Thursday, May 28, 2015

The race for messaging supremacy

David Gee finds some messaging platforms that you may not know about, including one that may win the race.

Asana, Hall, Jive, HipChat, Slack and Sqwiggle. It sounds like a group of superheroes that are going to save the world but in fact, it’s a band of new messaging startups – most from San Francisco – aiming to be the ‘go to’ product for your team to work more effectively.

These startups are making email look dated, which it is. These days, our inboxes are full of messages that really aren’t that important.

Many of these messaging products are free at least for the first versions but that’s about where the similarity ends. Right now, if you were doing a short list of these newcomers, then it’s likely that HipChat or Slack would be on that list.


Slack vs HipChat

HipChat was created by Australian firm Atlassian and has a simple interface with reportedly good customer service. But the market seems to be backing Slack, which has 750,000 active users and growing. It is clearly a market favourite with a staggering market valuation of $2.8 billion. Note that Atlassian, with a full suite of products, is valued at $3.3 billion.
Slack is essentially a group messaging tool that has memory which is searchable. All the conversations are organised into different channels for public versus private and group discussions.
This is a great example of success coming from failure – in this case an online game, Glitch that was abandoned and messaging became the focus.

What makes Slack different is that is not just a simple chat tool. At first glance it provides for synchronous messaging across all your devices, including the Apple Watch. But it’s much more than that, and allows you to stay within Slack to read all messages, alerts, tweets etc.

Slack integrates your messages and has strong integration capability with other services such as Google Drive, Hangouts, Dropbox and Github. It also allows users to create a searchable virtual archive service.

These integration and archiving capabilities are where it stands out from other platforms. If you receive tweets, emails or a hangout from within Slack, you don’t need to jump in and out of different applications.

The product also has an RTM API, which provides real time event updates on everything that occurs both from servers and team members.

Improve customer experience, social media listening
It’s frustrating when you have had a poor customer experience and then you tweet or share this on social media. Afterwards you receive a slow response or worse, no response at all.

Products like Slack are not built for social media monitoring but they allow for a smart integration when you mention a product or company name.

For large enterprises that receive volumes of tweets, this is where a product such as Slack can help to prioritise and share this alert in the appropriate forum and team.

That’s where the listening and responding comes into play. And it’s important to know the history of any prior dialogue, which is where Slack’s archive feature is useful.
 
The empire strikes back

Although Slack has made some inroads with a great product, it hasn’t quite won the race yet.

Microsoft is not going to give up this battle easily and is the corporate incumbent with their customers already using Lync, Yammer and Skype. Google for Work will also be wanting to play in this space and although the search giant failed with Google Wave, I would expect the company to be in the game.

Facebook for Work is also one to watch.This is being tested, but it is not that easy to get over the name – which I would believe doesn’t belong in the corporate world.

Finally, a dark horse would be have to be LinkedIn, a company with aspirations for taking its current platform to a different level and inside the building so to speak.
 

Personally, I would vote for Microsoft, mainly because it has Office 365, Yammer and SKYPE for Business in its stable.

So where do these products fit in your roadmap? Tools such as Slack can help improve customer experience. Indeed, they can be superheros inside your business.

But products like Slack are currently being used heavily by software coders and developers and not 
by large enterprises so perhaps they don’t yet fit into your corporate IT strategy.

Information overload is a big issue and these products don’t address the root cause of the problem – humans need to interact but the sheer number of channels that are at their disposal means that decisions are possibly being made without the right information.

I suggest that organisations evaluate how their existing tools can operate in the same manner as these new entrants. But I’m not being ‘slack’, I just want that same integration between tools for some parts of my business. I’m just not sure it is needed everywhere.

For me, when the role these tools play is based on knowledge and the need for collaborative intelligence – then they make more sense. Conversely, if these tools play a 'widget processing' role, they will perhaps create more distraction than value.
 
David Gee is the former CIO of CUA where he recently completed a core banking transformation. He has more than 18 years' experience as a CIO, and was also previously director at KPMG Consulting. Connect with David on LinkedIn.

Thursday, May 14, 2015

What’s all the fuss about messaging apps?

Who's winning the 'battle for our thumbs' and what are the value and risks of messaging for corporates?

Emojis, picture characters that emanated from Japanese messaging systems, have found their way into our everyday lexicon. However, there has been an increasing focus on ‘attracting our thumbs’ with the uptake of messaging systems booming worldwide.

Already, the number of SMS text messages has been outstripped by messages sent using technologies such as WhatsApp. Global and local telecom companies are losing a battle to retain this business and ‘free’ tools are winning over consumers.

Startups are also launched new apps. One such app is ‘Slack’, which is being backed by venture capital firms, Andreessen Horowitz and Accel Partners and only has 8000 users so far. Apps like this are competing against Facebook’s Messenger with its 600 million users.

This battle for our thumbs may eventually cause many of us to have a repetitive strain injury which in time, may be avoided with a wave of wearable technologies being created to help us read and respond to messages.

These apps all have very similar features and you often choose to use an app to connect with a group of friends. It is quite common to have millennial that use two or three of these simultaneously.

So it’s not surprising that there are a few apps with 600 to 700 million users. There is a degree of overlap, but it would be hard to accurately measure.


In essence, these apps have evolved from simple text messaging that replaced SMS as a free service and added picture sharing and voice messages. There has also been selective rollout of video conferencing and VoIP functionality, which tends to vary by country.

For telecommunications companies, this is the second nightmare after surviving the rapid uptake of Skype, which is now owned by Microsoft.

Text MsgVoice MsgVideo conferencingFree VoIPP2 paymentsUsers (millions)OwnerNation
LineYesYesYesYes*Yes600MNaverJapan
ViberYesYesYesYes*Rumours280MRakutenJapan
WeChatYesYesYes*Yes*Yes440MTencentChina
MessengerYesYesNoYes*Yes600MFacebookUSA
WhatsAppYesYesNoYesRumours700MFacebookUSA

* This feature is country by country limited

P2P payments
It’s a natural extension from ‘friend to friend’ messaging to making small P2P payments using these apps. What started off as the purchase of emoji stickers is now evolving into full-blown electronic commerce and it’s certainly difficult for banks to be part of this discussion.

For instance, Japanese company, Line Corporation – you may have seen its mascots in local Samsung stores – has a thriving business selling games, taxis services, and food delivery using ‘Line Pay.’ This is in addition to its free messaging, voice and video call service.

Enterprises are missing out
Big corporates are directly affected by these disruptions, but are not the targets of the messaging companies. It seems like an eternity since we thought of corporate tech as being ‘innovative’. There is just no R&D that is being spent by the major technology companies on such messaging technology.
When we try to tackle improvements, it has been piecemeal and it is two different realities. We support customers using the phone and online and indeed, we force them down channels that we support rather than supporting the channels that they already use. The winners will be the companies that try to meet the consumer in their own territory.


I’ve heard of users in China using WeChat and voice messaging to track their local deliveries. Even large logistics companies that move shipping containers from China around the world such as Kuhne and Nagel and trialing this technology.

US company, eQuest, recently integrated its corporate messaging system into WeChat. Users sign up to receive job alerts and submit their CVs using the system. It is really is a good example of what enterprises should be doing.

Dutch airline, KLM, is testing WhatsApp so its frequent flyers can ask questions regarding booking requests, upgrades, and seat selections.
I can forsee that this trend around enterprises embracing consumer messaging will continue to grow.


Mining your life
There is nothing that is ‘free’, and in return for using these apps we give up significant information about yourself and your network. When this is executed well, it will be welcomed and we will then start to embrace the payments options that are also offered along with location specific offers.

Let’s remember that our friends at Facebook own two of the biggest players in this space. At the moment, the battle for the biggest share of the messaging market will be fought between Facebook, a US company; and China’s WeChat.

Users of these apps are not always aware of the geopolitical aspects of this battle and it is likely that there will be further security breaches.

But this shouldn’t stop an increased awakening in the corporate market about the value and the risks of messaging.

Organisations essentially have two choices. They can continue in their current mode and strive to improve customer experience but force users to use a 'corporate chat tool'; or embrace the fact that users are already using these messaging apps and figure out appropriate ways to use this channel.

For me, it is like having two separate ‘rooms’, one room where the customers are already talking and the second room, which is just for interactions with the corporate. There are times that due to privacy or other regulatory constraints that a messaging tool just can’t be used.

The trick is to engage with the appropriate tool for the right dialogue and engagement. I’d prefer to be engaging in the room where the customers are already talking.

David Gee is the former CIO of CUA where he recently completed a core banking transformation. He has more than 18 years' experience as a CIO, and was also previously director at KPMG Consulting. Connect with David on LinkedIn.

Bikram Yoga as a Metaphor for Business Transformation

The yogi’s guide to business transformation.

I’ve always been a glutton for punishment. I have completed more than my fair share of hard and complex transformations, and I have also sweated my way through a number of those 40 degree bikram yoga classes, despite invariably wanting to leave after the first ten minutes.

The two aren’t really that different.

If you have never tried hot yoga, then this may sound like nonsense, but stay with me.
Bikram, or hot yoga, is a series of 26 poses and breathing exercises. It ups the intensity by requiring the series be done in a studio heated to 40 degrees celsius with 40 percent humidity.

It is a masterclass in staying balanced in the face of discomfort, and has more than a few lessons to offer business executives leading their organisation through a complex transformation.

Start with a solid foundation
In bikram yoga, you start with your feet together and your legs strong. It is all about building your core strength, not about losing weight or looking beautiful.

Similarly, a true transformation has to have a solid foundation, as this will be tested by the will of the organisation to drive towards an objective and not stray from this mission.

Every transformation has to have a convincing objective that everyone believes in and is committed to. Without these foundations in place, a transformation will not succeed.

Keep breathing
Transformations are taxing on the enterprise, as business has to stop many other activities to free up necessary bandwidth to achieve the sustained focus that deep reforms demand.

In the yoga studio, you have to breathe and smile. In the office, not taking that deep breath is always a mistake when you are in the midst of a transformation. Relationships between individuals are often strained as forces work against each other.

Smiling, even when you are straining, makes a massive difference.

The front row must lead by example
The last thing a yoga class needs is for the instructor to waver.
Similarly, transformational leaders are visible out in front, and individuals naturally follow their example.

The last thing you want is for the person in the front row to be seen to be shaking.
Being a visible role model is all part of a successful transformation, and it is impossible to succeed when the front line is not looking both confident and competent.

Don’t over-stretch
In yoga you have to use your judgement to gauge how far you can push your body so nothing breaks.

I’ve seen and led project teams working weekends and overtime for a continuous period of 18 months or more. Stretching is not always bad. The more you stretch the more your flexibility grows.

But push too far, too fast and injuries will follow.

Take time for recovery
A recovery rest in bikram yoga is called a dead body pose, or Savasana.

It is not about sleep - you don't have your eyes closed and you are not unconscious. In a recovery rest, you have to be aware and awake. This is a time for reflection and not just recuperation.

There are natural pauses that exist in yoga and in business and it is all about taking advantage of these when they do occur.

They are not always easy to plan for, but if you don’t let yourself take recovery breaks, there will be burnout.

Build your flexibility
A yogi is a person who practices yoga and has achieved a high level of spiritual insight.

In a similar vein there are people who are truly experienced transformers: they enjoy being uncomfortable and stretching beyond their level of flexibility. These are the transformation experts that adapt to change and take this into their stride.

These yogi types are not that common, but it is a learnt art that anyone can achieve it with persistence and training.

Becoming a transformer starts with changing yourself and in doing so, taking others with you.

Interview: Manutea Dupont, co-founder, ShopWings

David Gee speaks to Manutea Dupont about the technology behind the online shopping service
ShopWings' Manutea Dupont
ShopWings' Manutea Dupont
Leisure time is clearly our most valuable asset in an era where we are available online at most times of the day. We would expect that in the coming Internet of Things world, our humble refrigerator will self-replenish and perhaps give us some guidance around what and when to eat.

That might be a bit down the track, but already, companies like Samsung, LG and Electrolux have released smart fridges that include LCD touch screens and applications. They also include smart routers and WiFi connectivity just in case you want to tweet from your fridge or leave a message.

There’s also the GE FirstBuild fridge, which allows for customisation using 3D printers. This fridge comes with an open source app that enables you to check the contents from remote online locations.

But there’s one ingredient missing from the budding chef’s kitchen – a fridge that compiles your shopping list and perhaps even orders food for you.

Fascinated about how smart fridges of the future will connect with a shopping service, CIO contributor, David Gee, spoke to Manutea Dupont, the co-founder of Australian startup, ShopWings.

CIO: What is ShopWings' value proposition and why would I use this service versus shopping myself?

Dupont: ShopWings is about convenience and choice. There are two things which are unique in our offering. Firstly, the ability to shop from Aldi or Coles or Harris Farm from the same online platform in a few clicks.
Secondly, because of the way we operate we are able to make deliveries in as little as 2 hours with 1 hour delivery windows while most existing services have at best next day delivery and larger or less accurate delivery windows.

CIO: What technology drives this service?
We have developed proprietary technology that creates a seamless experience both for the customer and the shopper. The shopper in particular has access to a shopper app in which he or she will be able to get all the details about each order, the delivery time and address etc.

CIO: How important is mobile payments for the service?

Dupont: We are in the process of launching our customer app in the next few weeks. Mobile payment will of course be available on the app. We expect this to be an additional growth lever.

CIO: What inspired your startup?

Dupont: ShopWings has been inspired by our experience in Ride sharing where we connect riders and drivers together. We realised that with the peer to peer connection between a customer and a shopper, we were able to address the grocery delivery market which is one of the most untapped online markets to date and yet the one that will probably be growing the fastest in the next few years.

CIO: In terms of average basket size of your shoppers, what is the experience that we have in Australia versus overseas markets? Is the average basket size of shoppers very consistent week to week? Or does this vary depending on how shoppers use the technology to select items?
 
Dupont: The average basket size grows as we grow our business. As people try the service and use us again, they chose to switch to our delivery model and trust us with their whole weekly shop. Basket sizes in Australia are larger than in other markets as the market is quite educated when it comes to online retail.

CIO: ShopWings offer goods from a number of organisations, how did you choose these partners?

Dupont: Our objective is to help any retailer go online and offer our unique layer of convenience to 
their customers. We started with Aldi, Coles and Harris Farm which have very complementary offering as well as a good networks of stores that cover the areas we deliver to in Sydney.

CIO: What is your technology stack? What makes your technology special?

Dupont: Technology is at the heart of ShopWings. We are a software company providing retailers a logistics solution to get their products to their customers faster than ever before. This speed of delivery is enabled by the ‘sharing economy’ and smart phone penetration that allows us to locate shoppers and provide them with the tools they need to pick the relevant items.

The two areas in which we have invested the most are:
Shopper supply forecasting. We have to match – almost every minute – supply and demand. This means handling a lot of uncertainty on a lot of dimensions being the location of the shopper, the customer or the store, the availability of the shopper, the size of the order etc…To do this we have built a bespoke back-end system that forecasts demand depending on the different areas of the city.
Smooth end-to-end integration. We offer an end to end solution where customers are connected – through our front and back end, and shopper app – to a shopper available in that area and at that time.
The shopper has an app that allows them to pick the right items, organise the shopping list and directs him or her to the customer’s address.

CIO: What happens when an item is not available?
When an item is not available, then a shopper can call the customer through the app to offer a suitable replacement or ask for the potential cancellation of the item.

CIO: What human discretion is there for your shoppers?
While technology is crucial to help shoppers, they have to make judgement calls in the shop all the time. These are the choices that one intuitively makes when shopping in a store but it brings it to a whole other level of complexity when one has to make those choices for someone else. These may include finding the best alternative to a product, picking the best and freshest item every time, and making sure expiry dates are valid.

CIO: How does a customer deal with items that are damaged or soiled? Is that managed digitally or manually?

Dupont: The great thing about ShopWings is the fact that the delivery person is the person who also picked the items for you. That means that you can interact with him at your doorstep regarding any potential issue.

Happy shopping … bring on that smart fridge!
David Gee is the former CIO of CUA where he recently completed a core banking transformation. He has more than 18 years' experience as a CIO, and was also previously director at KPMG Consulting. Connect with David on LinkedIn.


18년 경력 CIO가 전하는 'CEO에게 직접 보고해야 하는 이유'

CFO가 CIO에게 보고해야 할까? 아니면 CIO가 CFO에게 보고해야 할까? 이 질문이 이상하게 들릴 수 있다. 데이비드 지는 최근 C-레벨의 보고 대상에 대한 흥미로운 대화를 소개했다. 



“CFO는 왜 CIO에게 보고하지 않지? 많은 사람들은 그저 웃어넘길 이 질문이, 얼마 전 시드니에서 열린 한 컨퍼런스에서 필자의 귀에 들려왔다. 처음엔 그저 세션 휴식 시간 티테이블에서 나온 얘기였다.

잠깐 스쳐간 말이었지만, 그 질문은 자리에 있던 모두를 놀라게 했다. 평소 같으면 시시한 말로 치부했겠지만 그날은 희한하게도 이 주제와 관련한 흥미로운 담론이 펼쳐졌다.

이야기의 발단은 젯스타 에어라인(Jetstar Airline)의 CFO 레이스 스트라우스의 발언이었다. 그는 자신의 회사에선 CIO가 CFO에게 보고하는 것이 보통이라고 언급했다.

그는 CIO의 입장에서 CFO에게 보고하는 것은 자신이 비즈니스와 연결되어 있음을 확인해주는 과정이라고 설명했다. 젯스타에서는 자신이 부재중일 때 CIO가 대리인 자격으로 회의에 참석하기도 한다고 스트라우스는 말했다.

젯스타 내부 사정은 정확히 모르지만, 시장에서 이들 기업이 차지하는 독특한 위치는 익히 알려져 있다. 젯스타는 퀀타스(Qantas)가 저가항공기를 운항하기 위해 설립한 자회사다. 이를테면 퀀타스 그룹의 ‘혁신 담당’이라 할 수 있겠다.

다만 기반을 저가 시장에 두고 있다 보니 그들의 혁신이란 것도 R&D와 관련한 것이라기보단 비즈니스 속도에 좀더 초점이 맞춰져 있을 것이다. 젯스타의 전 CIO 스테판 테임이 필자에게 들려준 이야기에 따르면, 이들 기업의 IT시스템 대부분은 아웃소싱 방식으로 운영되고, IT 팀의 전속 직원은 6~8 명에 불과했다.

스트라우스와 테임의 이야기를 종합해보건대, 젯스타에서 CIO란 보고 체계를 논할 만큼 전략적인 역할을 맡은 직책이 아니며, IT의 수장으로서 그의 최우선 임무는 관련 비용을 줄이는 것이라 짐작할 수 있다.

CFO와 CIO의 상하관계를 이야기하며 글을 시작했지만, 문제의 진짜 핵심은 ‘CEO에게 보고하는 CIO’에 관한 것이다.

CIO 임무의 꽃은 비즈니스 성장과 변화의 견인차 역할을 하는 것이다. 최근 맥킨지가 발간한 라는 제목의 보고서에 따르면, 비즈니스 전략 구성에 CIO가 가장 많이 기여할 수 있는 분야는 ‘성과’와 관련한 영역이었다.

질문을 다시 한 번 바꿔보자. “CFO에게 보고하는 구조에서, CIO가 전략을 구성할 수 있는 방법은 무엇일까?”

필자는 지금까지 두 번 CFO에게 보고한 경험이 있다. 그 두 번 다 CEO에게 직접 보고하는 경로가 너무 많다는 이유 때문이었다. 보고할 때면 필자는 CFO에게 최대한 정중한 자세로 대화를 청하며 프로젝트의 성공을 위해 그의 지지가 반드시 필요함을 강조했다. 물론 그의 개인적 우선 순위가 비즈니스 전반의 그것과 다를 경우에는 외부 영역들과도 기꺼이 협력했다.

이런 유연하고 현실적인 대처로 필자는 CIO로서 이사회 테이블에 자리를 마련할 수 있었으며, 비즈니스의 전략적 의제를 논의하는데 참여할 수 있었다.

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현업 임원진과의 관계를 맺고 이들에게 사업 추진에 기술이 필요함을 인식시키고, 궁극적으로 CIO를 전략적 인물로 인식하도록 만든 것이라 할 수 있다.

전략 구성뿐 아니라 비용 절감이라는 주제에서도 동일하게 적용할 수 있다. ‘관계’라는 맥락만 제대로 이해한다면, 어떤 비즈니스 활동에도 발언권을 얻을 수 있고, 궁극적으로 변화를 주도할 수 있게 된다.