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Month: May 2018

4 Ways Companies Impede Their Analytics Efforts

Businesses in the race to become “data-driven” or “insights-driven” often face several disconnects between their vision of an initiative and their execution of it. Of course, everyone wants to be competitive, but there are several things that differentiate the leaders from the laggards. Part of it is weathering the growing pains that companies tend to experience, some of which are easier to change than others. These are some of the stumbling blocks.

Business objectives and analytics are not aligned

Analytics still takes place in pockets within the majority of organizations. The good news is that various functions are now able to operate more effectively and efficiently as a result of applying analytics. However, there is greater power in aligning efforts with the strategic goals of the business.

In a recent research note, Gartner stated, “Internally, the integrative, connected, real-time nature of digital business requires collaboration between historically independent organizational units. To make this collaboration happen, business and IT must work together on vision, strategy, roles and metrics. Everyone is going to have to change, and everyone is going to have to learn.”

All of that requires cultural adjustment, which can be the most difficult challenge of all.

There’s insight but no action

It’s one thing to get an insight and quite another to put that insight into action. To be effective, analytics need to be operationalized, which means weaving analytics into business processes so that insights can be turned into meaningful actions. Prescriptive analytics is part of it, but fundamentally, business processes need to be updated to include analytics. A point often missed is that decisions and actions are not ends in themselves. They, too, need to be analyzed to determine their effectiveness.

An EY presentation stresses the need to operationalize analytics. Specifically, it says, ” The key to operationalizing analytics is to appreciate the analytics value chain.”

Interestingly, when most of us think about “the analytics value chain” we think of data, analytics, insights, decisions and optimizing outcomes. While that’s the way work flows, EY says our thought process should be the reverse. Similarly, to optimize a process, one must understand what that process is supposed to achieve (e.g., thwart fraud, improve customer experience, reduce churn).

They’re not looking ahead

Less analytically mature companies haven’t moved beyond descriptive analytics yet. They’re still generating reports, albeit faster than they used to because IT and lines of business tend to agree that self-service reporting is better for everyone. Gartner says “the BI and analytics market is in the final stages of a multiyear shift from IT-lead, system-of-record reporting to business-led, self-service analytics. As a result, the modern business intelligence and analytics platform has emerged to meet new organizational requirements for accessibility, agility and deeper analytical insight.”

Still, organizations can only get so far with descriptive analytics. If they want to up their competitive game, they need to move to predictive and prescriptive analytics.

Poor data quality prevents accurate analytics

If you don’t have good data or a critical mass of the right data, your analytical outcomes are going to fall short. Just about any multichannel (and sometimes even single-channel) communication experience with a bank, a telephone company, a credit card company, or a vendor support organization will prove data quality is still a huge issue. Never mind the fact some of these companies are big brand companies who invest staggering amounts of money in technology, including data and analytics technologies.

In a typical telephone scenario, a bot asks the customer to enter an account number or a customer number. If the customer needs to be transferred to a live customer service representative (CSR), chances are the CSR will ask the customer to repeat the number because it doesn’t come up on their screen automatically. If the CSR can’t resolve the issue, then the call is usually transferred to a supervisor or different department. What was your name and number again? It’s a frustrating problem that’s all too common.

The underlying problem is that customer’s information is stored in different systems for different reasons such as sales, CRM and finance.

I spoke with someone recently who said a company he worked with had gone through nearly 20 acquisitions. Not surprisingly, data quality was a huge issue. The most difficult part was dealing with the limited fields in a legacy system. Because the system did not contain enough of the appropriate fields in which to enter data, users made up their own workarounds.

These are just a few of the challenges organizations face on their journey.

How AR/VR Analytics May Help Your Business

Alternative reality and virtual reality are gaining traction, and some of the early adopters are already trying to figure out what it means to their businesses. The use cases vary from industry to industry, but the idea is to leverage virtual assets (AR) or create a completely virtual environment (VR) that provide low-cost, yet effective means of accomplishing what is otherwise expensive and difficult in the real world.

The possibilities seem only limited by the imagination; however, adoption numbers underscore the early nature of the products and related analytics among businesses.  For example, a recent survey by IT trade association CompTIA shows that about 21% of the responding organizations had some kind of AR or VR initiative in place.

“Most organizations realize there’s some potential because they saw what happened with Pokémon Go last year, but it’s going to take some time to happen,” said Tim Herbert, senior VP of research and market Intelligence at CompTIA.

Right now, people are focused on the visualization aspects and what that means. Interest in analytics will come later as it becomes clear that what happens in an AR or VR environment needs to be monitored, analyzed and optimized. Right now, most are more focused on the technology aspect and the talent needed.

“VR analytics can empower organizations to better understand and connect with their audiences. It’s about knowing exactly how your audience interacted with your content and, on a psychological level, how emotionally salient they found it,” said Joshua Setzer, CEO of VR/AR solutions provider  Lucid Dream. How you look at it depends upon your own job function and the objectives behind your project. A marketer may want to [understand] which parts of a message resonates with an audience and which don’t. A trainer may wish to tease out the psychophysical signatures of learning to understand which elements of content are being imprinted in memory and which are more likely to be forgotten.”

Companies in different industries are exploring AR/VR technologies to see what impact they have on sales, marketing, HR, product development and more.

“If you think through some of those use cases, you can see how having some of the new streams of data would be valuable to an organization,” said Herbert.

Following are a few things your organization can start thinking about today.

Why Businesses Must Start Thinking About Voice Interfaces, Now

Voice interfaces are going to have an immense impact on human-to-machine interaction, eventually replacing keyboards, mice and touch. For one thing, voice interfaces can be much more efficient than computers, laptops, tablets and smartphones. More importantly, they provide an opportunity to develop closer relationships with customers based on a deeper understanding of those customers.

Despite the popularity of Alexa among consumers, one might assume that voice interfaces are aspirational at best for businesses, although a recent Capgemini conversational commerce study tells a different story. The findings indicate that 40% of the 5,000 consumers interviewed would use a voice assistant instead of a mobile app or website. In three years, the active users expect 18% of their total expenditures will take place via a voice assistant, which is a six-fold increase from today. The study also concluded that voice assistants can improve Net Promoter Scores by 19%. Interestingly, this was the first such study by Capgemini.

“Businesses really need to come to grips with voice channels because they will change the customer experience in ways that we haven’t seen since the rise of ecommerce,” Mark Taylor, chief experience officer, DCX Practice, Capgemini. “I think it’s going to [have a bigger impact] than ecommerce because it’s broader. We call it ‘conversational commerce,’ but it’s really voice-activated transactions.”

Voice interfaces need to mimic humans

The obvious problem with voice interfaces is their limited understanding of human speech, which isn’t an easy problem to solve. Their accuracy depends on understanding of the words spoken in context, including the emotions of the speaker.

“We’re reacting in a human way to very robotic experience and as that experience evolves, it will only increase our openness and willingness to experience that kind of interaction,” said Taylor. “Businesses have recognized that they’re going to need a branded presence in voice channels, so some businesses have done a ton of work to learn what that will be.”

For example, brands including Campbell’s Soup, Sephora and Taco Bell are trying to understand how consumers want to interact with them, what kind of tone they have as a brand and what to do with the data they’re collecting.

“Brands have spent billions of dollars over the years representing how they look to their audience,” said Taylor. “Now they’re going to have to represent how they sound. What is the voice of your brand? Is it a female or male voice, a young voice or an older voice? Does it have a humorous or dynamic style? There are lots of great questions that will need to be addressed.”

Don’t approach voice like web or mobile

Web and mobile experiences guide users down a path that is meant to translate human thought into something meaningful, but the experience is artificial. In web and mobile experiences, it’s common to search using keywords or step through a pre-programmed hierarchy. Brands win and lose market share based on the customer experience they provide. The same will be true for voice, but the difference is that voice will enable deeper customer relationships.

Interestingly, in the digital world, voice has lost its appeal. Businesses are replacing expensive call centers with bots. Meanwhile, younger generations are using smartphones for everything but traditional voice phone calls. Voice interfaces will change all of that that, albeit not in the way older generations might expect. In Europe, for example, millennials prefer to use a voice assistant in stores rather than talking to a person, Taylor said.

“What’s interesting here is the new types of use cases [because you can] interact with customers where they are,” said Ken Dodelin, VP of Conversational AI Products at Capital One.

Instead of surfing the web or navigating through a website, users can simply ask a question or issue a command.

“[Amazon’s] dash button was the early version a friction-free thing where someone can extend their finger and press a button to go from thought to action,” said Dodelin. “Alexa is a natural evolution of that.”

In banking, there is considerable friction between wanting money or credit and getting it. Capital One has enabled financial account access via voice on Alexa and Cortana platforms. It is also combining visual and voice access on Echo Show. The reasoning for the latter is because humans communicate information faster by speaking and consume information faster visually.

“[I]t usually boils down to what’s the problem you’re solving and how do you take friction out of things,” said Dodelin. “When I think about what it means for a business, it’s more about how can we [get] good customer and business outcomes from these new experiences.”

When Capital One first started with voice interfaces, customers would ask about the balance on their credit cards, but when they asked about the balance due, the system couldn’t handle it.

“Dialogue management is really important,” said Dodelin. “The other piece is who or what is speaking?”

Brand image is reflected in the characteristics of the voice interface. Capital One didn’t have character development experts, so it hired one from Pixar that now leads the conversational AI design work.

“Natural language processing technology has progressed so much that we can expect it to become an increasingly common channel for customer experience,” said Dodelin. “If they’re not doing it directly through a company’s proprietary voice interface, they’re doing it by proxy through Alexa, Google Home or Siri and soon through our automobiles.”

The move to voice interfaces is going to be a challenge for some brands and an opportunity for others. Now is the time for companies to experiment and if they’re successful, leap ahead of their competitors and perhaps even set a new standard for creating customer experiences.

Clearly, more works needs to be done on natural language processing, but already, some consumers have been tempted to thank Alexa, despite its early-stage capabilities, said Capgemini’s Taylor.

In short, voice interfaces are here and evolving rapidly. What will your brand do?