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Customer experience strategy and innovation expert Woody Bendle is back today taking another swipe at big data with help in thinking through how to monetize it (vs. just parking it in the cloud and praying for rain). Here’s Woody!

Strategic Insight – Monetization Is the Real Big Data Dilemma – Woody Bendle

Unless you’ve been hiding under a rock for several years, you’re aware Big Data is a big topic! Just look at this Google Trends graph depicting search volume for “Big Data” the past five years.

Woody1

That’s one incredible upward trajectory wouldn’t you say!

But have you ever wondered why this topic is so hot right now?

In my opinion, we’re hearing so much about Big Data because of several related factors:

However, I feel the primary reason we continue to hear more about Big Data is due to very few companies actually realizing the purported Big Data promise – or what I call the Big Data monetization dilemma.

If you were to listen all of the sensational Big Data spiel out there, you’d have to believe that by simply having Big Data, your organization would automatically (almost magically) be smarter, faster (agile), more competitive, and ultimately, more profitable. And that’s just not the case.

What many organizations are quickly realizing is not all data are created equal.  Having a lot of this digital Big Data stuff being captured and stored doesn’t mean you can readily access it, analyze it, or provide useful answers to meaningful questions.

Unfortunately, this is the reality for most Big Data out there in the cloud today – much of it simply is not configured in a manner that allows for analysis. And, there really are no magical short cuts; there is a tried and true (but not necessarily easy) approach that will help you to realize its promise, however.

Three Strategic Questions for Monetizing Big Data

Just because storing your Big Data is relatively inexpensive doesn’t mean your Big Data strategy should be “Fire, Ready, Aim!” Have you heard anyone say something like this? “Let’s keep pumping all of our Big Data into the cloud and we’ll figure it out as we go.” If this is your approach, you will find monetizing your Big Data to be very costly!

If you expect to monetize your Big Data asset, there are three fundamental questions to continually ask, answer and address:

  1. What questions do I want/need my Big Data to answer?
  2. What types of analysis will be needed to answer our questions?
  3. How do our data need to be structured in order to perform the required analysis?

These questions might feel like a blinding flash of the obvious, but you’d be surprised by how few organizations actually start here.

By first defining the questions you want your Big Data to answer, it will be easier to determine the most appropriate type(s) of analysis your organization will need to perform – and there is a wide range of analytical complexity that can be employed (see below).

Woody2

Once you know the types of analyses you need (or want) to perform, it will be easier to define how best to structure your Big Data.

When performing statistical analysis in particular, your data need to be (or need to become) numbers that represent meaning or measure (structure).  This frankly is one of the biggest challenges with Big Data – most of it is typically unstructured (e.g., text comments, videos, website browsing streams, etc.).  While nearly all unstructured data can be transformed into structured data (numbers), it is really important to understand that not all numbers are created equal either (see below).

Woody3

Numbers can have very different meaning depending upon the level of measure they represent. Different types of measures are also better suited for different types of analyses. Given this, you can see why it is important that your Big Data are transformed (structured) in a very thoughtful and purposeful manner.

Will you monetize your big data?

My intention with this discussion was not to provide a detailed playbook for monetizing your Big Data. Rather it is to acknowledge the real and increasing challenges many are currently dealing with and offer insight for addressing some of the more fundamental problems.

As you start/revamp/update/overhaul your Big Data strategy, remember to ask, answer and address these foundational questions:

  1. What questions do I want/need my Big Data to answer?
  2. What types of analysis will be needed to answer our questions?
  3. How do our data need to be structured in order to perform the required analysis?

If you do, you can be sure that you moving your Big Data strategy in the right direction.  If you don’t, just keep in mind what happens when you try to stand on quicksand! –  Woody Bendle

 

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  • Identify your organization’s innovation profile
  • Learn and rapidly deploy effective strategic thinking exercises to spur innovation
  • Incorporate crowd sourced perspectives into your innovation strategy in smart ways

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It’s the first post of 2015 from customer experience strategy and innovation expert Woody Bendle. Today, Woody takes on performance metrics and a strategic look at how the measures you use with dramatically new and different strategies need to also be dramatically new and different themselves. Here’s Woody!

Performance Metrics – What Gets Measured? by Woody Bendle

woody-bendleWe’ve all heard the axiom, “What gets measured gets _________.

You can fill in the blank: done, fixed, improved, managed.

The point is if you want to accomplish (fix, improve, manage) something, you need to:

  • Have some idea about the desired outcome you’re seeking (vision or objective)
  • Establish an identifiable target – or series of targets (goals)
  • Do things that help you move toward the goals and desired outcome (activities and processes)
  • Have ways to determine if you are making progress toward achieving your identifiable target(s) and/or desired outcome (measures)

If you’ve spent any time in the business world, you know there is certainly no lack of performance metrics (or measures) for determining how a business or unit is performing and whether or not you are making progress toward your desired goals or objectives.

Most of these performance metrics – or “Key Performance Indicators,” aka KPI – are tried and true and have been around for decades.  And, many businesses have achieved success by adopting standard measures and employing well-known programs, processes and procedures for collecting, reporting, and monitoring activities and progress.

The more familiar or standard your desired outcome (or end state), the easier it is to be successful by employing standard activities, processes and measures.  But if your desired end state is very different from your current state, it is highly unlikely that standard activities, processes, and measures will suffice.  If you want to be very different, you need to do things very differently and you probably also need very different measures (or metrics) to get you there.

To help make my point, let’s take a look at these four illustrative “current state / end state” scenarios.

Woody-current-end-state

The current state, represented by the yellow “Here” circle, is identical for scenarios A through D but the end state varies in how different it is from the original yellow circle.

Scenario A is understandable for many in business. The end state here is basically the same as we currently are, but bigger.  In the business world this might be analogous to growing by selling more of our existing products to existing customers or to new customers in new territories.

Scenario B also isn’t much of a stretch. The end state remains a circle, gets a little bigger, and becomes a little more different by  doing something different (i.e., adding blue) to turn the circle green. In business, this may be growing by adding a new product line and selling more to new and existing customers.

Scenario C is clearly a different end state. The end state is bigger, changed color, completely changed shape, and added a new dimension.  The business analogy might be a combination of Scenario B as well as an acquisition of a business either up or downstream in the value chain and/or possibly even another totally unrelated business.

For Scenarios A-C, there are thousands of real world examples (or business cases) managers can leverage for how an organization can get from here to there.  These suggest the types of things you need to do, and what the types of measures you need to employ in order to monitor and ensure your progress.

For Scenario D, however, all bets are off.

In Scenario D the desired end-state is frankly something that bears no resemblance to the current state. Think Apple Computers in the 1980s vs. the Apple we know today.  Scenario D’s end state looks pretty unique, complex, hard to describe and quite possibly, very difficult to duplicate.  Scenario D is actually illustrative of the types of conversations occurring at many companies today with business model innovation or business transformation.

To achieve the transformative end state in Scenario D, you will likely have to do many things very very differently.  And, you will also likely need to create and utilize completely different measures or performance metrics to help get you there.

So yes, what gets measured gets done, fixed, improved, managed, and possibly changed.  But allow me to modify the oft mis-attributed Einstein quote on insanity:

“If you are expecting to achieve radical transformational results by employing (or tweaking) existing processes, procedures, measures or metrics, you’re completely nuts!   

If your desire is to transform your business or organization, do yourself, your shareholders and your entire organization a favor. Clearly envision, define and articulate:

  • Where / what you want to be
  • All the possible paths you might take to get there
  • How long it might take to arrive at different points along the path
  • What you need to do to know if you are making progress, and if you are nearing your desired end state

If you are having a hard time getting started with this, I’m betting Mike and the folks of The Brainzooming Group have well over 100 articles that can help you out! – Woody Bendle

 

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This new ebook features sixteen strategic thinking exercises to help you ideate, prioritize, and develop your best innovative growth ideas. Download this free, concise ebook to:

  • Identify your organization’s innovation profile
  • Learn and rapidly deploy effective strategic thinking exercises to spur innovation
  • Incorporate crowd sourced perspectives into your innovation strategy in smart ways

Download this FREE ebook to turn ideas into actionable innovation strategies to drive your organization’s growth.

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It’s fantastic to have Woody Bendle back on the Brainzooming blog after too long away with an admonition to consider going opposite with your new product innovation strategy. Here’s Woody! 

New Product Innovation Strategy – Go Opposite by Woody Bendle

If you are a student or practitioner of new product innovation strategy, you are undoubtedly familiar with the “Go Opposite” strategy.  If you are neither however, the Go Opposite new product innovation strategy is a specific example of an innovation technique sometimes called “Challenge Existing Conventions” that seeks innovation opportunities by going after sacred cows – or purposefully diverging from the herd.

I have recently come across a terrific example that really drives home the Go Opposite new product innovation strategy in running shoes. Consider this depiction of 40 years of running shoes:

Running-Shoe-Trends

From the 1970s through the late 2000s, the prevailing trend in running shoes was the evolution and advancement of materials and technologies.  Shoes became more constructed with better out and midsoles that were designed for runners with different gates and foot-strike patterns.

In 2009, Christopher MacDougall’s book Born to Run (affiliate link) unleashed the “Go Opposite” trend of minimalism and for the next five or so years, nearly every running shoe company introduced an array of minimalism innovations that were designed to emulate the feeling of being barefoot – without actually being barefoot.

Right about the same time as the release of Born to Run, a completely different type of running shoe company started up called Hoka One One.  Rather than following the prevailing trend of minimalism, Hoka (affiliate link) innovated by Going Opposite and produced running shoes with maximal cushioning.  And, for going opposite when it comes to its new product innovation strategy, they have been rewarded with a ton of awards and accolades.

Regardless of the market that you happen to compete in, it is always important to understand the prevailing trends driving your industry.  But just remember, chasing the prevailing trend is usually a pretty crowded space and some terrific innovative opportunities regularly exist by exploring the opposite direction! Woody Bendle

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Download: FREE Innovation Strategic Thinking Fake Book

Brainzooming Outside-In Innovation Strategic Thinking Tools eBookAre you making the best use of customer input and market insights to deliver innovation and growth? Creating successful, innovative new products and services has never been more dependent on tapping perspectives from outside your organization.

This new ebook features sixteen strategic thinking exercises to help you ideate, prioritize, and develop your best innovative growth ideas. Download this free, concise ebook to:

  • Identify your organization’s innovation profile
  • Learn and rapidly deploy effective strategic thinking exercises to spur innovation
  • Incorporate crowd sourced perspectives into your innovation strategy in smart ways

Download this FREE ebook to turn ideas into actionable innovation strategies to drive your organization’s growth.

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woody-bendleThe last few days, I’ve been enjoying some incredible BBQ ribs from customer experience strategy and innovation expert Woody Bendle.

And let me tell you: as smart as Woody is about branding and innovation, he’s just as great making ribs! I paired Woody’s ribs with barbeque sauce my wife makes from the recipe at the restaurant my parents used to own, and WOW!

Even though I can’t share the ribs with all of you, they inspired me to put together a retrospective of Woody’s blog posts on Brainzooming. He’s always a popular guest author, and since he hasn’t been able to write as much for the Brainzooming blog this year, I wanted to make sure our newest readers knew about all of Woody’s great content.

So without delay, dive in to Woody’s great strategic thinking, while I have one more meal of diving into Woody’s great barbeque!

Brand Strategy

Customer Focus and Customer Experience

Innovation

Strategic Thinking and Creative Thinking

Business Rants

Potpourri

 

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Download the free ebook, “Taking the NO Out of InNOvation” to help you generate fantastic creative thinking and ideas! For an organizational innovation success boost, contact The Brainzooming Group to help your team be more successful by rapidly expanding strategic options and creating innovative plans to efficiently implement. Email us at info@brainzooming.com or call us at 816-509-5320 to learn how we can deliver these benefits for you.

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Data-savvy marketing & innovation expert, Woody Bendle takes a look in this guest post at the relationship between customer centricity and growth, or more specifically the lack of both among a select group of traditional retailers.

And just so you know, beyond being a fantastic resource on brand strategy and innovation, Woody has set a new high bar for guest contributors at Brainzooming. He delivered this most recent guest blog post along with a slab of his homebbqed ribs! So, for all the people who send us emails about wanting to guest post with “incredible, unique content,” the question is, “How good are you at grilling?”

Now, here’s Woody!  

 

Brand Strategy – Customer Centricity and Growth by Woody Bendle

Many of America’s largest retailers recently reported financial results falling short of analysts’ (and undoubtedly their own) expectations.  The table below recaps the highlights (or low lights) among select national retailers.

Retail-Q1-2014

Many of them attributed this winter’s unusually cold weather and continuing economic struggles among core customers for their economic shortfalls.  But digging deeper into their numbers shows more to the story. Many of America’s largest retailers are finding it much harder to generate profitable growth in the traditional manner, which has been opening stores in new (domestic and international) markets, expanding product assortments, and becoming more effective and efficient through operational and executional improvements.  Or as I like to say, just getting bigger and better.

The graphic below, which I use when discussing business growth strategy, illustrates the concept of growing a business is pretty straight forward. As the businesses above demonstrated this past quarter, however, it isn’t always easy.

Growth-Framework

To grow any business, you have four options:

  1. Get existing customers to buy more of current products or services
  2. Get new customers (i.e., in different markets) to buy current products or services
  3. Develop or find new products or services for existing customers
  4. Develop or find new products or services for entirely new customers

For roughly fifty years, growth path for nearly all of the retailers above has focused on cells A, B, and to some extent C (i.e.,  Walmart and Target expansions into grocery).  For much of this time, most of these businesses have had incredible success, but growth has become harder the past several years.

What’s changed?

Two things that are fundamentally different about today’s business environment:

1. Market power has shifted away from many businesses to the consumer, due to radical decreases in the costs associated with information and geography.

The internet and mobile technologies have greatly improved the consumer’s ability to be better informed (about alternatives and competitive prices globally) and have enabled disruptive businesses to emerge (i.e., amazon.com – note its 26% growth in North America this past quarter). These have diminished the need for customers to travel to a physical store to make a purchase.

2. The great recession fundamentally changed the consumer mindset, resulting in a “new normal” in consumer behavior.

This is best summed up by The Future’s Company:“Consumers everywhere … are working from a new orientation about what they want and how they buy… [They] are now battle hardened, having found ways to survive and even thrive on the new opportunities a more competitive market has yielded.”

The result is the traditional path to growth – getting bigger and/or getting better – is nearing its limit for many businesses.  This necessitates businesses rethinking their growth strategies, with adopting customer-centric business practices as one avenue for new growth!

Growth through Customer Centricity

Something fascinating about the Strategic Business Growth Framework is the customer/consumer is actually present in every cell.  Through my own consumer experiences, however, it doesn’t often feel like many businesses realize this.  How many of you have heard a store associate say something like, “I don’t know how I’m going to get my job done with all of these customers in here”?

Many businesses are either product or operationally focused.  Nearly every decision they make starts with what they sell (or plan on selling), or how they go about doing what they do.  These businesses put what they do and how they do it in front of whom they do it for.

This is a primary reason why it has taken so long for many traditional businesses to embrace fully integrated multi-channel or omni-channel practices.  While most understand it makes sense to the consumer, they haven’t figured out how to make it make (financial) sense given what they already do, how they currently do it, and how they currently measure all of it.

A customer centric business, however, thinks exactly opposite.  Its decisions start with the customer. Activities (and incentives) are aligned to profitably deliver goods or services maximizing value for customers – and, in turn, their shareholders.  Once they identify an opportunity to create more net value over time, they systematically figure it out, sometimes at the expense (temporarily or permanently) of existing business.

It’s all about creating new customer and shareholder value!

The Next Customer Centricity Step Is Yours

My intent is to shine a light on a different path, not provide the playbook for becoming a customer centric organization.

If you want to become more customer centric, here are eleven questions to help decide if customer centricity is right for you and to help on your journey:

  1. Why do my customers come to us vs. the competition?
  2. What value do we provide to our customers today?
  3. What are all our customers’ needs?
  4. Have our customers’ needs changed? How and why?
  5. What customer needs do we currently meet / exceed today?
  6. How well are all of their needs being met by the marketplace today?
  7. Are there new competitors who are satisfying some of our customers’ needs in a different way?
  8. What can we do better (or differently) to uniquely meet and exceed those needs today and tomorrow?
  9. What else can we do to create even more value for our customers?
  10. Are we willing to put customer’s interests at the center of our decisions and processes?
  11. How much are we willing to change?  Really?

And as you answer question 11, don’t confuse how much change you are willing to undergo with how much that change is noticed by customers and whether they value it.

Those are three separate questions for all you operationally focused people. There’s no “extra credit for efficiency” in trying to answer them all together. To the contrary, you’ll definitely be penalized for thinking efficiency at the expense of thinking about your customer! Woody Bendle

If you enjoyed this article, subscribe to the free Brainzooming blog email updates.

Download the free ebook, “Taking the NO Out of InNOvation” to help you generate fantastic creative thinking and ideas! For an organizational innovation success boost, contact The Brainzooming Group to help your team be more successful by rapidly expanding strategic options and creating innovative plans to efficiently implement. Email us at info@brainzooming.com or call us at 816-509-5320 to learn how we can deliver these benefits for you.

 

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It’s wonderful to feature four important brand strategy questions from customer experience strategy and innovation expert Woody Bendle. In the course of his typical daily routine, Woody has a more than healthy commute by Kansas City standards. Woody texted me about this brand strategy lesson on the way home one recent evening and followed it up the next day with this post reminding those responsible for brand strategy to think about what will happen when our ideas actually meet up with customers. Here’s Woody!

woody-bendleBrand Strategy – When “Good Enough” Isn’t by Woody Bendle

“The enemy of the good is great.”

Have you heard this expression before? 

If you haven’t, the sentiment behind this expression is this: If you are continually reluctant to move forward until you have something that is great or perfect, you might sometimes fail to make valuable progress by getting something out there that is pretty darned good – but not great.

In many situations, I wholeheartedly subscribe to this philosophy.

But, there are occasions when you absolutely need to be better than “good enough.”

One of those occasions involves your brand strategy and every time you are presenting your brand.

Brand Strategy Isn’t the Place for Good Enough

I recently pulled off the interstate to fuel up at a truck stop. As I was fueling, I happened to notice, for some reason, a display attached to the pump about never paying full price for gas again.

Shell-1

I really didn’t think too much about this display until I went around to the end of the pump to grab the squeegee and clean off my windshield. This is what I saw.

140410-Shell3

OOPS!

The original message that got my interest about never paying full price again didn’t come through on the Shell brochure holder.

There, thanks to the application holder lid’s placement, the “Never pay full price again” card became the “pay full price again” card.

I actually did a double-take, shook my head and wondered to myself if anyone had even thought about trying to stick some brochures in the holders to see what it looked like before they had a gazillion of them printed and sent all over the country. The sad thing is if they had just taken the two logos at the bottom of the brochure and moved them to the very top and shifted the rest of the content down,  the message would’ve been read very clearly.

Lessons learned, and it’s a great reminder that design and layout matters.

A Brand Strategy that is “Good Enough” Isn’t

I have no idea if anyone at Shell is even aware of this issue. It did, however, serve as a valuable reminder that every time you are putting your brand in the marketplace, you need to ask yourself several important brand strategy questions:

  1. What am I trying to convey / communicate about my brand or my brand’s promotion?
  2. Is the message clear and compelling – not to me but to the customer?
  3. How will the message be put in front of the customer?
  4. What exactly will the customer see, hear, think, and feel when my message is put in front of them?

And finally, as you are working through the above questions, you’d be well served to think like my Missouri neighbors and just say “Show-Me” a little more often. Woody Bendle

 

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Customer experience strategy and innovation expert Woody Bendle is getting all crazy innovative in today’s guest post as he shares how to push for extreme innovation when you need it. Take it away Woody!

 

Creative Thinking Exercise for Extreme Innovation by Woody Bendle

One of the most exciting things to me in the innovation process is generating an array of possible ideas for uniquely solving unmet or underserved consumer needs.

i3-generate-ideas

As you see in the i3 Continuous Innovation Process map above, generating ideas happens AFTER the consumer needs have been identified. The reason for this is two-fold:

  1. If you generate new product and/or service ideas before you fully understand all of your consumers’ needs, there is a high likelihood you will waste time, effort and money chasing a cool idea destined to fail.
  2. It is easier to come up with possible solutions to a problem once you actually know what the problem is!

Assume we’ve done our homework and have clearly identified and prioritized all our consumers’ needs based on the magnitude of the opportunity.  The next step in the Continuous Innovation Process is to come up with as many possible ideas or solutions (regardless of feasibility), that might create meaningful new value for our target consumers.

I like starting idea generation sessions with a set of exercises I’ve developed called “Going to Extremes.”  The objective is to break the ice quickly and get the craziest, coolest, far-reaching things you can come up with on the table to start. The more absurd, extreme or ridiculous the idea the better!

go-extremes-exercises

As you begin working with these tools, it is important to frame each exercise in the context of exploring possibilities for addressing only one or two unmet (or underserved) consumer needs.  Narrowing your focus actually works in your favor when you are Brainzooming!

It is important to emphasize you really want to try to come up with 100 (or more) ideas for each exercise.  All ideas are welcome – as long as they are crazy, cool, extreme, ridiculous or even absurd!

In my experience, the best and most innovative ideas tend to be closer to the 100th idea than the first, so keep generating as many ideas as you can.  And don’t judge them, because the next step of the i3 Continuous Innovation Process is where we weed out the ideas that don’t make economic sense.

The Value of Going for Extreme Innovation

After working with these creative thinking exercises for several years, I’ve found them effective for several reasons:

  1. They explicitly make it okay to say something a little (or a lot) crazy. Everyone has a little “crazy” in them, and they now have permission to let it out!  And, Column C reinforces that we’re looking for stuff that is really really crazy, cool and way out there! As a side note, how many times do you suppose Thomas Edison, Steve Jobs or the Wright brothers heard, “That’s crazy!” – only later to hear “This is awesome!” or “This is amazing!”
  2. Because you are going for quantity in addition to the extreme, participants tend not to overthink their ideas in search of that spectacular idea – they just let them rip!
  3. Thinking about the why and the what (column B) highlights functional and emotional benefits which often lead naturally to new, even better ideas for Column C. (Remember that breakthrough innovations tend to be much closer to the extremes than where we currently are. )
  4. Lastly, these exercises are a ton of fun!  Now, who doesn’t need more fun in their life?!

So here is a crazy idea; the next time you are planning an idea generation session, why don’t you give these Going to Extremes Exercises a shot?

And if you need a little added encouragement, let’s give a listen to what Seal has to say about getting a little Crazy.  Better yet!  Play this tune in the background during your next idea generation session! Woody Bendle

 

If you enjoyed this article, subscribe to the free Brainzooming blog email updates.


Download the free ebook, “Taking the NO Out of InNOvation” to help you generate fantastic creative thinking and ideas! For an organizational innovation success boost, contact The Brainzooming Group to help your team be more successful by rapidly expanding strategic options and creating innovative plans to efficiently implement. Email us at info@brainzooming.com or call us at 816-509-5320 to learn how we can deliver these benefits for you.

 

 

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