run, this may turn out to be a benefit to Subway because now Subway has to come up with a new direction and some new thinking,"
Imagine that you just stepped into the CMO role at Subway.
There are plenty of problems and opportunities ahead. Some require leadership. Others require management. Every company needs both. One person, despite the myth of the Hero CEO, rarely possesses both skillsets.
It is important to note that Leaders may not have the word Chief in their title. Today, the idea or action that saves or sinks a company may come from a customer or commenter on social media.
Yes, the company has to restore trust in its brand but is that the big problem?
Subway had serious problems before the embarrassing downfall of its spokesperson. Sales were lagging due to strategic changes by competitors. The strategy of positioning itself as the destination for customized sandwiches was easy to copy.
Although it may be tempting, the public crisis must not detract from the search for a new business differentiator. This is not a unique situation. Every business should be monitoring its market position and thinking ahead. This is what leaders do.
Public apologies by organizations have become commonplace. This is now part of business as usual. In other words, this is management. Hiring spokespeople with inspiring stories to represent your brand has always been risky. There is an established formula.
As the public focuses on the headlines, many franchisees and their employees ponder the value of being associated with your company. Congratulations! You are the new Chief Marketing Officer! What would you do? What should the CEO be doing?
Leaders and Managers alike should watch this story develop. This is the reality of how businesses work today. The new normal is that transformation, transition and transaction are constant companions.
Research: For a Corporate Apology to Work, the CEO Should Look Sad
From Subway's Jared to Bill Cosby: How Do You Make Hiring a Spokesperson Worth the Risk?
5 Things You Must Do to Survive a PR Disaster
What Leaders Really Do
What do Managers do?
What Great Managers Do
Three things to avoid when facing change
While the consumer’s adoption of fitness bands and connected household appliances might generate more media buzz, the potential for business usage is much greater. Research from the McKinsey Global Institute suggests that the operational efficiencies and greater market reach IoT affords will create substantial value in many industries.
Smart executives are looking at the potential of the Internet of Things (IoT) for operational efficiency and use in B2B environments.
The use of sensors in the workplace creates a different set of questions and opportunities. Workplace monitoring is a hot topic, not just in the technology arena but also in HR, Legal, Organizational Psychology and your Boardroom.
It is a short hop from using sensors to monitor equipment and process to questions about monitoring people. This may sound like an IT project, but do not be fooled. Wherever there is opportunity for vast improvement, there is also high risk potential.
How will your employees feel about having their behavior monitored? What will unions have to say? What are the legal ramifications? Are there ethical considerations? Are there cross-border / international aspects?
Now is the time to perform due diligence. IoT is not the future. If your executives are not educating management or executing on IoT initiatives, ask them why.
Whether your strategy is based on cost efficiency or differentiation, there is likely a place for the IoT in your operational environment.
Should Big Data Be Used To Measure Employee Productivity?