The Downside of Disruption: Is Your Startup Destined to become a Fad?

Is it better to burn out than fade away? Not in the business world. One of the last things business owners want is for their company to become an ill-fated fad. Yet, for disruptive startups, there’s a potential the company or product may become just another flash in the pan.

While exciting, innovative, and potentially lucrative, the world of disruption is not always sunshine and unicorns. Disruptive companies tend to start out as real showstoppers-;they arrive on the scene with a revolutionary new idea and quickly take out the competition by changing the ways things have always been done. But once that initial energy is burned up, it can be difficult for disruptors to maintain their hold in the market-;especially when the competition has been in business for decades.

So, how do disruptive startups avoid becoming just another fad? Let’s take a look at a few once-promising disruptors to see went wrong:

Blue Apron

This startup shook up a few industries in its wake-;restaurants, grocery stores, and even delivery services were impacted-;offering an exciting new solution for customers who are short on time but still want to enjoy a home-cooked meal.

At the pinnacle of Blue Apron’s success, around 2015, it was valued at $2 billion. Today, however, the company is struggling. The sharply declining customer base and falling revenue are causing some serious concerns for this startup.

Snapchat​

Snap Inc (formerly known as Snapchat) was built on the concept of ephemeral photos, but these days the company itself is also at risk of also disappearing.

What emerged as just another social media platform, quickly grew when it launched Stories-;a capability no other social platform was featuring at the time. Stories gave users quick glimpses into their friends’ everyday life only to have the video disappear into the recesses of the Internet after 24 hours. Unfortunately, this game-changing capability was easily mimicked by Instagram and Facebook.

Then, the company changed its name from Snapchat to Snap Inc and launched Spectacles by Snapchat. Why Snap thought it was a good idea to tread where Google had already failed is anyone’s guess but Spectacles hardly reached the pinnacle of success that Snap expected.

These days, Snap’s revenue and user base are on the decline. It may only be a matter of time before this company also disappears completely.

Twitter

Similar to Snapchat, Twitter is also facing endurance issues. What was once a promising new social platform (that at one point in time was giving Facebook a run for its money) is now losing its customer base and stock prices are continuing to plummet. It feels as if Twitter might also be singing a swan song.

Uber

This ride-sharing app has enjoyed years of success but it’s no longer the only big kid on the playground. The taxi industry has been fighting back, creating their own app with similar functionality. And then there’s the political controversy and scandals that basically ushered former Uber users into the arms of direct competitor, Lyft.

The startup that turned the taxi industry on its head may also be at risk of burning out.

What went wrong

There are two main takeaways we can learn from the disruptors above:

1. They were easily copied

What was once a great idea no one ever thought of before, might be really easy for stronger companies to mimic and capitalize on. Facebook swiped Snapchat’s stories. Lyft took Uber’s premise and ran. Blue Apron is now competing with the likes of Hello Fresh, Freshly, Sun Basket, Plated, etc., etc.

This isn’t to say that if your idea is easily mimicked that you don’t stand a chance. You do. You just need to make sure your company or idea has that special ingredient attached to it that no other similar product can compete with. It could be amazing customer service, a partnership with high-powered brands, or simply avoiding controversial decisions that will land your business in hot water (looking at you, Uber).

2. Remaining stagnant is a death wish

Once your main idea is off and running, you need to start exploring other ways to remain relevant to your customer base (or find ways to acquire and retain new customers). Snapchat tried this with Spectacles and Twitter tried it by acquiring Vine, but these two attempts hardly count as innovating.

If you truly want to compete, don’t stop with your first big idea. Keep it moving--and keep your innovations in line with your company’s mission and vision.

Final word

When it comes to business, it’s never better to burn out than fade away. Yet the sad reality is that many disruptive startups struggle to remain relevant after the initial disruption. So, if you want to make sure your company is more than a passing trend, you need to find ways to continually outdo your competition and find new and interesting ways to surprise and delight customers. If you can do this, your company will continue to burn brightly for years to come.

The Risks and Rewards of Agile Transformation

Agile transformation is no longer a state of nirvana sought only by tech companies. As we move deeper into the Digital Age, every business needs to become more agile to avoid disruption and better serve customers.In fact, agile work solutions are becoming more prevalent in companies around the globe. Here are several examples of companies that created more agile working environments to meet specific business needs:

• Merrill Lynch & Co. created a cost transparency initiative to improve management of common IT utilities among businesses.
• PNC Financial Services Group trained nearly 3,800 branch and phone center employees in only five months to meet the needs of new federal regulations.
• Harvard Business School used existing resources to create an online research and course-planning application and launched it in three weeks.
• H&R Block created a resource pool of project managers to act as internal consultants. Because of this, they were able to meet a 17-day deadline to open new offices in 552 Walmart locations.
• Anthem built an entire service model for 72,000-customer accounts in less than 90 days.

The pace of change is accelerating. Businesses need to keep up to adapt but this cannot happen in more traditional businesses with siloed departments and long, overly complicated processes.Unfortunately, many businesses are still reluctant to invest in agile transformation. They know their customers are on-the-go and their needs are rapidly changing and evolving, yet they're too afraid to re-organize the business to quickly serve those changing needs.

Assessing the risks and challenges

Yes, there are risks involved in agile transformation. A few to consider include:

• You may lose talented employees who'd rather continue doing things the way they've always been done, or feel these changes may threaten the need for their role in the company to exist
• You may find that managers struggle to embrace this new way of leading and working--or they're unable to effectively manage in a more agile working environment. Sometimes managers can get accustomed to too much process.
• You may need to let some people go. They may no longer be the right fit for the more flexible working environment.
• You might lose customers in the process. You could lose them based on the rockiness of the transition. Or you could lose them because they don't like the direction your business is headed in or how you now service them
• You could potentially change the entire DNA of the company or blur your intended vision. Without certain departments operating how they've always operated, then business could go off the rails.

Reaping the potential rewards

When you tear down silos and get your teams working together at a faster, more flexible pace, it can result in several rewards for your business, including:

• You're able to meet evolving customer demands quicker than your competitors.
• You can respond to new laws and regulations with increasing speed and accuracy.
• You can react fast in certain situations that call for it without having to worry about red tape and office politics.
• Your teams have the freedom and flexibility to explore innovative new ideas, processes, and products.
• Your processes and operations can be streamlined and made more efficient.

The list continues to go on, but the most important thing to consider is timing. Customers today expect on-the-go convenience when, where, and how they need it. Creating an agile workforce is the only we can deliver on those expectations.

Crafting the right solution

When it comes to agile transformation, the rewards are worth the risks. But you need to be strategic about kicking off the process. Start with a small department or team and reimagine how they could do business if silos were torn down and barriers were removed. Give them the freedom to stretch their wings and complete their mission as quickly and efficiently as possible. If the program works, then consider rolling it out to other departments and fine-tuning the process as you go.

Final word

If your company is going to survive and thrive in our current Digital Age, agile transformation is a must. Yes, there are certain risks, but if the outcome is better serving your customers, then it's well worth the rewards. Just remember that you don't have to dive headfirst into agile transformation. Instead, create form a strategy or plan, and methodically chip away at it over time. Eventually, your business will transform into an environment where you can quickly pivot to meet changing consumer needs.

How to Manage Third-Party Vendors, Suppliers, and Contractors

Is it time to stop constantly burning the midnight oil? Or are you ready to throw away the many hats you've been forced to wear through your company's latest growth phase?Yes, growing a business is no small feat--and neither is recognizing the need to delegate responsibilities. Hopefully, you're in the process of building your dream team to help your company handle the latest expansion. But even if you have your ideal team in place, you'll still need to work with the occasional vendor, supplier, or contractor to fill in any growing-pain gaps. And similar to building your internal staff, managing these third-party relationships requires a certain approach.Here are a few things to keep in mind when managing any relationship with a vendor, contractor, or supplier.

Do your research

Knowledge is power--the more you know about your vendor's area of expertise, the better. This will help you:

• Avoid paying too much for things you don't need.Think about this in terms of buying a car. If you don't do your research beforehand, you could end up paying a high price for features you don't really need. The same principle applies to your vendors. Learn everything you can about their field, and determine what it is you absolutely need before asking for quotes.
• Find the right vendor for the job.Sure, you might be tempted to hire your friend's cousin's sister to run your social media accounts, but does she know how to run a successful Facebook ad campaign? Does she have the writing or design skills necessary to create effective posts? When you do your research, you'll have a better idea of what your company needs and if the vendors you're considering are the right ones for the job.

Leverage your network and ask for referrals

After you've done all your research on possible vendor options, don't be afraid to ask your network for recommendations. You may also want to reach out to the clients the vendor has listed on their website. They might be able to provide a more transparent testimony of working with the vendor than what they have listed in their marketing materials.You can also use your network when it comes time to reviewing any vendor proposals or quotes. For example, if you have a colleague who's running a tech company, ask them if they have a few minutes to look over a quote you've received from a freelance software developer you'd like to hire.

Review legal contracts carefully

This one is obvious but bears repeating: before starting any new relationship with a vendor, contractor, or supplier be sure to carefully review any contracts. Best case scenario, you have a lawyer look at anything you're about to sign, but I know this can be tough when bootstrapping. If funds are low, you might need to get creative. Ask for quotes or take advantage of free online legal advice sites.The reason it's crucial to review contracts is that you want to ensure:

• There are no hidden fees--especially when it comes to ending the contract or the relationship.
• The payment terms are fair for both you and the vendor.
• The standards of service are well defined.
• You're protecting the security and privacy of your company, employees, and customers.

This list could go on forever, but the key thing to remember is to never blindly sign anything. What you establish in the contract will dictate your entire relationship with that vendor. Read everything and don't be afraid to propose changes if necessary. If the vendor is unwilling to make changes to the contract that are important to you, then consider taking your business elsewhere.

Sell the value of your company

Similar to any job interview, while the vendor tries to sell the value of their business, you'll also want to sell them on the value of yours. You could open up a whole new market for that vendor--and it could be one they've been wanting to get into. You also want to assure them that taking you on as a client won't be a risk. Vendors often struggle with clients who don't pay on time or at all (if business goes sour). They're likely looking for a solid and stable partnership between your business and theirs.

Make backup plans

Things happen. Shipments get lost. Contractors get sick. And online software can get hacked. Keep all of this in mind when starting any third-party relationship. You'll want to make backup plans for worst-case scenarios--especially if it could impact your customers.

Invest in the relationship

At the end of the day, you're not working with a vendor, contractor, or supplier, you're working with people. These people have their own networks that could expand into territories that could benefit your business. But if you don't take the time to invest in these relationships, you'll never find out. Consider your third-party partnerships as another working relationship you need to nurture.

Final word

In addition to building your dream team, establishing effective vendor, supplier, and contractor partnerships can help you save time and money. By offloading certain tasks or capabilities to third-party businesses, you can focus on what you do best--bringing your business's vision into crystal clear focus.

Solopreneurs: This is How to Build Your Dream Team

Every great company started out as a single person with a vision. But that vision cannot become a thriving business when it remains a one-person show. This is why it's so important for solopreneurs, or anyone starting a business, to know how to build their dream team.

With the right team in place, you can expand your reach and, eventually, your profits.

But building a dream team can be tough for any type of entrepreneur. Those with an entrepreneurial spirit tend to be very independent and might even refuse to delegate because no one knows the business better than they do. This is a dangerous trap to fall into. To grow a business beyond a party of one, you need to hire talented people who are just as passionate about achieving your vision as you are.

So, if you're ready to move from a solopreneur wearing many hats to the founder and CEO of a major corporation, then you need to start building your dream team today. Here's how.

Remember, it's a learning process

First and foremost, don't expect that you're going to find the perfect employees in the first wave of hiring. Even if you partner with a top talent agency to recruit the best managers in the market, there's still a chance those candidates might not be the best fit for your particular business. Or you might assemble a team of the best and brightest only to discover their personalities don't mix well together or they're unable to adapt well with the growing and changing needs of your business. While it can be frustrating, this is all normal.

In these first few years of growth and development, your business will be volatile. It might be easy to give up hope of ever finding the right people at this stage, but be persistent. This is truly a trial and error process so take careful note of the types of personalities and experience levels that turn out to be a great fit for your business.

Avoid hiring people you already know

At the solopreneur level, there tends to be a pattern of hiring friends or people you know. This is rarely an effective practice and can put your personal relationships in jeopardy.

When you know the person you want to hire, your judgment is often marred by the existing relationship. You may overlook certain red flags on their behaviors due to your familiarity with them. And if you do end up hiring a friend, you also run the risk of being unable to manage them in an objective way.

Instead, it's better to find talent through traditional methods like LinkedIn job posts or a recruiter. Hiring people through these methods will mean you'll have a better chance at being more objective about the working relationship.

Take your time

As a solopreneur, there's a good chance you've spent many sleepless nights trying to keep your business on the rails. You know you need help and you need it now. But when building your dream team, you need to take your time. It's difficult to judge a potential employee without getting to know them well. You need to get a sense of their habits and behaviors and see how they handle things. It's all too easy to be fooled by a couple of good interviews.

So, in addition to traditional interviews, take the candidate out to dinner or lunch. See how they react in a setting outside of the office. You might also want to consider bringing them back into the office and having them chat with multiple people on your team. Then listen to your employees' feedback. I've had personal experiences where this approach has made a world of difference.

You might also want to consider having your candidate interview with an advisor or mentor--someone who isn't a part of your business but whose opinion you trust and value.

While it might seem like a long, drawn-out process, when you finally find the perfect fit, you'll know every moment spent carefully searching was worth it.

Leverage your network

While it's important to avoid hiring people you might know too well or have a personal relationship with, don't shy away from leveraging your network to find the right talent. Referrals are a great way to meet potential candidates--but be sure you're putting them through the same rigorous screening process as mentioned above.

Find the right vendors

Your day-to-day personnel is the core of your dream team, but in the early stages of developing your business, outside vendors play an important role. You might not have the need for a full-time social media employee at first, but you'll still need to get those Facebook ads out there. Or you may need to find the right warehouse for your product as your garage is now filled beyond capacity.

But finding a good vendor isn't as crucial or time-consuming as finding the right full-time employees. Of course, do your research, read reviews or testimonials, and get to know who you'd be working with, but if a vendor doesn't work out, you can quickly end the relationship and move on to the next (unlike with full-time employees where the process of ending the professional relationship is much more complex). And before you sign any contracts with a vendor, review them carefully or send them to a lawyer to read through. You'll want to make sure you can make a clean break should it come time to change vendors.

Final word

Building a dream team should be top priority for any solopreneur who's hoping to become the next Buffett, Gates, or Bezos. While an independent streak is a good characteristic for any solopreneur to have, delegation is vital. You can't do it all yourself, so you might as well take the time to find the right people who will help you bring your vision to life. And once you do, you'll wonder how you ever made it without them.

Transforming the customer experience delivers dividends well beyond CSAT scores

For the sixth consecutive year, the utility industry in the U.S. improved its overall customer satisfaction scores, according to last year’s J.D. Power Electric Utility Residential Customer Satisfaction Study. Overall customer satisfaction for utilities averaged 719 (on a 1,000-point scale) in 2017, a 39-point improvement from 2016.

As J.D. Power points out, much of this improvement can be attributed to utilities’ burgeoning efforts to provide their customers with more timely and useful information, particularly alerts and restoration estimates during power outages, as well as a better understanding of rates and costs through the billing process.

Nevertheless, utilities continue to lag behind other industries – banking, retail, airlines, brokerage firms, even auto insurance – that have successfully executed their digital transformation strategies. For example, according to J.D. Power’s Centric Digital DIMENSIONSTM Score, which evaluates “digital proficiency,” the utility industry scores 571 on a 1,000-point scale. The retail sector, by contrast, scores 771. In other words, industries that must compete for customers every day are moving at a transformational pace while most utilities are still moving at an incremental pace.

Whether it’s customers generating more and more of their own power or embracing new market entrants to better manage energy consumption and increase energy efficiency, utilities are facing the challenge of staying relevant to the consumer in an increasingly distributed and competitive energy marketplace.

In this brave new world, utilities face three key business challenges:

• Running a reliable, efficient and safe power grid, maximizing the return on those asset investments even as the traditional funding source erodes due to flat or declining energy sales.
• Accommodating increasing amounts of intermittent and distributed energy resources into a power grid that was built to support one-way power flows from central station generation.
• Delivering greater value to their customers whose expectations, based on their experience in other industries, are on the rise and who want more from their utility than just a monthly bill.

The upshot is that these business challenges are not mutually exclusive but rather highly interconnected. Moreover, executing a digital strategy to transform the customer experience with a combination of IoT, cloud computing, analytics, and a robust customer engagement platform will deliver significant dividends in each of these three vital areas.

For example, one of the challenges presented by distributed generation – particularly solar and wind – is the fact that peak production is not co-incident with peak power demand. In 2016, according to figures provided by the California ISO, California wasted or “curtailed” more than 300,000 MWh of renewable production because there was not enough demand during the late mornings and afternoons. That’s enough electricity to power nearly 50,000 homes for a year. The proliferation of rooftop solar also increases voltage fluctuations and the likelihood that grid assets, such as distribution transformers, can be overloaded from the load side during times of peak production.

These dynamics can be seen as a competitive threat or simply a problem to manage. Or they can be seen as an opportunity for utilities to innovate and deliver new services to customers while also addressing grid management challenges presented by increasing distributed generation. With IoT sensing, a combination of cloud and edge computing, analytics, and integrated control and customer engagement platforms, the utility is ideally positioned to manage and optimize these distributed assets as a revenue generating service to customers.

That means creating local power pools running on a blockchain so that surplus rooftop solar generation can be intelligently directed to storage, EV charging or to a neighbor on the cul-de-sac who wants to dry their clothes with discounted power. This is just one example of how utilities can partner with and empower “prosumers” to ensure a stable and reliable grid, deliver more clean energy and create happy customers.

In deregulated retail electricity markets, such as Texas, Illinois, and several states in the Northeast, energy retailers that compete for customers every day are innovating both with technology and the business model to offer new services to their expectant customers. From clean energy packages to time-of-use rates to free nights and weekends, these retailers are using data and analytics to discern customer needs – both stated and unstated, to build loyalty and drive revenue growth. And many regulated utilities are taking notice.

These opportunities extend to water and natural gas utilities as well. By combining smart meter data and analytics, water utilities can proactively alert their customers to leaks behind the meter, avoiding high bills or expensive property damage. Similarly, gas utilities can deploy IoT sensing technology and analytics to improve the safety and integrity of their distribution pipelines by ubiquitously monitoring temperature, pressure and cathodic protection sensors at the edge of their networks, identifying gas leaks or potential safety issues before they become a problem.

But how do utilities move from incremental to transformational? Employing a “bimodal” strategy (as Gartner refers to it), where a utility supports two coherent styles of work – one focused on predictability and continuity, the other on exploration and innovation - is the sensible approach when managed effectively and reinforced by a unifying vision. Choosing a partner that can bridge informational and operational technologies, while bringing to the table both utility subject matter expertise and lessons from other industries is also critical.

A remarkable transformation is well underway in the energy and utility market space. Technology is creating a marketplace that is much more distributed, horizontal and inclusive. Customers want more value and have more choices. And there is much to be learned from other industries that have embarked on their digital journeys.

Utilities can either leverage their incumbency to seize this new ground and stay relevant, or fail to do so at their own peril. But the upside is that in the course of creating happier customers, they’ll also gain a leg up on addressing some of their other most pressing business challenges.

Are Quarterly Business Goals an Outdated Practice?

Welcome to the second half of 2018. At this stage, the lofty goals you set at the beginning of the year should be 50 percent complete. Which means your company is on track to announce wild successes once January 2019 rolls around--right? Well, not so fast.

Even if you've accomplished all your Q2 goals, it might not mean your company is in the best shape.

"I've never seen a company whose performance has been improved by having some forecast out there by the CEO that says 'We're going to earn X this quarter,'" American business magnate Warren Buffet explained in a recent interview with CNBC and Jamie Dimon. "It's not only sending the wrong message and delivering the wrong results to the company...it's also teaching the people that work under him or her that quarterly performance is the end game."

Arguably, this is the type of mentality that may have lead to the Wells Fargo scandal. When your employees are creating fake accounts in order to meet unrealistic sales goals, it's time to re-think reporting and expectations (in addition to many other much-needed changes).

Not only does this type of goal-setting increase the potential for poor decision-making, but it can also stifle innovation. When you're too focused on the wrong outcomes, you may pass up an opportunity to make crucial changes or investments.

For example, let's say Company X needs to invest in digital technology that will revolutionize the customer shopping experience. The only downside is that the investment will put a big dent in Q2 profits. So, rather than not meet those second-quarter goals, Company X decides not to invest. This leads to a decline in sales as customers become increasingly frustrated with the poor online shopping experience. Over time, leaner, more agile competitors continue to steal market share, putting Company X out of business for good.

So, when looking at quarterly goals from a big-picture standpoint--do they still make sense? If not, it's time to rethink your strategies.

Does company size matter?

Relying too heavily on quarterly goals could ruin a business--which is often the case with companies that are in startup through growth-equity development stages. These earlier-stage businesses should be wary of focusing on quarterly goals versus yearly goals. Why? Because when you're new or growing, you need to be able to pivot. Goals set at the beginning of the year may become obsolete by the end of February. So instead of rigidly sticking to outdated goals, you need to be able to switch gears--and switch gears quickly.

For larger companies, there may be some merit to having quarterly goals, but I'd still argue the need for agility. In today's fast-paced world, larger companies are getting beat by smaller more nimble startups. Combine this with the ever-accelerating pace of new and emerging digital technologies, and goals made at the beginning of January may not make any sense by the end of the month.

Taking the long view

For startups and companies in growth mode, it's important to take the medium-to-long view as often as possible when making decisions. Have a crystal-clear vision for your company and list out the milestones you need to achieve it. From there you may need to be flexible in how and when you can achieve those milestones.

If you didn't meet a specific sales goal but made a decision that will bring you closer to achieving the company's vision, then--in the long run--you may achieve greater success. For example, being forced to achieve higher profit too quickly can harm an early-stage company. This is not to say profit and sustainability aren't important--they are--but so is making investments in the business that will result in scale and competitive advantage in the long run.

Wrapping up

When you focus too closely on short-term goals, you can miss out on something more important in the bigger picture. For mature companies, the quarterly goals approach may work at times, but adaptability is vital in today's lightning-fast business environment. For startups and growth equity companies, take a longer view. It's important to have a clear vision for your company, but be open to shift priorities based on business needs and emerging opportunities.

BLOOMBERG: Centric Digital's Manning on Which Companies Leading Digital Home Revolution

Bloomberg Markets AM with Pimm Fox and Lisa Abramowicz.GUEST: Brian Manning, co-Founder of Centric Digital and co-author of "Digital Transformation," on the companies that are leading the digital home revolution.

Opinion 5 insurance challenges digital can solve

Not so long ago, insurance was a slow moving industry influenced primarily by tight regulation and an agent-driven distribution channel. But it is not your imagination: the rate of digital change is accelerating. As the Internet began to change everything from ordering a pizza to paying bills, insurers changed the speed at which they offered products and consumers fundamentally changed their expectations for what digital interactions should look and feel like. The proliferation of smart devices threw gasoline on this fire, creating an entirely new digital insurance ecosystem.That frantic pace has yet to abate. Digital insurance capabilities continue to advance. The pressure faced by top carriers to constantly evolve is only increased by nimble leaders outside the insurance industry like Amazon or Netflix, which consistently raise an already high-bar for digital interactions.Unfortunately, while the industry continues to make upgrades in terms of their digital capabilities, most insurers are actually falling further behind in the high-stakes battle to meet customer expectations. Indeed, in a new study that tracks the digital experience of P&C insurance customers, J.D. Power and Centric Digital find that the insurance industry lags far beyond many other service industries when it comes to delivering a truly engaging, impactful digital customer experience.So how can carriers respond to keep pace with consumers’ constantly evolving digital expectations?Drawing on the results of our 2018 Digital Experience Study, released today, J.D. Power and Centric Digital have highlighted some of the top challenges currently confronting the industry, and highlighted examples where top performers are starting to establish a set of digital best practices.

1. Focus on Digital Proficiency in Customer Service

The modern customer experience is heavily driven and supported by a firm’s digital ecosystem, even in relationship-based industries. To create an elegant experience, insurers should use digital to connect their customer touch points to create a frictionless, personalized focused on the specific, contextualized needs of a consumer.The strength and weaknesses of an insurer’s digital capabilities are evident in the satisfaction and loyalty of their customers. A poor experience makes customer retention less likely and a negative reputation more likely, as seen by the correlation between the customer experience scores and customer satisfaction illustrated in our study. One might expect this to spur insurance companies to emphasize digital best practices. Unfortunately, this is not always the case. Overcoming a negative reputation is certainly a tough chore and can lead to capital better spent elsewhere tied up re-engaging with a small subset of customers.The study found that most digital content for insurance brands is well-maintained, relevant, and helpful in basic digital capabilities on a 1,000-point scale, qualities like site organization, branding, and responsiveness scored 947, 905, and 895, respectively. However, they often lack the functionality of more modern digital interactions.So, while insurance companies have the basics down, insurers continue to lag other industries in terms of digital performance. With an increasingly competitive insurance marketplace influenced by empowered consumers, carriers must do a better job in digital customer service if they expect to remain competitive in the long-term.

2. Personalization Key to Digital Adoption

Insurers are falling short in terms of providing customers with relevant and personalized digital experiences. According to the study, 42% of insurers do not meet best practices related to digital cross-channel personalization. This may include knowing the customer across channels, tailoring products and offerings to meet their unique needs, and anticipating what potential customers may need and want.Relevancy of information is key. Consumers are bombarded with constant messaging, most of which is off target. Personalization that delivers the most useful content or experience at a customer's moment of need promises to address this issue – but it must be used correctly.Carriers should begin by improving personalization within a few product lines or segments and then shift focus on digital to help scale across all customer interactions. They should also view digital capabilities as a core focus of customer service and interaction, rather than as more of a support to general business functions.

3. Deliver More Consistency Across Digital Experiences

Each customer wants to interact with a brand in a different way. It is important to allow customers to communicate and interact through the channel they prefer.Our study found that, among shoppers who wished to contact the insurer during the quoting process, over half of them wanted contact by some method other than phone, including chat, mobile, and website. Further, consumers expect those interactions to be seamless across channels, so that an interaction with an agent should be updated to their online profiles soon after completion.Failure to meet these expectations has already opened the door to insurtech disrupters. Consider Lemonade, the property and casualty insurance company offering renters and home insurance policies, which employs “Maya,” an artificial intelligence bot. The firm leverages chat functionality when quoting and enrolling customers to simplify onboarding and aims to maintain this improved experience across all channels. While currently unique to Lemonade, this process is increasingly typical of what customers expect. Expect other insurers to meet the demand sooner rather than later.Having a consistent omnichannel experience to represent a brand has never been more important for insurers, even for those with “direct” business models. Yet 38% of the categories assessed in our study registered at parity or below for digital proficiency. Inconsistency erodes brand quality, customer stickiness, and consumer loyalty -- three key factors that define longevity of relationships with policyholders.Customers expect a seamless omnichannel experience, but few insurers are getting it right. Insurance companies must ensure they’re providing easy access to customer service across channels when needed—whether the policyholder is at a location, scrolling through an app, or browsing the website. Continuity of experience goes beyond putting the customer service phone number in bold font. Whether maintaining a clear connection within and between your 1-800 number, live agent chat windows, or online self-help libraries, it’s about consistent communication with customers in a way that meets their needs.

4. Improve Digital Optimization with Recognizability

Our study found 50% of insurance brands below parity level in digital channel proficiency, suggesting that even companies already heavily invested in digital, like direct-to-consumer leaders, have left behind digitally enabling communication. Experience and channels currently undeveloped include immersive mobile app capabilities, seamless omnichannel experience, presenting a single visual style to customers, and more efficient chat.Take, for example, chat and chatbots, a great technology option for companies to augment traditional communication channels. Leveraging artificial intelligence, insurers can employ a digital customer service representative to guide policyholders to necessary information, then pass customers to a live representative if all alternatives have been exhausted. The result is a more cost-effective, streamlined customer service experience. Yet despite the clear return on investment, only 74% of the insurance we evaluated have basic webchat.Also consider the missed growth opportunities. Prospective customers using chat when obtaining a quote were more likely to buy online than those who obtained quotes online but did not use live chat (17% vs. 12%, respectively).

5. Include Digital Best Practice Benchmarks from Outside the Insurance Industry

Hari Gopalkrishnan, CIO of client-facing platforms at Bank of America, noted: “Our customers don’t benchmark us against banks. They benchmark us against Uber and Amazon.” No doubt he is right: consumers expect digital best practices across all brands and refuse to wait for a technology to pierce an industry before judging brands deficient.A handful of digitally native firms drive consumer expectations, acclimate customers to changes, and cause individuals to integrate habits into their routines when they introduce new technologies or experiences. Brands that understand these expectations and adapt accordingly are winning in the minds of customers.Look no further than Target, which recently merged its Cartwheel couponing and offer app into its full-service mobile app. The powerful nature of the two successful apps under one umbrella app made features that drove one app available to both experiences. It also allowed for the simultaneous introduction of Apple Watch integration, instead of leading with one app and leaving consumers dissatisfied with the other.ConclusionStakes are high for insurance companies in the digital space. Firms can no longer look at digital in a vacuum and instead should put customer digital expectations driven by their competitors as well as digitally-skilled companies in other industries at the top of their minds. They must support their digital ecosystem with not only good design, but delivery of seamless experiences. Digital innovators that promise strong capabilities may be well‐positioned to fill the gap left by insurers that are slow to adopt digital capabilities. Data has shown that unmet consumer expectations are linked to satisfaction and, from there, directly to business success. Billions hang in the balance.Tom SuperTom Super is Director of J.D. Power’s Insurance Practice.Jared StevensonJared Stevenson is manager of business development and partnerships at Centric Digital.Peter R. SmithPeter Smith is a VP for Centric Digital.

Insurance Companies Falling Short on Digital Customer Engagement

Functionality, Personalization and Consistency Emerge as Core Focus Areas for Top-Performing CarriersCOSTA MESA, Calif.: 28 June 2018 — Property & casualty (P&C) insurance companies are failing to meet their customers’ expectations when it comes to digital interactions, according to the J.D. Power 2018 Insurance Digital Experience Study.SM“The customer expectation for a standout digital experience is rapidly being set by digital-native consumer brands like Amazon, Netflix and Uber,” said Tom Super, Director of the Property & Casualty Insurance Practice at J.D. Power. “Like it or not, those are the user experiences against which today’s consumer-facing insurers are competing. While many insurers are falling short, the leaders are establishing best practices for how to build engagement, create personalized digital experiences and deliver consistency across digital components.”This year’s study was expanded to include an assessment of a carrier’s overall digital performance based on an industry agnostic view of digital best practices, combined with customer perceptions of their interactions with the 19 largest P&C insurance brands in the United States. The study was conducted in partnership with Centric Digital, a leading digital transformation partner, to provide an industry benchmarking and digital experience analysis supported by J.D. Power’s analysis. The combined approaches uncovered clear insights into what digital means for insurers and their customers.Following are key findings of the 2018 study:

• Surface-level design masks poor insurance functionality: While insurers have succeeded in creating attractive user interfaces, they have lagged when it comes to core insurance functionality. Most insurers’ digital offerings are lacking in insurance-specific capabilities such as processing claims, effective shopping and servicing of policies. As consumers increasingly expect to interact seamlessly with an insurance brand—regardless of the channel—most insurers are falling short on digital capabilities.
• Personalization and consistency needed industry-wide: Across the study, insurers that perform highest in personalization—by aligning insurance offerings and customer needs; offering benefits tailored to certain customers; and delivering timely guidance—tend to have high digital customer satisfaction scores. Likewise, those that deliver consistently across digital components—ranging from chatbots to app features—earn the highest satisfaction scores.
• Allstate performs well in digital shopping: Among the top performers in the study for overall insurance shopping experience, Allstate scores 808 (on a 1,000-point scale) for shopping satisfaction, significantly above the industry average of 779. This high score is driven by strong performance in three shopping factors: ease of navigation; availability of key information; and clarity of information.
• GEICO sets the bar for digital service experience: Among the top performers in the study for service experience, GEICO scores 878 for service satisfaction, significantly above the industry average of 850. This high score is driven by strong performance in all five servicing factors in the study: ease of navigation; appearance; availability of key information; range of services; and clarity of information.

“The modern customer experience is heavily driven and supported by a company’s digital ecosystem, even in relationship-based industries,” said Peter Smith, Vice President and Head of West, at Centric Digital. “To create an engaging experience, insurers should use digital to connect their customer touch points to create a frictionless, personalized experience focused on the specific, contextualized needs of a consumer.”The 2018 Insurance Digital Experience Study is based on evaluations from 11,304 respondents, and was fielded in February-March 2018.J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.Centric Digital provides industry leading solutions to measure and navigate digital transformation. Powered by proprietary platform DIMENSIONS™, Centric Digital has benchmarked hundreds of brands, designed multi-year transformation strategies, unlocked and managed $2+ billion of investment roadmaps. Centric Digital is headquartered in New York City, with offices in Chicago and Mendoza, Argentina. Visit centricdigital.com to learn more.Media Relations ContactsGeno Effler; Costa Mesa, Calif.; 714-621-6224; media.relations@jdpa.com(link sends e-mail)John Roderick; St. James, N.Y.; 631-584-2200; john@jroderick.com(link sends e-mail)About J.D. Power and Advertising/Promotional Ruleswww.jdpower.com/about-us/press-release-infoSOURCE J.D. Power

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Is it too Late to Say Sorry? These 2 Companies are Trying to Win Back Your Trust

Forgive and forget. Facebook and Wells Fargo are asking you to do both.

In an attempt to win back customers after a string of public scandals, these two companies produced and aired apology videos intended to tug on the emotions of past, present, and future.

Facebook's video reminds customers why they started using the social networking site in the first place, while Wells Fargo highlights their deep roots in banking. Both companies then go on to admit--in some respect--that they messed up. These admissions end with a promise to do better in the future. But is it too little, too late?

Before we jump into that possibility, let's take a look at what went wrong to find out if it's possible for these companies to make things right.

The Facebook and Cambridge Analytica scandal

Anthem, Target, and Equifax were thrown into chaos when hackers breached their systems and made off with customer data. While these scandals rocked headlines and damaged trust, they happened on a very different playing field when compared to the Facebook incident.

In fact, there are (at least) three types of data privacy breaches:

1. You give away too much information online and it's used against you.Example: You post throwback photos of college party nights and a job recruiter spots them while performing your background check.
2. The information you've given to a company gets hacked.Example: You add credit card information to your Target.com account and hackers break into their system to retrieve it.
3. The information you've given to a company is sold off or given away.Example: The Facebook and Cambridge Analytica scandal.

Example #1 is like leaving your front door unlocked, making it easy for a burglar to come in and take what they want. Example #2 is entrusting your home to a security company, but the security company is ill-equipped to keep your home safe. But the one that really stands out from the rest is example #3. In this example, you entrust your home to a security company, and that company then goes and invites burglars to your house to take whatever they want.

This is why Facebook is now scrambling and begging for forgiveness. What happened with Cambridge Analytica was a complete misuse of Facebook user information and it's unclear if that trust will ever be restored. Yet, they're relying pretty heavily on an apology video to try to accomplish this feat.

The Wells Fargo fake accounts disaster

For the past two years, Wells Fargo has been in some serious hot water--not just with customers, but the Federal Reserve as well. Whistleblowers and outspoken employees exposed that the company was creating fake bank and credit card accounts using real customer information.

Early this year, the Federal Reserve even put limits on Wells Fargo's growth until the company could prove it was complying with bank regulations.

Now they're trying to, "fix what went wrong and making things right" with an apology video and other key changes to internal policy and procedures.

Does an apology even matter?

I was fortunate enough to attend this year's Berkshire Hathaway's annual shareholder meeting. Of course, Warren Buffett was there and inevitably, someone asked how he could continue to invest in a company like Wells Fargo after the events of the past year.

Buffet responded: "All the big banks have had troubles of one sort or another and I see no reason why Wells Fargo as a company, from both an investment standpoint and a moral standpoint going forward, is in any way inferior to the other big banks with which it competes."

But the real takeaway was when he pointed out that what happened at Wells Fargo could have happened anywhere.

"We know people are doing something wrong as we sit here at Berkshire. You can't have 370,000 employees and expect that everyone is behaving like Ben Franklin."

While not excusing the behavior, it's true that you can't control every element of what goes on in a very large company. Bad apples turn up from time to time. And these bad apples can spread and put the entire company at risk. But, if you're able to identify the problem and weed it out, then you do have a chance of saving the whole company.

Even without the apology video, Wells Fargo could simply focus on weeding out the problem and still be in good shape to carry on business as usual.

Final word

An apology video alone isn't going to restore trust in Facebook or Wells Fargo. The true test will be if these companies actually deliver on their promises to fix the problems and do better in the future. If they can deliver on those promises, then the negative impact on their business and their brand will have been mitigated successfully.

10 Top Talents that Effective Innovators Possess

What do Elon Musk, Jeff Bezos, and Jessica Alba have in common? More than you might think.

While Bezos never acted in blockbuster movies and Alba never launched a car into space, these three powerhouse innovators share key talents and skills across the board.

So, what are the top talents and skills that effective innovators like Musk, Bezos, and Alba possess? Let’s take a look.

1. Confidence

When you’re leading a company or trying to bring an idea to life, confidence is absolutely essential. You need to believe in yourself, believe in the product, and believe in the possibility of a bright future. This is what will draw others to your cause-;from key investors to potential customers.

2. Grit

Also known as “determination,” grit is often what separates the wheat from the chaff. Pioneering psychologist Angela Duckworth even wrote a fascinating book on this topic that’s definitely worth the read. But one of the biggest takeaways from that book was that Duckworth discovered talent usually takes a back seat to resilience and drive. Grit is what pushes innovators forward.

3. Independence

When you go out on a limb to create something, you’re often alone in the process. Even Jessica Alba stated she felt alone in the early stages of building The Honest Company. There were some decisions she made that forced her to draw a line in the sand and stand her ground against other stakeholders in the company.

If you’re going to build the company or product you want, a strong independent streak will help carry you through the tough times.

4. Curiosity

Famous copywriter and art collector Eugene Schwartz once stated that creation isn’t bringing something completely new into existence. Instead, creativity is when you bring together separate entities that have never been joined before. Uber is a great example of this in action. This startup didn’t invent the idea of ride sharing, but it was the first to connect this concept with the latest digital technologies.

Without the drive to explore and learn new things, you’ll never know what concepts can be joined together to create something truly revolutionary and groundbreaking.

5. Disruption

The status quo is never good enough for innovators. They often shake things up-;and sometimes just to see what the reaction will be. But in doing so, they can find ways to work smarter, not harder. And this is what enables them to do more with much less.

6. Delegation

While smart innovators tend to be fiercely independent, they don’t try to do everything themselves. It’s an inefficient system and they know it. Instead, they find the right people for the right positions and empower them to do their job as best as they can. This enables them to focus on the areas in which they excel.

7. Profitability

Cash is king. No question. The last thing you want to do is create a great product or company that's great in theory but struggles to make a profit of any sort. Truly great innovators find a way to strike a balance between keeping an eye on the profits while blazing new paths forward.

8. Networking

You cannot be a successful innovator without a solid network. Whether it’s from a personal or professional standpoint, you’ll need support and partnerships to make real change.

9. Trust

You’re rolling the dice when it comes to anything you build or create. The effective innovators are the ones who know when to take a big risk and when to hold back. They also know to listen to their gut even when the data might be telling them otherwise. Sometimes, you have to take a leap of faith and trust it will all work out in the end.

10. Salesmanship

If you want your business or product to take off, then you need to be able to sell it. You’ll need to make a convincing pitch to investors and persuade customers to make a purchase. The successful innovators are the ones who can sell their innovations in their sleep.

Final word

Possessing these skills and talents will help you take your innovations-;whether it’s a new company or a book you wrote-;to new heights. However, don’t feel discouraged if you don’t possess all 10. These talents-;like any other talent-;can be honed and developed over time. All you need to do is practice.

Jeff Bezos Banned This from Meetings, But It's Not Dead Yet

We’ve all sat through “that” meeting. The presenter talks through slides of bulleted lists with half-baked talking points. As the presenter reads the bullets on screen, it’s hard not to wonder what else you could be doing with your time. So, it goes without saying that I was hardly shocked when-;after years of enduring ineffective presentations where PowerPoint is used as a crutch-;Jeff Bezos outlawed PowerPoint for Amazon’s executive meetings.

And when Amazon does something, many other companies will soon follow suit. But before you send out a memo forbidding the use of PowerPoint at your next meeting, keep in mind that this presenting tool isn’t dead just yet.

Amazon’s decree was more about eliminating bad presentations than it was about PowerPoint itself. What Amazon executives have replaced PowerPoint with is, essentially, an essay that’s sent out before the meeting. After everyone has read it, the teams meet in person to discuss. This method forces people to focus on the narrative but sometimes a long essay can be just as boring as a terrible presentation.

Eliminating PowerPoint specifically isn’t going to solve the problem. Instead, we need to focus on using tried-and-true best practices. So, if you want to create a PowerPoint presentation so powerful that Jeff Bezos might rescind his edict, then try a few of these tips in your next talk.

Tell a story

Storytelling is an incredibly powerful tool.

According to an article from Harvard Business Review, "Organizational psychologist Peg Neuhauser found that learning...from a well-told story is remembered more accurately, and for far longer, than learning derived from facts and figures. Similarly, psychologist Jerome Bruner’s research suggests that facts are 20 times more likely to be remembered if they’re part of a story."

You can add storytelling elements into your next presentation without requiring your audience to read an essay beforehand. That’s the beauty of presenting-;you get to take the audience on the journey with you. This is even what the curator of TED recommends when coaching presenters for TED Talks.

Your presentation should have a story arc with a beginning, middle, and end. Start with conflict and end with resolution (or an open forum for discussing ideas). This technique can work on anything whether it’s the annual business report or a pitch for investor funding.

A (good) picture is worth a thousand words

There’s a time and place for visuals in your presentation. When done well, a photo or illustration can really bring a point home. For example, if you’re talking about the success of the company’s volunteer program, then use an emotional photo to illustrate the impact your company made during the program.

But remember, your visuals need to tie into your story and get to the point quickly. Avoid relying too heavily on visual-;you don’t want to turn the presentation into a dreaded slideshow.

Consider using (short) videos

Similar to the photo concept, playing a video can also be a powerful way to highlight your story. Keep these videos short-;30-60 seconds-;and even consider recording narration over them (this will give you a quick break to take a breath or sip some water).

Introducing a video is also a great way to shake up the presentation. Videos can grab your audience's’ attention while illustrating points that may be a bit too abstract to describe. So, instead of explaining why the new content management system will make life easier, show a quick video of how it works in action.

Get interactive

Attention spans only seem to be getting shorter. One way to keep your audience engaged throughout the presentation is by making them a part of it. Open up the floor for questions after each slide and give people the opportunity to speak up. If you’re concerned about the topic going off course or running out of time, feel free to table a specific question to the end. The key is to allow the conversation to be organic while making sure the train stays on the rails.

Final word

When Bezos banned PowerPoint he wasn’t simply banning the software. He was eliminating a tool that so many presenters have abused for far too long. PowerPoint isn’t a crutch. It isn’t a tool to help you remember your lines. It’s a program that, when used well, can help you hammer your point home. With the right use of storytelling, visuals, and interactivity, you can create an effective presentation that even Jeff Bezos would love.

These 4 Companies Have Been Saved by Digital Transformation

Bon-Ton, Radioshack, Toys "R" Us, IHeartMedia--these are just a few of the companies that filed for chapter 11 in the past year. Both the retail industry and media industry have struggled to keep pace with our evolving digital world, but many other industries are facing similar challenges.However, where some companies are failing, others are making tremendous strides forward. There are many traditionally based businesses--companies that have been operating well before the Digital Age changed everything--that have embraced digital transformation with open arms. These companies have incorporated omni-channel shopping experiences, invested in IoT sensors, leveraged data analyzation, and more. Their leadership is not afraid to shake up the status quo while keeping a keen eye on future tech and trends. So, even though entire industries may be facing disruption on many fronts, these companies have found a way to beat the competition and continue delighting their customers.Here are just a few examples of companies that have successfully leveraged digital strategies to thrive in today's hyper-competitive markets:

New York Times

Twenty years ago, if you hopped on the subway during rush hour in Manhattan, you'd be surrounded by people with their noses buried in newspapers. Today, however, everyone's attention is glued to their phones instead.Digital has been killing the media industry--particularly publishing and newspapers--for over 15 years now. According to The Atlantic, "Between 2000 and 2015, print newspaper advertising revenue fell from about $60 billion to about $20 billion, wiping out the gains of the previous 50 years."But one newspaper managed to navigate these turbulent waters by embracing digital. The New York Times decided to implement a successful subscription model for their online content that allowed the company to continue to deliver the same type of high-quality journalism and content their readers trusted for over 167 years. They don't rely on ads or clicks so they can make content decisions based on journalism principles instead of the advertiser's demands.This method appears to be working. According to their January 2017 report, "Last year, The Times brought in almost $500 million in purely digital revenue, which is far more than the digital revenues reported by many other leading publications (including BuzzFeed, The Guardian and The Washington Post) -- combined."

Fidelity

Founded in 1946, Fidelity has come a long way when it comes to digital transformation. While many other companies in the financial industry have struggled to compete with fintech startups, this multinational financial services corporation has been betting big on digital and it shows.The mobile app, in particular, is one of Fidelity's shining achievements. With a current rating of 4.7 stars and a half a million reviews on Apple, it's safe to say customers are happy with the Fidelity app experience. One of the biggest wins is that this company managed to successfully mimic the desktop trading experience in the app--allowing customers to make trades and invest on the go.

Disney Parks

While Disney is definitely not a princess that needed to be saved, it's important to make note of their impressive digital transformation efforts.In 2015, Disney Parks announced it would be investing $1 billion in IoT sensors to be used throughout their parks. Today, guests who attend Disney World get a MagicBand wristband that uses RFID technology to make their time in the park seem even more magical. These bands act as payment, hotel room keys, and even ride tickets. And the data Disney collects as their customers use these bands only helps the company find more ways to improve the user experience.

Walmart

While smaller retailers are dropping like flies, it's only a matter of time before Amazon starts taking out the big name players like Target, Home Depot, Best Buy, or Walmart. The latter, however, decided to take action rather than sit on the sidelines and wait for the inevitable.Walmart has been squaring up with Amazon by changing its online return policies to make things easier for consumers, offering the lowest prices, and promoting the fact that you don't need a membership to order online (this latest ad hit right when Amazon increased Prime memberships).But it doesn't stop there. Walmart has also diversified its offerings--buying up online brand names like Jet and Mod Cloth and even selling clothes from Lord & Taylor. In addition, the Walmart mobile app continues to improve the customer experience. The latest update allows customers to add up the costs (including sales tax) on their shopping lists before they even leave the house. Once a customer gets to the store, they can interact with the app's "store assistant" to guide them to items on their list via a map.The Harvard Business Review sums these efforts up nicely: "Walmart is increasingly becoming a 'digital winner', as it builds out a fast-growing ecommerce business and also leads in digital innovations when compared to other brick-and-mortar retailers."This is one company that's leaning into digital hard, and giving Amazon a run for their customers' money.

Wrapping up

While each of the above companies uses different strategies when it comes to digital transformation there is one common denominator across the board: a better experience for the customer. The companies that are successful in digital are the ones who put the customer at the center of everything they do. No matter how the technology continues to evolve, the brands that focus on the customer will know the best ways to transform moving forward.

How to Break Down Silos Across Your Company

Innovation, collaboration, and agility cannot thrive in a siloed work environment. When one department isn't working with another, it holds everyone back.Unfortunately, silos are a common blight for today's companies--especially in larger, more traditional businesses. They are often the side effect of rapid growth, office politics, or an overall lack of transparency and communication across the company.But if you're going to survive in today's increasingly digital landscape, you need to break down the internal, invisible walls that are dividing your company--and you need to do it quickly. Why? Because smaller, leaner startups are out there and they're plotting ways to disrupt your industry as we speak. The employees of these agile startups can work together like a special ops military task force, and with the right innovative idea and strategic execution they can take down a siloed Goliath any day of the week.So, if you're ready to tear down walls and create a unified front to better serve your customers and stop the competition in their tracks, here's what you need to do:

Put an end to office politics

Lines are often drawn in the sand when departments feel threatened by one another. For whatever reason, instead of collaborating, one team may feel like another team is going to steal their jobs. The SEO department might feel threatened by the UX team and will hide important project details to keep UX from stealing their work. This all needs to stop.While this is often easier said than done, business leaders can now harness the power of data to put an end to office politics. When your company is digital, you can align job roles and responsibilities to key metrics. You are then able to hold your employees accountable to the numbers--in addition to each other. You may even find employees are more willing to work together when they all need to meet certain objectives and metrics.

Set up an ambassador program

To maintain diplomatic relations with the rest of the world, the U.S. sends ambassadors or diplomats to live in other countries as our representatives. So, why don't we use this same premise in large business settings?Each department could send a representative to go and sit with another department across the organization for a few days or even a week. This person could gather key insights into the operations of that department while sharing insight about what their team is working on. The cross-pollination could yield innovative solutions or products and improve working relationships across the organization.

Re-imagine the workplace

For years offices functioned by grouping department with department, team with team, and sectioning them off in clusters of cubicles and offices to one designated area of the building. Second floor is accounting, third floor is marketing--and so on. But this type of setup immediately sets the everyday tone that your departments have clear and distinct territories, which encourages silos.While creating a strictly open-floor-plan office isn't the answer, there is something to be said about the collaborative environment it promotes. When you get people out of the cubicles and create opportunities for cross-department connections, you're essentially creating an atmosphere where innovation can flourish.And aside from the logistics of the physical work environment, consider re-imagining the digital work environment as well. The first step would be to go paperless. You can do this through project management solutions like Basecamp and Asana, which can make it easier for teams to work together no matter where they are in the building, country, or world.

Final word

A business divided cannot stand--especially when agile startups are out there, drawing up plans to disrupt your industry. To beat them at their own game and to innovate effectively in today's fast-paced business world, your entire company needs to be united across the board. Start tearing down the silos in your organization today--before it's too late.

This Is the Trouble With the Facebook Data Scandal Most People are Missing

There's an old fable about a frog and a scorpion. If you've heard it before, I'm sure you're already drawing the connections. It goes something like this:

A frog and a scorpion both need to cross a river. The scorpion offers to let the frog ride on his back as he swims to the other side. The frog is hesitant and asks the scorpion if it plans on stinging him. After several reassurances from the scorpion, the frog hops on the scorpion's back and they make their way across the river. But just before they reach the other side, the scorpion stings the frog. When the frog asks why it just condemned them both to death by stinging him, the scorpion replies that it's in its nature to do so.

I can't help but draw parallels between this story and the Facebook and Cambridge Analytica data scandal that's been rocking headlines over the past few weeks.

The shock, anger, and uproar over this egregious data misuse is all warranted, but a scorpion is going to do what a scorpion does. Facebook's sole purpose since its inception is to entice you to hand over as much of your personal information as possible. Most people think of Facebook as a "free" service but it is not free, you pay for it by providing your information, which is of extreme value. In turn Facebook, sells this information and makes a huge profit. Blindly trusting a company with your personal information is like trusting a scorpion to carry you safely across the river.

Is your personal information safe online?

The short answer: no. If you post something--anything--online, to the cloud, or to a social- media account, it's vulnerable to hacking, harvesting, getting leaked, or just simply being sold (in the case of companies that literally profit from the sale of your personal information). In fact, one of the latest unfortunate data harvesting trends is that bots are now sidestepping newly tightened Facebook and Instagram privacy policies to collect personal data anyway.

Unfortunately, there's no immediate solution here. The world is becoming more digital and our everyday lives--from social interactions to professional connections--are online now more than ever, and legislation and information security implementation are not keeping pace. In the near term, the key to safely participating in the digital world is to proceed with an abundance of caution and be on high alert.

Here are a few ways to protect your privacy at a reasonable level:

Read the privacy policies.

Whenever you do business with a company online, get to know their privacy policies. This means reading the fine print before clicking the "I Accept" button. You might be shocked at what you find in there. And if you do find anything in the terms that you do not agree with, you'll need to weigh the need for the service versus the potential risk to your privacy.

Avoid sharing information you wouldn't want leaked.

At this point, we all know that risqué photos posted anywhere online can and do come back to haunt people--particularly during job interviews. But beyond being smart about what you post, think twice about what you like, comment, or share on any social-media platform, blog post, or forum. The details you give out might be traced back to you or sold off to the highest bidder.

Give out the minimum amount of information.

Very often, even when buying basics at a big box store, you are asked for information. Someone at the checkout counter may ask you for your email address, for example. You can and should question any company that is asking for your personal information. Give them the least amount necessary and, if possible, give them nothing. It rarely benefits you for corporations to have more information about you and your family.

Lobby for change.

When these scandals or hacks happen, the initial uproar fades over time. But, in terms of data privacy, if we want real change to happen, legislation needs to be made and companies need to be held accountable. This requires all of us to take a proactive approach by contacting our politicians, signing petitions, and pushing for change long after the dust settles on each of these scandals.

Final word.

The information we share online is vulnerable. Our technology does not guarantee that the data or information we share won't get hacked, stolen, or leaked. While this is disconcerting, there are things you can do to protect yourself. By becoming an informed user, thinking through the information you want to share, and pushing for a change to data privacy legislation, you can avoid getting stung by the scorpions of the world.

Bloomberg Markets: Amazon Dominates Retail and Tech

Bloomberg Markets with Carol Massar.GUESTS: Brian Manning President Centric Digital LLC Discussing Amazon earnings and how that impacts retail. Dina Bass, Bloomberg News Technology Reporter, also participates in the discussion.Rand Fishkin Founder Moz Discussing his book "Lost and Founder: A Painfully Honest Field Guide to the Startup World."Fernando Valle Oil & Gas Analyst Bloomberg Intelligence Discussing ExxonMobil and Chevron earnings.Douglas G Ciocca CEO/Partner Kavar Capital Partners LLC Discussing markets, economy and investing.Thomas Flohr Chairman/Founder VistaJet Operations Holding SA Discussing the 2018 Jet Traveler Report and the business of private aviation.This is a Bloomberg podcast. To download, watch or listen to this report now, click on the thumbnail/player on the sidebar.

6 Surefire Ways to Protect Yourself from Data Leaks, Hacks, and Scandals

Progress comes with certain risks. As we move deeper into the Digital Age, we're still trying to figure out what the new normal is--especially when it comes to the business world.

Some businesses continue to struggle with ingraining digital into their company's DNA, while others are easily implementing digital policies and procedures.But as companies continue to figure out how to properly and efficiently run business in our digital world, things like data hacks, leaks, and scandals will continue to take place.

So, how can we protect ourselves as consumers as the business world continues to struggle with how to manage digital best practices?

Well, until there is technology that can ensure the safety of our information, or until we have legislation in place that protects our data, we, unfortunately, often need to take matters into our own hands.

Here are a few measures you can take to protect your personal information and yourself:

1. Reconsider what you give away

One of the best ways to safeguard your personal data is to put less information online. This goes beyond sharing on social media--have you recently given your telephone number to a retail store associate? Or wrote your email address on a sign-up sheet at a local yoga studio? If so, then you just might start getting phone calls or emails from unknown solicitors.

A good rule of thumb is to only give away the information that is absolutely necessary.

On a similar note, when it comes to social media, consider what would happen if your information ended up in the wrong hands before posting, sharing, or liking anything. Would you be okay with your boss seeing the results of a random Facebook quiz you took? If not, then it's best to opt out of the quiz.

2. Use password managers

Do you use passwords that have commonly used words in them? Do you use the same password for multiple accounts? Do you keep the same password for years? If so, then your account is not as secure as you may think. To improve the security of your online accounts you must:

• Change passwords frequently
• Use passwords that are a mix of random upper and lowercase letters with special characters and numbers
• Make sure your passwords are different for every account

If this sounds difficult to keep track of, don't worry. Password managers are designed to help you keep track of your accounts without having to remember every random password you've created. To be even more thorough,you can ensure the security of your password manager account with two-factor authentication.

3. Try two-factor authentication

In combination with the password manager above, two-factor authentication requires additional verification--aside from the username and password--to access an account. This could be a special code number sent as a text message to the phone number associated with your account or a two-factor authentication product, like a Yubikey or RSA token.

4. Get encrypted

If you're storing data on any server or cloud (keep in mind this includes storage services like Google Drive or Apple Photos), make sure you can encrypt the information you're storing. This way, if the servers or accounts are compromised, then the data will still be difficult to access.

5. Read the privacy policies

Do you read all the fine print in the terms and conditions before hitting "I Accept"? Most of us don't, but if you want to safeguard yourself against shady data share policies, then reading that fine print is a must. Of course, the result of this is not signing up for the whatever product or service you want to use. But if more people declined to accept because they disagreed with certain terms or conditions, then many companies would be forced to change their policies.

6. Monitor your credit

Many sites like Credit Karma will allow you to keep an eye on your credit without pulling an actual report (which can negatively impact your score). In fact, many banks will offer this as a free service through your account or in the app.

So, make it a practice to check in on your credit often. This way, if someone tries to use your information to make a big purchase, you'll know about it right away and can stop that train from going completely off the rails.

Final word

Our digital world is continuing to evolve, and hopefully emerging technologies and data privacy policies will continue to adapt to make things safer for consumers in the future. But for now, it can be a dangerous online world to live in for anyone who wants to keep their information private. Until technology becomes more secure or stricter legislation is passed, our best bet is to be proactive in the measures we can personally take to protect our own privacy.

Where Does Your Company Score on the Digital Readiness Scale?

In the age of disruption, making sure your company is digitally ready is no longer an option--it's a necessity.In fact, I'd argue that every company today is already a digital company by requirement--just some are (much) better at it than others. A local doctor's office, for example, might still be using paper files and mailing appointment reminders--but most of their target market is living online. And even aside from the customer base, digital technologies can be used to improve internal efficiencies, streamline operations, and boost the bottom line.So, from digitally native companies like Google to traditional businesses like your local doctor's office (many of which are now using iPads to check you in for an appointment)--where does your company rank on the digital readiness scale?If you find yourself at the very bottom of the scale, then digital transformation is a must.But the unfortunate reality is many of the companies that attempt digital transformation, fail. And considering the latest news that Toys "R" Us is closing up for good, this notion couldn't be more timely.So, why do so many traditional companies struggle with digital? From personal experience, I can tell you it's not from a lack of trying.The problem typically starts when leadership invests too much time or energy in the wrong digital efforts. Some companies will invest in splashy tech like virtual reality instead of optimizing digital communication channels.But these types of missteps can be avoided by measuring and contextualizing digital performance on a regular basis.

Measurement matters and context is king

To begin, your organization needs to know where your company ranks digitally--are you a Google or a Toys "R" Us?--and you can determine this by creating a baseline.Your baseline should gauge the level of digital aptitude across your organization from people to platforms--and everything in between.From there, you'll need to add context around the data you've gathered. At the baseline level, you may have every reason to believe your marketing team is digitally savvy and sophisticated--but how do they stack up to the competition? And better yet, how do they stack up against the digital expansion efforts of a company like Amazon?This is key--context doesn't stop at your competition. If you don't know how the digital space is evolving outside of your industry, you'll never grow beyond your direct competitor. Instead, compare your baseline to other companies outside of your industry--even if they have nothing to do with your business. They might have game-changing best practices, tips, and ideas you can use to disrupt your own industry from the inside out.

Partnering with non-competitors

Succeeding in today's business world is no longer about finding out what the competition is doing and beating them at their own game. It's about coming up with new and innovative solutions before your competition can even think of a new idea.And one of the best ways to do this is to analyze what your non-competitors are doing. You can leverage some great digital techniques, capabilities, and best practices that businesses outside your industry might following. Would the premise behind a dating app work to match your customers to products they might like? Or maybe you can use Facebook or Reddit's gamification techniques to build customer loyalty.This also opens the door to potential partnerships. Amazon, Berkshire Hathaway, and JPMorgan Chase is a prime example of this in action. These three companies from different industries decided to work together to create a digital solution to solve the issues surrounding healthcare. Each company has something to offer the other in a mutually beneficial relationship that will advance the future of healthcare--while the current players in that industry continue to struggle with digital transformation.Consider which businesses you might be able to partner with outside of your own industry. You can enter into this partnership with the aim to share best practices or to create something new and fresh in the marketplace using your combined expertise.

Wrapping up

To remain competitive and innovative, your business must stay aware of how it is benchmarking on the digital scale. But it's not enough to know where you rank in your own industry and against your direct competitors. Leadership needs to have the right context on how they're performing in digital across the board. If you don't know, you're leaving yourself open to disruption.

4 Smart Digital Capabilities You Can Swipe

Ever hear of a swipe file?In the advertising world, it's a collection of successful ads that a copywriter or creative director will keep on hand for reference. These files can be worth their weight in gold. Why reinvent the wheel on a creative project when excellent and successful ideas are already out there?But don't worry--we're not talking about plagiarism. Advertising pros only use swipe files as a source of inspiration. When taken and applied to a new project, they don't have to struggle from scratch--they already have the foundation for a successful campaign.And you can use a similar approach when it comes to enhancing your company's digital presence.

Looking for (digital) ideas in all the wrong places

In our digital business era, it's not enough to just barely beat our competitors--we need to knock it out of the park. We need to make sure we're digitally transforming to one day beat the likes of Amazon or Google.For smaller companies or those who are very traditional, setting the bar this high might feel impossible.But it really starts with just one small step--thinking outside of your industry. What are other companies, startups, and apps doing really well? How can you leverage what they're doing and apply it to your own business?Based on what you see in the market, you can create a swipe file of popular digital capabilities that are already out there. But to do so you need to consistently monitor what other companies are doing--outside of your industry--to see if it would make sense to use in the context of your business.So, if you're ready to start building your own digital swipe file, here are ideas to start with:

1. Gamification

This digital capability is almost at buzz-worthy levels these days, but many companies woefully miss the mark when it comes to gamification.When done well, gamification techniques can be used to improve your company's digital experience. But the key is to avoid getting too gimmicky with it. Going too big and trying to create an entirely separate gaming platform for users is a mistake. My advice: start at a very basic level. If the user has to work too hard to play the game, then you're going to lose them.And keep in mind that Facebook, Reddit, and LinkedIn all use a form of gamification. They reward users who post content with attention from fellow users via upvotes, likes, and shares. It's that simple. This basic premise is what makes social media platforms so addicting--the more you use them, the more you can "win" the admiration of your peers.

2. Swipe right

A certain dating app turned swiping right into a good thing and swiping left into a, well, not so good thing. The simple motion of swiping right these days is synonymous with "yes," and there are millions of consumers out there who have already been trained on this capability.Imagine how you might apply the swiping right concept to your own app. You could potentially match consumers with products they might like or build powerful surveys that don't require the user to do anything more than a simple swipe.

3. Disappearing messages

One of the reasons Snapchat initially became so popular was because of its disappearing images. It gave an ephemeral quality to how users share moments in their lives and allowed others to take a quick peek.You could apply this digital capability to your own app in a way that serves your customer. Disappearing coupons? Flash sale announcements? There is no right or wrong answer--only possibilities to explore.

4. You might also like...

Amazon, Netflix, and Pandora may have the art of recommendation down to a science, but that doesn't mean you can't use it in your business, too.Applying an algorithm that makes a recommendation based on a user's past behavior could help your customers find articles they might like or self-help information they may need. You can even use the "You might also like..." premise to improve the user experience across all channels. Imagine if a customer walks into the physical store and a push notification tells them where to find a product they might like and gives them a discount code? It could be a powerful way to capture attention in the moment.There's no need to reinvent the wheel or come up with a completely original digital premise. Take a page out of the advertising world and build a swipe file of digital capabilities you might be able to leverage for your business. And keep in mind that it's important to look beyond your direct competitor--you never know where the next big idea will come from.

JD Power & Centric Digital Collaborate on Study Finding Utilities Most Lagging Industry in Digital Experience

COSTA MESA, Calif., March 21, 2018 /PRNewswire/ -- Utilities are among the lowest-performing industry groups when it comes to delivering distinct digital customer experiences, but some pioneers have found the secret to digital success, according to the J.D. Power 2018 Utility Digital Experience Study,SM released today.The inaugural study evaluates customer perceptions of the websites, mobile apps, social, chat, email and text functions of the 67 largest electric, natural gas and water utilities in the United States. It is the first-ever J.D. Power customer satisfaction study to incorporate biometric analyses (which tracks eye movements, facial emotions and voice tone), video verbatim interviews and detailed surveying to extract real-world customer perceptions. The study was conducted in collaboration with Centric Digital, a leader in measuring and navigating digital transformations. Centric Digital is contributing an expert assessment to the study, including industry benchmarking, digital experience analysis and cross-industry insights."Consumers have grown accustomed to receiving up-to-the-minute alerts on the status of at-home deliveries and being able to make checking account deposits with the cameras on their phones, but interacting with their utilities—whether to check usage, pay a bill or report an outage—often seems like a step back into the dark ages of technology," said Andrew Heath, Senior Director of the Utilities Practice at J.D. Power. "Utilities know this is a problem, and many have put in place initiatives to address it. But, until now, there hasn't been a reliable playbook for what works. By probing deeper than ever before into real-world customer interactions with their utility's digital platform, we've been able to spotlight best practices."Following are some of the study's key findings:

• Utilities among lowest-performing industries in digital: When benchmarked against other consumer-facing industries, utilities deliver the worst digital experiences. According to the Centric Digital DIMENSIONSTM Score, which evaluates digital proficiency, the utility industry scores 571 on a 1,000-point scale. The retail sector, by contrast, scores 771.
• Standouts are emerging: Though overall utility industry performance is weak, there is a wide range of performance, with some providers achieving digital customer satisfaction scores that are in line with top performers in other industries. The highest-ranked utility in the study, Alabama Power, has a J.D. Power customer satisfaction score of 879, which is a significant 40 points higher than industry average.
• More information in a streamlined format: Top-performing digital utility platforms, whether delivered via desktop or mobile, all display a great deal of information, including usage, account information and payment information, in a streamlined format. The ability to clearly and easily view usage information is the top driver of a positive website/app experience, associated with a 43-point improvement in overall customer satisfaction when delivered.
• Cross-channel communication remains a challenge: One component of the overall digital experience that utility brands struggle with the most is cross-channel communication. Utilities score 345 in the Centric Digital DIMENSIONSTM Score due to major gaps in social media, email, messaging and customer service capabilities.

Study RankingsAlabama Power ranks highest in overall satisfaction with a score of 879. SRP (872) ranks second and MidAmerican Energy (870) ranks third. The industry average is 839.The 2018 Utility Digital Experience Study is based on evaluations from 16,341 customers of the 67 largest electric, natural gas and water utilities. To be included in the study, utilities must serve 540,000 or more customers. The study was fielded in December 2017-January 2018.For more information about the Utility Digital Experience Study, visit http://www.jdpower.com/resource/us-utility-website-evaluation-study.See the online press release at http://www.jdpower.com/pr-id/2018032.J.D. Power is a global leader in consumer insights, advisory services and data and analytics. These capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. Established in 1968, J.D. Power is headquartered in Costa Mesa, Calif., and has offices serving North/South America, Asia Pacific and Europe. J.D. Power is a portfolio company of XIO Group, a global alternative investments and private equity firm headquartered in London, and is led by its four founders: Athene Li, Joseph Pacini, Murphy Qiao and Carsten Geyer.Centric Digital provides industry leading solutions to measure and navigate digital transformation. Powered by proprietary apps Dimensions™, Scenarios™ and Compass™, Centric Digital has benchmarked hundreds of brands, designed multi-year transformation strategies, unlocked and managed $2+b of investment roadmaps. Centric Digital ranked on Inc 5000 fastest growing companies in America list for the last 4 years. Centric Digital is headquartered in New York City, with offices in San Francisco, Chicago & Mendoza.Media Relations ContactsGeno Effler; Costa Mesa, Calif.; 714-621-6224; media.relations@jdpa.comJohn Roderick; St. James, N.Y.; 631-584-2200; john@jroderick.comAbout J.D. Power and Advertising/Promotional Rules www.jdpower.com/about-us/press-release-infoSOURCE J.D. Power

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