supply chain

One of the first developments in the supply chain was that of EDI (electronic data interchange). EDI  is a computer to computer based exchange that works with documents that can help reduce cost, increase processing speed, reduced errors and improve relationships with business partners. This is simply system can help is easily explained with the below diagrams. Diagram one shows the traditional old style way of ordering buying/ordering stock and the paper work process that it follows..

(Diagram 1)

Having an EdI system can allow documents to flow straight through to the appropriate application on the receiver’s computer (the Order Management System) and processing can begin immediately while eliminating the humon error that may occur in the manual process.

(Diagram 2) 

More recently retails giant Marks and Spencer’s have implemented a Microsoft.net infrastructure that collects transnational data from the tills during the day. This information was then sent to the central data warehouse within 10 minutes of the sale being processed. This helped improve both sales forecasting and reporting. M&S also combine MUWS (multi-user warehouse system) with the .net infrastructure to allowing stores to view real time stock availability.  This will mean over time that M&S will be able to visibly see what stock is on what trailer and will have the possibility to re-routs stock to busier stores to meet the demand and ensure customer satisfaction is met at all times in all stores.. 

How to get customer insights?

If only we had the ability to think like our customers even better still, to be able to realise who our target audience really are and what demographic they are in. The truth is we have so much readily available data about or customers or potential customers that we can gather valuable information and use it to target them with a particular product or service. Think about it, not a day passes where the majority of people haven’t spent time on the internet leaving a trail of information behind them as they venture in the online world. This data should be gathered analysed and used to the benefit of an organisation. There are so many analytic tools at your disposal that you can take advantage off. I will now list some of the most valuable analytic tools that as a marketer you could use.

You tube analytics: To find out who your real audience is, click on the ‘demographics tab’, here you’ll find information about the location and age of the people who watch your videos. Once you know who your audience is, you will be able to produce more personalised content that caters to their needs and increases conversions. You can also gain some information as to at what stage to people turn your videos off. In this instance you can have a pop up that directs them to your website ten seconds or so before the estimated time of departures.

Google trends: Using google trends you can see if your assumptions about the interests of your customers are correct. Take for example the rise in the makeup industry. Your marketing team could use Google analytics to see what makeup videos are trending. Google trends will also show you the most popular searched topics in your niche. Once you have decided on what areas or topics your customers wants to know more information on you can create and target them with the appropriate video or advertisement. Google trends can provide essential customer insights if used correctly. 

Google analytics: Google analytics is one of the most popular analytics tools on the market. It has the possibility to track the traffic of your website along with the performance of various web pages. One of the best benefits of Google analytics is the Goal funnel option. This is really important for those involved in E-commerce. Goal funnel provides all the URL links that the customer clicks through when making a purchase. This provides you with the information of how many people are actual going through the process. More importantly it will show you the stages that people are abandoning the purchase which can provide you with the data needed to improve the stages and steps needed to make a purchase.

Social Mention: Social mention is a free real time tool that allows you to monitor your performance on social media. It monitors and gathers all the social media mentions of your brand into a single stream which include hashtags. It gives an in-depth analysis of data and measures influence in four categories: sentiment, strength, passion, and reach.

The above mentioned are just some of the ways in which marketers can increase the information through gathered data to provide a better service for the customer, create new innovative ideas and to endure they are targeting their product or service at the correct demographic.

Digital for retention and new customers?

Organisations in today’s world focus heavily on attracting new customers as this forms the basis to grow and expand. Equally customer retention should have just as much time and energy focused on to ensure we maintain our loyal customers. Attracting new customers to your business can cost up to 7 times more than the cost of customer retention. The digital era in which we live in today can help with both of these aspects of growth. Take customer retention as an example. The term social media is fast becoming the gateway for organisation to continue to market their goods or services. However one simple solution of involving customers in in your social media can massively increase their loyalty. Soda Stream does a great job of regularly putting their fans in the limelight through their Facebook page and on their blog. Not only are they regularly engaging their fans with contests, they are making sure everyone knows who won, and creating a lot of buzz while they’re at it. This is also another form of marketing as these customers will spread the positive news to friends, family and most importantly on all social media platforms.

 Personalisation is another key aspect that most business over look, if we take the time to learn about our customers and present them with relevant products based on their preferences and buying purchases they will feel more valued and involved with the company. Ensuring repeat customers who buy online can have a simple purchase process take Amazons one click payments process as an example. Having a strong customer service presence online is more efficient then making customers contact and wait in line on call centre calls. These are just some of the simple but effective ways in which can ensure we retain our current customer base.

In order to attract new customers as a business you must be easily accesses, then of course you must offer value to the customer. If we look at Pinterest as an example of how using a unique sign up process was a strong form of customer acquisition.  Every step in the process, from requesting an invitation to the social signup, is designed to create a sense of belonging and wonderment, thereby building an emotional connection to the user. Having a demonstration video around the benefits of becoming one oy your consumers will increase conversations around your brand. Small offerings can increase someone to buy or use your product like an initial discount for first time buyers/ users. This can also be used to retain loyal customers. When potential customers are visiting your digital page for the first time we need to ensure it is now that we convert them as According to Infinite Conversions, “Over 80% of abandoning visitors never return.” Therefore, your focus should be on converting visitors the first time they visit.

Digital experience

Children's Hospital Los Angeles

In 2011 a leading paediatric Children’s Hospital located in down town Los Angeles(Childrens Hospital Los Angeles) moved into their new Children’s Hospital.  This was a 480,000 square foot with an estimated 317 beds. This new hospital cost $500 million and was to be a digitally enabled facility. While planning the new Hospital they decided to build digital density into the facility. Their primary goal was to “Improve patient outcomes” by trying to reduce the communication errors that contribute to 70% of patient harm. To solve this problem CHLA digitised their clinic by tying all patients’ records to an individual child’s patient record. Patients have a screening of their face done through facial recognition software. Once a patient is scheduled for any form of test everything is logged and tracked on their individual digital file. The IT team prioritised digital communications to make test results and diagnostic images the highest priority so that when the results are ready they are immediately available in the patient’s record, and nurses and doctors receive an alert. This digitisation as resulted in the common phrase “Are  the results back yet” you would be used to hearing from medial Television programmes almost derelict.  CHLA successfully achieved their goal of reducing communication errors that can harm patient. Additionally they also managed to save 66,000 nursing hours. If we look at a hospital that only wanted to reduce staff costs they would have cut nourishing hours or staff numbers. When in fact this may not be the only way to achieve a cost saving measure. 

Children's Hospital Los Angeles

Artificial Intelligence

For the past number of years we as customers have experienced numerous changes in how we buy things from clothes to flights. The biggest change in my opinion is how we go through the process of booking a flight.  It is fair to say that airline companies such as Ryanair and Aer Lingus have replaced staff with computers and intelligence systems. From the time you pick and book your flight to the time you board the plane the first point of contact with staff is while going through the boarding process at the gate. This for use speeds up the process and save costs for the organisations, however this process has replaced roles and people within the organisation. Combining our curious minds with our continuous drive to uncover and develop artificial intelligence we are continuing increase the risk of making our human species redundant in the work place.

Take even Mc Donald’s for example, They have introduced new touch screen pads in the majority of their stores which allows you to both order and pay for your food without as much as a smile from a staff member? Is this the world we have created with are increasing demands for new technologies?  Are we creating and encouraging a world where more time is spent interacting with robots during the retail sales process? All the above roles replaced by robots are fine in an ideal world where nothing goes wrong, however when we come into difficulties we demand to only want it resolved be a fellow human and demand to speak to one. We are only in the early stages of robots and A.I taking over. So what other industries and rolls run the risk of being made redundant?  

In my opinion I can see couriers in the long term being replaced by drones. So far I have only mentioned yet again basic roles and services being replaced. So let’s take a look at a more specialised role like accounting and book keeping. There is plenty of software packages available like QuickBooks, FreshBooks, and Microsoft Office that does the bookkeeping for you. This much more affordable than a person's salary, so it's no surprise this job has such a high probability in my opinion of being made redundant.

Considering we live in a world now where cars can park themselves with the touch of a button. The only roles in my opinion which are further from being replaced are the roles which require large amount of emotional intelligence. Human Resource management would fall under this bracket. 

Please click the below link for a video on A.I

Artificial Intelligence      

Spotify

what is Spotify

Spotify are a global on line music streaming provider from Sweden. Spotify provides the following services for its users, music streaming, podcasts, videos and more. Spotify was one of the first companies to offer free free music to subscribers. As we all know nothing in life is free and the price you paid was, after every song you would be subject to watching and listening to some advertising. However you could pay a monthly subscription and cut out the advertising. Spotify realised there was a gap in the market as they launched at a time where ITunes forced users to buy albums or songs.

Spotify was launched in Europe in 2008. Spotify’s aim was to help eliminate illegal streaming and downloading of music. Spotify operate by paying record labels and individual musicians their royalty fees in exchange to make their music widely available all over the world. They do this through offering various level of usage at a different costs. Spotify also allows its subscribers to create and share playlists which is a unique offering. They also have existing playlists created based on the humour and the mood you are in. They also offer a Discover weekly playlist which allows you to listen to new music. Spotify also have a feature available which allows fans to listen to the song writers behind their favourite pop songs. Spotify offers several options. You can listen to Spotify for free and you will be subject to listening to advertising after each song is played. You can use their premium offer which is only €9.99 a month and recently they offer student discount which would see the premium level fall to a mere €4.99. Alternatively you can also go for the Spotify family option which allows you to offer up to six people who reside in your house the premium option and the feel will only be €14.99 each month. Additionally Spotify collaborated with Facebook which provide a unique feature which allows friends to see what one another are listening to. In 2014 they launched a partnership with Uber which allowed premium users the chance to listen to Spotify as they travelled. Spotify can also detect the pace you are running at and will choose your next song combining your running tempo with a songs tempo.

All in all Spotify offered a unique experience like no other in the market that was up until Apple music was launched in 2005. Apple will undoubtedly challenge Spotify in the current market and may have more funding available in order to offer musicians and record labels more money in order to use Apple music. Apple currently have a greater music library available then Spotify but is Spotify’s unique additional playlist and family offerings that give them the edge over Apple music. Combine that with the fact that the interface of Spotify is easier to use over Apple music. This alone going forward will not last long and Spotify will need to provide its users with additional features to prevent them from jumping ship.

Airbnb and the canvas business model

1

Airbnb promo video

          Value Proposition: Considering we are in the era of smartphones and tablets taking over airbnb offer value where people can stay in bigger rooms at more affordable prices and all at the click of a button. Yet the Value proposition appeals to all levels of income. This increases their customer base.

2.       Customer Segments:  Airbnb offer a place to stay for all types of users. Holiday goers can stay in an affordable place in major cities. Yet it also appeals to the business traveller who is looking to save on company expenses.

3.       Channels: All Airbnb’s distribution channels are done through online services. Their web page browser and their smartphone and tablet application offer the same services. They have a strong presence on social media where the majority of their marketing and advertising is done. However word of mouth also contributes as both hosts and guest discuss their experience with friends and family as well as on social media.

4.       Customer Relationships: Airbnb is a global platform and is used all over the world. As a result their customer service is almost available 24/7. Airbnb offer promotional and loyalty programmes which cater and look after both new and existing customers.

5.       Revenue Streams: They have a simple but effective revenue stream where both the hosts and guest pay a fee. All transactions are also carried out online.

6.       Key Resources: Airbnb need to continuously gain new hosts in both new and existing countries and cities so they can offer a greater choice to the customer.

A) Continue to grow their customers profiles so they can make tailored offers of accommodation based on their needs.

B) As they are an online based business they need to keep up to date with the latest advancements in technology and need to have the best tech savvy professionals working for them.

C) Considering all payments are made online they need to make sure they have the most up to date systems in place to ensure a smooth and seamless process for its customers.

7.       Key Partners:  They need to have a portfolio of hosts and guests.

A)   Market and advertise the company on all sources including social media and print based advertisements. Liaise with tourism boards and newspapers.

B)   Photographers who can take the ideal picture of each accommodation they offer.

C)   Tech experts to keep their social media platforms up to date.

D)   Payment processing channels from banks to paypal.

8.       Key activities:  Recruiting more hosts to expand their portfolio of accommodation.

A)     Continue to advertise on line as this is where the majority of business is generated.

B)      Off-line based advertising such as posters bill boards newspapers etc.

C)      Retrieve search engine data from google and yahoo to spot potential new customers.

D)     If possible target some famous faces to endorse the brand as this will increase footfall to the website and possibly increase sales.

E)      Become a partner with the tourism board to have them advertise your company on official promotional videos and advertisements.

9) Cost Structure: Capital needed for promotional campaigns both online and off line. Considering all payments are 100% online the biggest chunk of money will be paid to the likes of MasterCard, Visa and pay pal for transaction fees. 

Digital Movement

The way in which business is conducted today couldn’t be any further from how it was led twenty years ago. The question is what has changed this? One of the biggest drivers in the change of how business is conducted is that of the digital movement. One example of digital movement is how smartphones and tablets are not only a necessity to the majority of people but they have also caused a shift in how business is done.

Everything from banking, retail shopping, booking flights and everything in between can now be done at the push of a button, from almost anywhere at any time. The movement of business applications has become an expectation from consumers. This expectation is growing and evolving at an alarming pace. Take AIB bank for example they have opened a digital hub in Dundrum town center know as the lab, this showcases all their latest digital developments and ideas and allows customers to experience them first hand. It is fair to say that AIB are leading the way the banking sector with their online banking application. However these changes have led to redundancies and the closer of some branches. The branches which have not closed have seen staff numbers drop. Gone are the days when a good relationship with your bank manager was important. Banks have lost their personal interaction which some people enjoy. Will this trend continue into other sectors such as retail shopping where we will see closer of shops or reduction with staff levels as the online craze continues to grow? Some organisations today now dedicated application software and online teams who not only develop new features for existing application but also monitor the customer feedback. This does not come without its difficulties as now business need to stay ahead of their competition by providing a digital service and experience like no other. Trying to maintain loyal customers is also proving to be more difficult as now customers hold the key for change and can now compare organisations and their services online. Websites such as trip advisor and Go compare are just two examples of websites for comparing companies offerings and ratings for same. Digital is now paving the way and fast becoming the primary route for new and existing business entering the market. Advanced technologies have paved the way for organisations to enter new markets. Take apple for example they have been able to enter the contact less payment market with the introduction of apple pay.  All the above have benefited the customer by making organisations become more competitive in the market resulting in cost saving measures for customers.

These are just some of the examples of how the digital movement is affecting the context of business. Another major effect is how robots can lead the way in automation which will allow us to focus on the areas in which automation cannot occur. There are many other ways that digitisation can affect how business is conducted. Please click the link below to discover if you are ready for change?

Are you ready for change?