I have lost count of the times I have heard from colleagues in sales meetings, from peers and from friends that the customer they visited last week claimed they were very ‘traditional’; that they were not interested in technology and that their meeting was, at best, not as productive as they had hoped. Now, as frustrating as it is to hear from a prospective customer that they are not interested in your product, I am left wondering what drives a company to stick to it’s ‘traditional’ business practises and processes. What is the value in taking that position? What are the results? What is it really driven by?
I can fully appreciate a ‘traditional’ company’s viewpoint. They are proud of their history, their ability to weather the economic and regulatory storms experienced over the years. Their business practises have worked successfully for xx years. They are in a comfortable position and have no intention of fixing what isn’t broken. I can see that this approach has worked, account managers would not be talking to them if it hadn’t. I would like to propose that the true driver that lies behind this strategy of not acting on market trends, or being a ‘late adopter’ of technology is perceived risk and cost along with the extra workload and mindset change required to bring IT out of functionality and into business enablement.
To address these challenges is a huge task for any CIO/ITD, and it is an ambitious account manager who approaches a traditional company with an emerging technology opportunity. However, I feel that any officer of any organisation has a duty to their stakeholders to seriously consider all options available to them. If only to ensure the further success of the organisation, and in return the jobs, families and livelihoods that depend on that success of not only their organisation and employees, but those of their suppliers and partners. They also have a duty to society as a whole to explore as many ways as possible to reduce their environmental impact to ensure there is a market in existence to serve. To articulate this need, and to provide an organisation with the products and services needed to succeed now and in the future, a partner and account manager who sells with integrity is needed. Someone who truly has the success of his/her customer as their prime motivation – not their commission cheque at the end of the month (more on this in my next post).
The thing that worries me is, that despite however sceptical the CIO/ITD is about emerging technologies, social media, unified collaboration, that scepticism does not stop the market’s perception and expectation for those services and that infrastructure to be present. If you take a look at how society’s perception of and demand for technology has changed in recent years, you can see an exponential trend towards adoption of new technology. For example, Christmas 2009 in the UK. Society was fed up of being spoon fed manufactured pop music by a certain Simon Cowell, and fought back through social media. I must admit to taking part in this ‘real music revolution’ and being one of the 502,000 people who bought Rage Against The Machine’s single driving it to number 1. I saw this as amazing. The UK’s society’s culture of easy listening pop music being the most popular of all for the busiest shopping week of the year, turned on it’s head by a social media campaign. The only people who really gained from this financially were the band, who were surprised as anyone that their single had been chosen, and were completely separate fro the campaign.
Another example directly affecting consumers focuses on contact centre strategy. Having recently moved countries I have had the pleasure of organising a new mobile phone contract and number. With some organisations this is a smooth process, however, with a certain national carrier in my current location, nothing could be further from the truth. My view may well have been tainted by being exposed to cutting edge technology through my occupation, but I can honestly say that the service I have recently received from other organisations (public and private sector) blew these guys out of the water. When telephoning customer services (the only contact option, and at a cost not included in my call plan) I found it insulting to be placed in a queue at position 83 and told my expected wait time to be approximately 36 minutes. Quite simply, that is not acceptable today – let alone next year or in 3 years time. When contacting an organisation I expect, as a valued customer, the option to be called back by said organisation when I rise to first place in the queue. I expect the option to email, SMS, MMS or video call that organisation. A multimedia contact centre with workflow management is in my view, an essential piece of infrastructure in order to attract and maintain a loyal, spending consumer base. Full stop.
Not all ‘traditional’ companies take this viewpoint however. Take for example, Marks and Spencer. An organisation that was very nearly a casualty of the recent economic crisis. One that is very proud of it’s heritage, customer service and traditional ‘feel’ of it’s stores. Certainly not one you would expect to be using cutting edge technology in their supply chain to improve customer experience. News for you – they do. M&S have so far used over 200 million RFID tags on retail items destined for their stores. Having spent resources driving customers to as well as, lighting, heating and staffing their stores and products, for a consumer only not to buy due to the lack of right size items in their store is hugely costly. M&S have realised this. By using real-time inventory information they are able to move away from traditional timed deliveries and towards a more demand driven replenishment system.Although historically they suffer less than average slippage, further reduction in this and the ability to put the right items in the right place at the right time must be reducing logistic and storage costs across the board. The impact to them must be huge both fiscally an environmentally.
Also look at Volvo Trucks. This truck manufacturer has certainly been at the front of safety technology over the years, but never have they made an impact anywhere else in any market place (marine aside). A fact I find heart warming is that they have a Wireless Car business unit. This unit develops bleeding edge wireless convergence technology for cars, and reports directly into IT. Volvo Trucks see IT absolutely as a business enabler. They count BMW amongst their customers, with their popular Telematics systems a direct result of with Wireless Cars BU.
So – to sum up. I fully respect traditional value in organisations. They certainly have their place in business ethics, HR policy and governance. However, technology adoption and those values do not good bedfellows make. I have been told numerous times that doing nothing is the biggest risk of all – and I could not agree more. How much do you value your organisation, your stakeholders, your current market position. At the very least, you owe it to yourself to look at the options. Be open minded . . . . . . . . . .
For further reading on managing risk, take a look at Gartner Analyst Mark McDonald’s thoughts on ‘Managing Risk Up’.
http://blogs.gartner.com/mark_mcdonald/2010/09/10/manage-risk-up/
Steve K. Stockholm