Discovering knowledge and solving problems

Der Beitrag Why Business Leaders Need to Think like Scientists (1/2) erschien zuerst auf Argo Ventures.

Perhaps you are in a café, scrolling through your social media feeds before you head into work. Perhaps you are researching our company (and we welcome you!) during office hours. Maybe you’re even putting us all to shame, reading this article on the stationary bicycle at your gym.

No matter what the context, artificial intelligence (AI) has in some way brought you to this page. Whether Siri gave you directions to get here, or your LinkedIn account suggested this article, based on an algorithm of your specific interests. AI is responsible for getting you here, to this moment, now.

Office Goals

The modern office, especially, the modern start-up, has a great challenge to confront. The challenge: to utilise digital transformations to pioneer innovations in their businesses.

Although this challenge can be quite menacing at first, the prospects inspire hope for the future of workplace operations. AI presents a critical technological innovation, whose roots date back to more than a half-century, but whose modern implications are more ground-breaking than ever before.

For the new-age entrepreneur, at any step of their career, the acquisition of knowledge in this field can be a game-changer in their path. Let’s learn what exactly this powerful tool can do.

AI: What exactly is it?

According to HubSpot, AI “is a broad area of computer science that makes machines seem like they have human intelligence.

Is it really that simple?

Actually, yes.

Despite the extensive media portrayals of robots taking over the decision-making process for communities, artificial intelligence simply expresses the capacity of computers to be trained to interact with humans. Full stop.

The implications of this relatively simple field are excitingly complex, especially for your business. “Smart” computers can help increase the efficiency of company operations and help you focus on what’s really important. From spam filters to automated dictation of notes, AI can help you keep your eye on the prize.

Chatbots are an excellent example of established computer programs lifting the burden of repetitive business activities. While bots take care of fielding customer concerns, your employees can advance outreach methods and collect valuable data to improve the impact of your business.

Models such as these increase the value of any successful venture. However, it is important to remember that learning about these processes is as essential to your business as utilising this cutting-edge technology.

Lifelong Learning: A Love Letter

So: how do you invite artificial intelligence, and recognition of its abilities, into your life?

The first step is simple. As with any stable relationship, you must put forward an effort to get to know it.

Some ways you can engage your team through learning have already been explained in my colleague’s recent post. You can do even more:

• team workshops
• retreats
• available learning opportunities (my team presents new learning every Friday)
• classes

These simple options can increase the productivity of your team and get you on track to the next great breakthrough.

Recent years have sharpened the skill set of AI programming to a previously inconceivable, and somewhat spooky, level. Developers in Australia and the U.S., for example, designed a program called the “Nightmare Machine”, which first identifies fear and can then produce it.

First, they fed the machine visual material, which the team then responded to, to discern what imagery provokes the neural networks that are psychologically traced to fear. Finally, the program then created imagery based on this learning to simulate nightmares.

The takeaway of this program was to better understand the psychological partnership that is possible between humans and machines. Good work produces good results, and if you invest time to learn about how AI can improve your life, you can drive excellent advances in your field.

We have the power to shape digital transformations to make them work for us, not the other way around. If we open ourselves to the possibility of growth, we can make wonderful things happen.

Feeling inspired? Subscribe to our newsletter for news, tutorials, and exclusive interviews with the best and brightest of the business world.

Der Beitrag What AI Can Do For Your Company erschien zuerst auf Argo Ventures.

3. New business models

The digital age has brought about new ways to conduct business. The internet and ubiquitous smartphones have opened up new customer channels. They have also opened up completely new ways of doing business, with some companies being internet only.

These new business models can be extremely lucrative thanks to the scaling power of the internet. But for companies who aren’t able to harness its potential, it can mean extinction. Let’s take a look at the most popular new business models: Sharing economies, x-as-a-service, data-centered businesses, ecosystems and decentralized organizations.

Sharing economies

The description of ‘sharing economy’ isn’t completely accurate, but generally refers to the use of products or services without any ownership on the customers part. For instance, AirBnB allows locals to rent out their houses to travellers which helps experience the culture better when travelling. RelayRides is another example that allows people to rent out their cars to others.

These platforms have been powered by the matchmaking potential of the internet, combined with the accessibility and distribution of smartphones.

If you are in the hotel or car businesses, these new models pose a threat to your margins. In order to be competitive, new strategies such as delivering tailored customer experiences and aspirational branding are necessary.

X-as-a-service

Similar to the sharing economy, B2B providers are becoming vendors of technology which they lease out for a monthly fee.

This means that companies no longer have to invest money into building out technologies from scratch. Instead, they can just pick and choose what they want and assemble it like Lego.

Data

Companies are always looking for ways to make better decisions. When it comes to important decisions like whether to launch a new product, guessing is never a good idea.

As it stands, 85% of companies are trying to be more data driven, but only 37% are succeeding. Being data-driven is one of the best ways to make better decisions. This is why data has become one of the most valuable commodities in the digital age.

Some companies like Facebook have built their business model around the data they collect. The fact that they know everything about us is valuable to marketing leaders who want to hyper-target their products. Other companies like Crunchbase act as aggregates of data which they package and sell.

Ecosystems

In certain industries, there are opportunities for key players to own the whole ecosystem. This isn’t achieved through pure financial and political power like in the previous century. Instead, it’s more about familiarity of service and ease of accessibility.

An example of this is Amazon and what they did to the book publishing industry. Leveraging their success as a book retailer, they branched out into e-readers and even starting their own publishing arm.

Having this monopolistic level of power has given them leverage over publishing incumbents who were slow to adapt to this change.

Decentralization

The changing ways in which we think also plays a part in the development of digital business models. Take the blockchain for instance. The technology and concept behind it is impressive. But it is the idea of decentralized ownership and cutting out the middleman which gives it strong commercial potential. With growing distrust in government and big business around the world, the demand for more transparent and fairer business models is being met by the blockchain.

And investors are lining up to back these new models. As of May, $1.3 billion was invested in blockchain companies by Venture Capitalists. This doesn’t include the billions poured in by crowdfunding.

4. Cultural Landscape

We have already talked about how digital platforms such as social media have given the average person a voice. Often, customers will use these platforms to voice their support or frustration with a brand. But it’s not just about customer service. It’s also about corporate social responsibility.

Social platforms such as Twitter and Facebook have given people the ability to start social movements and vote with their dollar. For instance, there have been movements to boycott brands that are run by people who may have controversial beliefs. An example would be the conflict between religious business people and the LGBT community. Similarly, businesses who are politically aligned with controversial issues such as gun ownership or immigration are often in the firing line from both sides.

The key takeaway? Businesses in the digital age are no longer faceless entities.

There is increasing pressure for businesses to ‘take a stand’ on certain issues. Particularly that which is seen as human rights, of political nature, and environmental sustainability.

A current example of a company taking a political position can be seen through Nike’s appointment of Colin Kaepernick as the brand face of their slogan, ‘Just Do It.’ For those not in the know, Colin Kaepernick is a NFL player who startet the U.S. national anthem protests by keeling for the national anthem during an American football game in 2016. This was done to protest what he viewed as systematic oppression of different groups in the country, fuelled by the then inflamed media coverage of excessive police force.

The protest continues to divide the country. But Nike’s recent appointment of Kaepernick as the ambassador for one of their campaigns has sparked outrage on social media. Since the release of the campaign last week, people across the US can be seen burning their Nike sportswear in protest against the company. In their eyes, Kaepernick’s refusal to kneel for the anthem was a sign of disrespect. And Nike endorsing him puts the company in the category of the ‘other’, politically speaking.

As a business leader, navigating this cultural landscape can be difficult. Where do you draw the line between strong personal beliefs, being socially responsible and maximizing the return for shareholders? That’s something every leader will have to figure out as culture and politics become more polarized.

5. Holistic Leadership

But your greatest challenge in the digital age is becoming a multi-faceted leader.

As competition increases and technology continues to disrupt, only the best leaders will thrive and continue to exceed value to shareholders and customers.

How do entrepreneurs achieve this?

For a start, the idea of a sales focused or technical focused CEO has had it’s time. We’re moving to an era where business leaders need to be able to wear multiple hats and see through different perspectives. This means your perspective needs to cover sales, marketing, people, product, technology and service.

If you as a leader aren’t curious and diving into all functions of your business then you will miss out on opportunities for growth.

This is why I advocate for executive coaching and business networks simply because the stakes are high. The challenges we discussed in this series are just the tip of the iceberg but can still prove to be fatal. In the digital age, what worked 10 years ago, or even 5 years ago, may not work today. And although you may be in a comfortable position now, that can all change in the next few years.

The best course of action is to be prepared and tackle the challenges before they affect you.

Der Beitrag The Great Challenges of Entrepreneurship 2/2 erschien zuerst auf Argo Ventures.

Most people would come up with a list that looked like this:

• Competing in Olympic sports
• Battling a life-threatening disease
• Forgiving somebody who has done you a great wrong

To the benefit of entrepreneurial ego’s everywhere, I’d like to add one more to that list. Starting, scaling and managing a business is one of the most challenging things a human can do.

In many ways, successful entrepreneurs are like the Olympic athletes of the business world. A path that only a few dare to walk on, and even less survive.

And that’s a lot about what entrepreneurship is – surviving. Throughout all era’s, there have been tremendous challenges that business leaders had to face. Some of them fatal – there are countless case studies of failed ventures both large and small.

The challenges that entrepreneurs of the industrial era face are quite different from those in the digital age. Competition and disruption were more limited. Now, the knowledge explosion and democratization of access means there are threats coming from every angle.

Are you prepared?

Being blindsided by one of these threats could cost you your position in your market. Let’s cover all the bases so that you can identify your potential weak spots.

1. Competitive Pressures

You saw this one coming, so let’s get it out of the way.

The threat of somebody eating your lunch is one of the main fears that business leaders contend with. Naturally, competition in business has always existed. But due to digitization, things are a lot different – particularly so over the past 10 years.

There are two competitive pressures that are unique to the digital era:

• The Ursupers: Scrappy, disruptive upstarts – I’m not referring to the Mark Zuckerberg types either. It’s the renegades in your industry with domain expertise and something to prove that are deadly.
• Human Poaching: Shortage of technical talent – In marketing, there’s a saying we are all now part of media companies. It’s also true that we are all now part of technology companies.

The Usurpers

The culture has changed. Talented students coming out of prestigious universities no longer want to work in Finance or the Big 4 consultancies. In fact, they don’t even want a paycheck and a retirement package. The generations coming up are seeking greater meaning in the work they do – and for many, this means starting a company that could change the world. This cultural shift towards being your own boss, in combination with the democratization of both knowledge and access, is leading to a new breed of competitors:

They are smart and hyper-ambitious.

If the large conglomerate in your space is what scares you, you should take a look at the companies coming up behind. They are the true threat, even though it’s not easy to see in the present.

All it takes is one well-executed idea by an all-star team. That’s enough to turn your whole market upside down – as has been the case with many industries.

According to Accenture’s Disruptability Index, its estimated that as much as 63 percent of companies are experiencing disruption.

Truly, no industry or business is safe. No matter how successful they have been in the past.

Human Poaching

Why would somebody with an in-demand skill choose your company over the others? The way some companies conduct themselves, you would think that they have never asked themselves this question. Have you?

The traditional way that business leaders and hiring managers approach hiring is outdated. We no longer live in an era where companies are the only ones who ask ‘why should I hire you?’.

The question is now flipped, ‘why should I join you?’.

When it comes to digital skill sets, you are competing with every other company who has a stake in the digital world. Programming, IT and Design run across all industries and verticals, not just tech-focused companies.

Put your company toe to toe with the likes of Google, Facebook and trendy companies such as AirBnB. That’s who you are competing with for talent. You are competing intensely for those who can make your digital strategy come to life.

2. Customer Demands

Study how attitudes towards the customer have evolved over the decades and centuries. In the era of radio and television, it was all about influencing and changing people’s perspectives – both for good and bad.

A business culture evolved from a harsh, war-driven period – utilizing the concept of propaganda to tap into the human psyche and increase profit. Examples of this can be seen in the amplification of ideas around femininity in order to sell more products. You need to purchase this product to feel like a real woman, or so they were told.

Most recently, we have witnessed an era of more overt sales tactics. High-pressure salesmen cold calling prospects, spam email campaigns, and clickbait news titles. All in an effort to capture your attention and sell you something.

Now, we are entering an era of transparency and exceptional experience.

• Transparency– The internet has changed everything. There are two powerful effects that the internet has produced: the democratization of information and giving everybody a platform to speak. Both of these effects present challenges for business leaders. The former means that customers are well aware of the positioning your product has in the market before they even talk to a sales rep. The latter means that if you aren’t authentic and provide great service, everybody will know about it. True for both B2B and B2C companies.
• Exceptional experience– Not to be confused with adding value. This also links back into the competitive environment. If we are honest with ourselves, the chances are that a competitor may be doing the exact same thing we are. They may even be doing it better. In this case, everybody is providing value to the customer. But how many companies provide exceptional customer experiences? I don’t mean offering warranties or having helpful support teams. Go beyond that, make customers feel like they are doing something important by becoming a part of your brand. Be their strategic partners in business and educate, guide and teach them as opposed to just selling them products.

Personalization

In light of the need to offer exceptional experiences, there has been a significant shift occurring in recent years. In this new competitive environment, some companies are reaching into the cookie jar and changing the way they think about their customers. The paradigm has changed. No longer are customers seen as a singular, uniform entity. Instead, customers are being treated as the individuals that they are.

We are leaving the era of mass marketing, and entering the era of personalization. This can be seen in a few ways:

• Personalization startups  Mass produce a luxury item or create an artisan version of a commodity. There has been a boom in startups that are focused on the latter. They are taking products and ideas that are generic and making it relevant to individual customers. Take the rise in personalized children’s books for instance. Or the various nutrition startups like Habit that manage your diet according to your needs.
• Content marketing– With increased competition, it’s hard for customers to distinguish the value among businesses. Now, it’s becoming necessary to provide value to first in the form of content. This can be through solving problems, changing their way of thinking or simply entertaining them. Content is becoming key as it’s usually expected that there will be multiple touch points with a customer before they become a buyer. There is an emphasis towards building relationships as opposed to transactions. This is true even for products like Redbull, who deploy one of the most robust content strategies.
• Cookies, tracking, and data– As customers engage with a brand, businesses are able to collect data that can help tailor their service to them. For instance, Netflix and Spotify use algorithms to suggest content that you would like, based on your browsing history. Over time, they will be able to create a profile of what content you like best. This personalization ensures that you stay a loyal and happy customer.

Hidden Demands

Entrepreneurship is about finding what customers truly want.

If you ask a customer about what it is they want or need, they won’t be able to give you a straight answer. Naturally, if the problem is so obvious they would have likely already solved it.

This is why a key part of innovation involves uncovering the practices, problems, and psychology of the customer. It’s about discovering knowledge. We spoke about this in our article about why business leaders need to think like scientists.

But uncovering problems the customer faces doesn’t mean that they will automatically buy from you. The customer may be in denial that there is a legitimate problem. They may be happy with the status quo. They may realize there is a problem but aren’t convinced of the solution.

This is why educating your potential customers and becoming trusted partners is important. It links into the need for personalization and understanding the customer journey. They may not be ready now, but over time you have the ability to change how they think.

Confronting the challenges

Competitive pressures and customer demands are likely two challenges you already know about. Effectively navigating them is the real task. This is why we have set up coaching for entrepreneurs and business leaders so that you have the support to face these threats head-on.

But there are also many more besides what we discussed here. In the next part, we will cover the challenges of becoming new business models, cultural pressures and becoming a multi-faceted leader.

Der Beitrag The Great Challenges of Entrepreneurship 1/2 erschien zuerst auf Argo Ventures.