Your business may have operating hours but your IT infrastructure runs all-day and all-night! Does that mean your employees should too? Of course not! However, IT relies heavily on human resources: people and time. It is how resources are managed that will help keep your business moving forward.
In 2014, Gallup reported that 50% of full-time employees in the United States worked above the standard “40-Hour” workweek. The average number of hours worked was estimated at 47 hours per week. Some countries have laws setting terms for overtime pay, while others, like the U.S. leave it to the employer or Canada where it’s left to local jurisdiction.
For those in IT, it can be quite easy to surpass the numbers of the standard “40-Hour” work week. Help desk support, project implementations and being “on-call” are placed on top of day-to-day responsibilities for your team members. Depending on your employees’ skillsets and your need for resources, IT managers need to ensure the department isn’t being overworked and stressed.
Whether you lead an IT firm or work within a corporation, your team needs to provide support to clients, often fellow employees, with their technical needs and requirements. Marketing, sales, operations and even your cafeteria rely on IT. Regardless of the size of your company, big or small, technology is how we do business. For many, IT is the heart and connects employees to each other and their partners.
Some examples of how IT fits into one’s business:
1. A multi-national company has cross-border and cross-functional teams that require conference room technology to work through wireless presentations
2. The cafeteria staff has to submit orders to partners via web, phone and even fax.
3. A local coffee needs to install a WiFi network for customers to access for free
What are some ways to manage resources over a 24-hour period? Well, there’s no simple answer. Every business is different. However, here are some tips to consider in how to make the most of our your team and their time to cover a 24-hour day:
1. Create an organizational structure map, noting specialties of team members. If members are remote, include their location and time zone
2. Develop a resource calendar showing tasks and projects assigned and time availability
3. Set the right expectation with team members in pay (including overtime), flexibility, project timelines, etc. to ensure proper coverage when necessary
4. Communicate with clients, partners and fellow employees on how your team will work within them and provide productivity and management tools like a help desk ticketing system
Your IT works beyond when the office doors close for the day. Remember that an overworked team will not produce as much as a balanced, engaged one. Think about how you can make the most of your resources, while keeping employees motivated to work with and for you.
Does your team work across a 24-hour period? How are you managing it? Share your tips with us!
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Why IT Has the Hardest Job?
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Today’s work environment is entirely different from what it was several years ago. Communications technology has revolutionized the way companies work and interact. Several teams might work on a single project without even meeting each other in person. In fact, they might not even reside in the same state or country.
It’s not uncommon for employees from different branches of a company to work and interact with each other remotely. However, exchanging emails or communications constantly to make members of the team aware of any changes is not nearly as efficient as grouping together in a meeting room or huddle space and can get tedious fast. Thankfully, collaboration tools can make it easier.
What Are Collaboration Tools?
Collaboration tools allow your colleagues to view any changes and additions you’ve made to your project content. Most collaboration software is “live,” so if someone who has access to your document is online and viewing, they’ll be able to see the changes you make as you’re making them. Distance isn’t a factor as the changes are applied instantly. A person on your team might be on the other side of the planet and still be able to see those changes easily.
Collaboration Tools and Presentation Software
If several people are working on a presentation, sending details of every alteration anyone makes can lead to errors and misunderstandings across the board. Keeping everyone on the same page is important. When it comes to presentations, there are several options available to you:
• If you are accustomed to Microsoft’s PowerPoint, you can use PowerPoint in Dropbox. Collaboration is easy after you upload your presentation to the virtual drive.
• Google Slides are also an option with seamless integration with Google Drive, mobile apps, and compatibility with all kinds of operating systems and platforms.
• Apple’s Keynote is also a great alternative to PPT. If you’re accustomed to Keynote, you can easily use it to create presentations and store it in Apple’s cloud database.
How Does it Work for Different Departments?
Consider this scenario: You’re working on a project that involves your company’s graphic design team, web design team, marketing team, and editing team. You need to prepare a presentation that would showcase the scope of the project and include the timeline, and the strategies involved. While you are aware of your own work, you need input and content from other departments as well.
Each of them can contribute content related to their field and create a compelling presentation together. You can achieve this through cloud computing. Essentially, your presentation is stored on a virtual drive and you give access to the people working on it. You can make alterations, add content, communicate with others through the software, and add comments to the relevant sections.
Access Levels
Even if states or countries separate you and the other departments, you’ll be able to communicate and work on the presentation together in real time. You can also give individuals different levels of access. For example, if you give a group of people permission to edit, while others are just allowed to view.
The finalized presentation can be sealed and you won’t have to go through the trouble to emailing it to everyone. You just need to give them access.
Videoconferencing
Just because it’s impossible to physically meet with your team in a conference room or huddle space doesn’t mean that you can’t meet with them digitally. Thanks to videoconferencing, you can gather your entire team together on your conference room’s AV equipment. And depending on how elaborate your conference room technology is, you can use wireless projection to view them in HD, which is almost as good as meeting them in person.
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As more organizations implement tech-driven initiatives, Chief Information Officers have more items on their agendas than ever before. However, some projects are garnishing more attention than others. CIOs are prioritizing their agendas and focusing on the most valuable tech projects for their organizations. Which types of projects are making it to the top of CIO’s list of priorities?
Meeting Rooms
We spend an estimated 31 hours a month in unproductive meetings, according to a recent report by Atlassian. For executives, that number could reach 18 to 27 hours per week. Not only are some meetings considered unproductive, 47 percent of respondents in the study said that they were the biggest time-suck in the office, followed by Facebook.
Conducting meetings is a crucial part of running a business. They can help improve communication and increase productivity, if managed effectively. The problem is that meetings are often too long, and instead of using the time to work on projects, they are seen as time-fillers.
CEOs, CIOs, and other executives are tasked with finding a way to make meetings more secure and productive. There are several ways that companies can improve meetings in their workplace. For one, some are ditching the cables and other hardware for wireless presentation software, allowing them to simply plug in, cut time, and start presenting.
Secondly, many are adopting a “working meeting” model. They are using collaboration tools to work on projects together inside and outside of the meeting room. Others are spacing out long, formal meetings or replacing them altogether with short, quick 15 to 20 minute ones.
Cloud-Based Solutions
According to the 2015 Gartner CIO Agenda Report, cloud projects rank as one of the top three priorities for tech leaders this year. Although not at the top of the Gartner list, other reports suggest cloud projects are crucial. Companies are realizing the value that cloud-based software has in their business. Cloud computing is cutting infrastructure costs and making it easier for employees to collaborate on work from anywhere.
One survey even claimed that by 2020, 62 percent of organizations will be running their operations completely through the cloud. CIOs are looking for more ways to implement cloud-based solutions effectively and securely.
Security
Security is continuously one of the top priorities for companies. With more demand for new technology in the workplace, leaders are faced with securing all these devices. Furthermore, the number of cyber attacks is increasing. Last year was even deemed the “year of data breaches,” with over 40 percent of companies reporting a breach.
CIOs are faced with embracing innovation while balancing it with data security, making it a top challenge for leaders in every industry.
Data and Analytics
In the Gartner report, business intelligence (BI) and analytics were ranked as the top CIO priority, with 50 percent of respondents naming it. Today, IT leaders are more involved with shaping both the employee and customer experience. Companies are increasingly relying on data to help them make informed, strategic decisions, and they are looking to tech leaders to help them do it.
Mobile Devices
The rise of mobile devices in the workplace is incredible. Companies are implementing wearable device programs, Bring-Your-Own-Device policies, and other mobile-inspired initiatives. As the workforce grows more mobile, and consumers demand more flexibility and personalization, tech leaders are expected to help create this mobile-friendly environment. Incorporating mobile solutions in business processes, securing them, and promoting innovative ways that they can improve performance, is becoming part of the job for some IT executives.
As technology use continues to boom in business, it seems like CIOs have even more items to tack onto their agendas. Companies are staying focused on tech projects that will have the most impact and improve their performance. Projects that involve data and analytics, meeting rooms, cloud-based solutions, security, and mobile devices will be at the top of those lists.
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There are rumors floating around that the software giant Google might scrap their 80/20 rule. The policy allowed Google employees 20% of their work time to be clear of all responsibilities to encourage side projects and innovation. This policy was later followed by other companies as well.
It was widely acknowledged that the rule promoted innovation and creativity across the board. Now it seems like Google doesn’t consider it an effective policy for them, but does that really mean it isn’t an effective policy for you?
What is the 80/20 Rule?
Way back in 1906, an Italian economist by the name of Vilfredo Pareto, noticed that 80% of the land in Italy was owned by 20% of the population. He developed this by observing that 20% of the peapods on his property yielded 80% of the peas.
Later on, a management consultant Joseph Juran noticed that this rule applied to other concepts too, and called it the Pareto principle. Accordingly, it can be applied to company management as well. In essence, according to this principle you get 80% of results from 20% of your effort.
In the software development world, this principle takes on a different form. According to research and observations, 80% of the results and improvements in the program come from alterations in 20% of the code. According to Microsoft, 20% of all detected bugs cause 80% of the problems.
How Can a CIO Take Advantage of This?
Whether its problem solving, or development, this rule seems to apply. Needlessly to say, it applies to time management as well. Google and other big companies might be forced to shelve the policy because not all side-projects and innovations see the light of day. In fact, majority of them don’t. This can discourage the employees.
In smaller companies, however, this can give employees the time and resources need for vague ideas to come to fruition. Small businesses have a limited number of employees who might come up with ideas at different points of time. It can be a new app, or a new program, a better solution to a problem, or something that would increase productivity. It can contribute towards sustained growth and ensure that your company always has fresh new ideas to keep you ahead of the competition.
Maintaining Productivity while Encouraging Innovation
Some might argue that the 80/20 rule might decrease productivity. With employees dedicating less time to their core projects and important work, the entire progress of your company might take a hit. You might start producing results at a slower pace and your competition might race on ahead.
Some of these concerns are valid. However, most CIOs manage to find the right balance. Software development and the IT industry require constant innovation but it can only happen when the mind in uncluttered and has room to let creativity flow.
When you hire the best minds in the industry because of their skill and innovativeness, you need to give them room to develop. The 80/20 rule does just that. As far as time management is concerned, you get quality in exchange of a marginal compromise in pace. It’s a worthwhile trade-off in the eyes of many.
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Years ago, business technology was more of an amenity–it was nice to have, but wasn’t always critical for companies to meet their bottom line. Today, it’s practically a necessity. It’s hard to imagine a company in any industry operating without using some form of it.
We have entered the digital age, and it has changed how we work, how we interact with each other, and so much more. For example, businesses are relying on collaboration tools to communicate work on projects and tasks from anywhere in the world. Organizations are increasing productivity, employee engagement, and worker efficiency by implementing tech-driven applications and programs. Company executives are using wireless presentation software that makes setting up cables and hardware a thing of the past.
There are tons of ways that technology could be implemented to improve existing processes, and its place in the business world is becoming increasingly crucial.
According to a recent report from CompTIA, IT is becoming an essential part of the job, for companies across many industries. In the report, close to one-quarter of businesses worldwide plan to increase their IT spending by 10 percent or more in the next year.
The increased spending for IT solutions and initiatives reflects a shift. The growing importance and use of technology is blurring the lines between tech companies and other industries. With this shift, some are saying every company is becoming a tech-focused company. Looking at how technology is being used in industries that may have never been associated with IT ten or even five years ago, it could be an accurate statement.
Healthcare
Patients with chronic conditions can now closely and easily monitor their condition with the help of a wearable device. Physicians can communicate with patients in real-time, view their health metrics, and make more informed treatment decisions through mobile devices. Technology is making it easier for physicians to collaborate and share medical expertise on tough conditions. Instead of waiting for a costly doctor’s appointment or going to the ER for routine issues, some patients are using telemedicine solutions to receive care remotely.
All of these solutions and more have been made possible by the advancement of technology in the healthcare industry. Before, healthcare systems’ security concerns prevented widespread adoption. Although security is still a major concern for the industry, the value that technology has in the industry is starting to overshadow the risk. One report states that investment in healthcare IT is expected to grow from $13.2 billion in 2013 to $14.6 billion by 2018.
Manufacturing
Robotics, wearable devices, 3D printing, and other technologies have transformed the manufacturing industry. Some are even concerned that the advanced technology could replace jobs with machines. But, machines were already being used in factories decades ago. Now, the industry is shifting their focus towards making these technologies smarter and helping employees increase productivity. According to a PwC study, the top IT priorities for manufacturing CEOs are mobility, cybersecurity, and data mining and analysis. Manufacturers will likely agree that technology has become critical to their bottom line. Many are even devoting more resources to improving IT to avoid downtime and other complex IT issues that surface.
Retail
The rising popularity of online shopping caused retailers to revamp their business models and join the digital revolution. Now, they are leading other industries in ways to use IT effectively. They are blurring the lines between digital shopping platforms and brick-and-mortar stores. Retailers are learning more about their consumers than ever before and personalizing shopping experiences with help from big data, mobile devices, and other technology. With global IT spending forecasts projected to surpass $190 billion, the retail and tech industries will continue to overlap.
But, is every company becoming tech-focused? The latest reports and technology success stories suggest that IT is taking over dozens of industry verticals. However, businesses’ main priorities will still be on what makes their services and offerings unique. Technology is simply the tool that is helping them connect with their customers, increase employee engagement and efficiency, and improve overall business performance.
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Social media is a powerful communication tool to share information and build relationships, as individuals and brands. It can also be a significant distraction in the workplace, where people use social media to attend to personal matters rather than focus on work responsibilities. Despite this possibility, companies are now considering how to turn social media into a valuable work resource.
Salary.com’s 2014 Wasting Time at Work survey revealed that 4% of total work time (online and offline) wasted was on social media. Looking at online activities, employees spent 23% of their online time on Facebook, 1% on Pinterest and 1% on Twitter. This may pose a challenge to business productivity.
Enterprise social media is on the rise, as organizations seek means to improve internal communications across departments. Better communication translates into higher levels of employee engagement, motivation and performance. The opportunity to utilize an technology at work that people use everyday to connect with their loved ones could be what boosts collaboration in the office and breaks down barriers across departments.
Microsoft created a Whitepaper called The Rise of Enterprise Social Networks, using various survey data reported some interesting statistics on employee engagement and the impact of social networks on business:
- 73% of employees are disengaged (Isaac Getz/ ESCP Europe School of Business)
- Employees are 4X more likely to be engaged at companies with enterprise social networks (PulsePoint Group/Economist Intelligence Unit)
- 60% of employees believe that social media promotes creativity and innovation (Microsoft)
- 61% of employees believe that enterprise social media improves communication and collaboration (Microsoft)
These statistics are eye opening, yet somewhat troubling. What is happening in the office that makes so many workers not interested in their employer? Certainly, company culture plays a significant role. If leadership is too rigid and fragmented, then employees will shut down. If leadership is interested in their employees’ level of satisfaction, then they need to make them feel a part of the business and be active in it.
Social media has truly changed the way many of us conduct business from sales to IT. Telecommunication firms, like Verizon and Optimum, have turned to tools like Twitter for help desk support. These businesses are becoming models for how IT can work within the corporate intranet and have begun to spark interest in tools like IT ticketing systems. We’ve seen project management go this route too, using tools like Slack, Trello and Basecamp as a means to collaborate and communicate.
Those individual tools work great, but often those are limited in transparency. If the intent is to break down silos, enterprise social media tools like Yammer and SocialCast are connecting people to interact beyond assigned projects. They are allowing employees to get to know each other by learning and sharing. Companies are creating roles for internal community management and social media management to encourage communication, idea exchange and collaboration.
While enterprise social media can be a wonderful thing, it really comes down to how the company supports it. Here are some things to consider when deciding to implement an enterprise social network at your company:
- Company Policy: Leadership should have internal and external communication policies in place. If not, it’s time to draft one! Your company should provide guidelines on the types of information and interactions that should take place on the network, noting what will be permitted and what will be moderated. Your policy should set structure without being a barrier.
- Human Resources: To make enterprise social media work for your business, you will need to build a team to support and manage it. Community and social media managers should be empowered to encourage engagement and collaboration by setting examples, moderating activity and supporting employee usage.
- IT Infrastructure: When implementing new technology, your current systems need to be evaluated to support it. You also need to have a team that is knowledgeable on how these networks function. If you have a unified communication system in place, the enterprise social network should be a part of it and not a standalone communication tool. It needs to be accessible, yet secure.
- Company Culture: Not only will leadership need to buy into the idea of an enterprise social network, your employees will too. Communication is key in any sort of change, big or small. Therefore, there needs to be interest and excitement built by demonstrating the operations and the benefits to business. Once you have adoption, you may begin to see a change in your company’s culture to promote a sharing environment.
Will enterprise social media work for your business? Simply having a network isn’t enough. You as a leader need to be a part of it. Your employees will let you know by how engaged and motivated they are. Social media is only as powerful as those using it. What do you think? Should users use social media for work collaboration?
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Technology is all around us. From tablets to smartphones to interactive displays to wireless projection, we seem to be constantly plugged in. But wearable devices are taking our relationship with technology even further. Wearable tech includes a broad range of electronics such as smartwatches, fitness trackers, smart clothing, glasses, accessories, and even implanted chips. Each of these “smart’ electronic devices is worn on the body of users for convenience, data accuracy, and aesthetics.
There are few who haven’t heard of or seen someone wearing one of these devices. In fact, over 33 million devices have been sold worldwide this year, according to a recent Business Insider report. In the U.S., 1 in 5 people own a wearable and 1 in 10 use it on a daily basis. The market for wearables is only expected to grow, with forecasts predicting that 148 million units will be sold in 2019.
The market for wearable tech has been slowly building up for years. Until recently, it wasn’t likely that the devices would enter the mainstream. Before, many of these devices were considered solely for personal and fitness use. However, their capabilities are much more sophisticated now than they were a few years ago. Now, they can do everything a smartphone can do and more. They can monitor sleep patterns, measure worker productivity, make phone calls, pay for purchases, track fitness, etc. With the release of Apple’s smartwatch, more consumers are interested in joining the tech-wearing culture.
Wearable Tech in the Workplace
Organizations are also realizing the potential role that they could play in the workplace, and many have or are considering wearable device programs. Studies suggest that a significant portion of the workforce is open to using them, if it helps them complete their job duties or improves work processes.
In one PricewaterhouseCoopers study, 70 percent of employees said, as part of a wellness program, they would use employer-provided wearable devices in exchange for insurance premium discounts. Another study by Cornerstone OnDemand reported that 80 percent of employees would use wearables for health and wellness programs. An even larger percentage would if they earned perks and discounts for using them.
So far, several businesses have reported promising results when using these technologies, especially for engagement and employee wellness programs. A growing number of companies are implementing wellness programs with the help of wearables. For instance, the oil company BP gave around 25,000 employees FitBits to monitor their health and fitness. Employees that reached a certain number of steps, received benefits on insurance premiums and other perks. Wearables can increase the effectiveness of these wellness programs, which could save organizations up to $264 per year, per employee.
When employees are happy, they are 12 percent more productive. According to a study from Goldsmith University, organizations that use wearables can increase employee productivity by 8.5 percent and job happiness by 3.5 percent. Grocery chain, Tesco, has started giving employees in their warehouses smart armbands that monitor worker productivity. The bands check shipments and send data like task completion time to managers. They can also detect worker fatigue to prevent work-related accidents.
There are dozens of possible benefits for using wearables in the workplace and it’s likely more companies will implement them. However, before rushing to order some wearables for the office, companies should address some key considerations.
Employee Privacy
One of the top reasons why individuals are hesitant to embrace a wearable world is data privacy. According to a PwC survey, 82 percent of people worry wearables would invade their privacy. Some countries are even considering regulations for how organizations use them in the workplace. For instance, the U.S. Equal Employment Opportunity Commission (EEOC) agency proposed limitations that if passed would restrict what types of data that companies can collect from employees using wearables and how they can use that information.
Companies need to set a distinguished line between ethical and unethical data usage. They should communicate with employees regarding the types of data that will be collected, and explain how that information will be used to help improve their work processes and satisfaction. Especially for health metrics, companies should have a data usage policy that they send to workers to review and approve before moving forward.
Many companies that have implemented wearable technology in the workplace have done so on an opt-in basis, making using the device optional. Some, like Tesco, may choose only to use the device while at work. To ensure that they balance employee privacy with improving working conditions, companies and their employees should establish guidelines for how and when the devices are to be used.
Data Security
Security is another primary reason individuals and organizations may be hesitant to adopt a wearable-friendly workplace. According to the PwC survey, 86 percent believe wearable devices could make them more vulnerable to data breaches.
Wearables were not originally designed for the workplace. The early versions were intended mainly for personal fitness and health monitoring. Now that many organizations are envisioning how wearables in the workplace could assist with initiatives like increased worker productivity and engagement, IT leaders are faced with how to secure these devices.
Wearables, like mobile devices, are more likely to be stolen or lost than a company desktop. Unlike other mobile devices though, it may be unclear if critical company data can be remotely wiped from them. Before introducing them to the office, organizations should develop a wearable device management policy that enables them to protect data from falling into the wrong hands.
User Engagement
Many businesses struggle with employee engagement. In fact, an estimated 87 percent of employees are disengaged. Disengaged employees often cause organizations to lose revenue, increase turnover rates, and negatively affect the work environment.
Technology is often used to assist in employee engagement initiatives. Wearables are one of the latest tech tools that are being introduced into the workplace as part of those programs. Oftentimes, companies see huge success when combining engagement with technology. However, where companies make a fatal error is thinking that the technology is the simple solution.
A wearable is just another tool. If companies don’t give users a value for using it, then they most likely won’t. Without sufficient reasons, they will eventually lose interest and stop using it. A study from Endeavour Partners reported that one-third of those that bought a wearable stopped using it after six months.
The study concluded that users found the devices valuable when they used them. The trick was getting them to continue usage. How do organizations keep users interested even after the honeymoon period?
There are some common themes that can be found in companies that use wearables effectively. For one, they give employees incentives like rewards and insurance discounts for interacting with the technology. Secondly, they don’t just present data to users, they incite actions. Lastly, they have specific goals.
Goals are perhaps the most important item a company should address in order for a wearable technology program to be optimally effective. For example, Tesco initiated its program with a clear, defined set of goals in mind. One of those was to increase the productivity of warehouse workers. By making the device part of the process and tracking completion time, it improved overall efficiency.
When wearable devices are used ethically and with proper security measures, they have the potential to empower employees, improve procedures, and enhance the work environment. However, organizations need to first assess how these devices will improve their business processes before jumping headfirst into the wearable tech bandwagon. Are you implementing wearable technology in your workplace yet? If so, how are you implementing it?
Additional Reading
Conference Room Technology: 5 Investments You Should Make
Conference Room Cable Management Checklist
Conference Room Design: 10 Examples Worth Studying
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Your meeting room leaves a large carbon footprint, and not just because large groups of people drive and occasionally fly to get to them. The way you use your conference room technology — in particular your audio visual setup — can also have an impact on your energy consumption.
Here are four ways to make your meeting room greener using technology:
1. Upgrade Your Tech
Start by making sure that your meeting room has energy efficient devices, AV equipment, and fixtures. Use LED lights and properly insulated windows. Make sure that it’s easily accessible to most of your employees. For example, if your meeting room is on one floor and the majority of your employees are on another, they’ll use elevators to move between floors, leading to more energy consumed. Plan the physical location of your rooms carefully. Perhaps you can have large windows that let in natural light, instead of relying on artificial ones for your meetings.
2. Go Wireless
Without cables and wires, you’re already consuming less energy. By using a wireless projection system and other wireless energy-star rated devices, you don’t waste time connecting devices to the audio visual setup and not too much energy is consumed during the meeting either.
This also ensures that you don’t need to have a dedicated set of hardware for your meeting rooms. By using wireless technology, you can easily utilize your devices in different rooms. For example, you don’t need two different sets of telecommunications equipment, devices, and presentation equipment for two different meeting rooms if you can make do with one.
3. Go Paperless (i.e. Digital)
Paper brochures, meeting reading material, nametags, etc, only add to the carbon footprint. If you’re going wireless, you can easily go paperless. All you need to do is have the right presentation software and a way to connect to all of the individual devices of people attending the meeting.
You can also send all reading materials to your audience well in advance so that they can read it on their wireless devices. Paperless meetings are becoming increasingly common. You don’t need to print several copies of the literature, wasting paper, and ink. This cuts cost across the board.
4. Connect Remotely
One way to reduce the environmental impact of your meeting room is to connect with people remotely. Instead of forcing people from other states or countries to fly in for the meeting, connect with your team members with remote presentation. With the right communication and productivity tools, you can share your presentation with anyone, anywhere. All you need to do is give them the right access.
If you set up your meeting with video-conferencing tools, you can give remote audiences live, interactive access to your presentation. This significantly reduces the environmental impact of your meetings.
A trend that starts with your meeting room’s audio visual setup can spread throughout your company. Eventually, you’ll start becoming environmentally responsible in your day-to-day life. It’s vital to start somewhere, no matter how small you think your contribution would be.
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It seems like almost anything is possible with the help of technology today. We can pay with a smartphone, check-in to hotels with a mobile device, or track exercising, eating, and sleeping habits with a wearable.
Businesses have also taken note of the digital revolution. Disruptive technologies like cloud computing, the Internet of things, wireless presentation, mobile devices, social media, wearables, and others have caused businesses to shift strategies. In fact, those that don’t go digital, will likely get left behind. For instance, 52 percent of traffic to retail websites comes from tablets or smartphones. Even in developing countries, one out of three people are online.
Many are embracing technology through digital leadership. There are many, varying definitions of digital leadership. A concise definition is that it is when organizations or individuals drive innovation and growth with the help of digital tools. The part where some organizations do it wrong is that they think it is all about technology. The tools are important, but it is how they are used that produces real results.
One study by MIT found that companies that are mastering digital leadership are profiting from it. According to the study, they generate about 9 percent more revenue and are 26 percent more profitable than their competitors. Some companies have become all-stars at not only mastering digital leadership, but using it to generate revenue.
Burberry
Take the icon brand burberry for an example. About a decade ago, the Britain-based luxury brand decided it needed a major transformation in order to remain competitive. Former Chief Executive Officer, Angela Ahrendts, and Chief Technology Officer, John Douglas, collaborated to develop and implement a digital strategy. The new strategy aimed to converge online and in-person retail experiences to create more convenient and personalized experiences for customers.
They have designed their flagship store in London to reflect the layout of their website. There are over 500 screens and 100 speakers in the store. When certain items, equipped with RFID tags, enter various locations throughout the building, they trigger video related to them to play on these screens. One of their many digital initiatives is called, “Customer 360”. With customer permission, the store tracks what an individual has tried on and purchased in the past. Then, they use previous shopping history to help customers the next time that they visit the store.
The transformation was a major success. Its revenue rose eight percent, from £461 million to £2.33 billion. Plus, the brand has inspired many other retailers to follow in their footsteps. Now, brands like Ray-Ban, Victoria’s Secret, Nordstrom and more are focusing on developing the digital space.
Key takeaway: Personalization is key to connecting with customers and increasing sales. One reports states that 86% of consumers say that personalization has influenced their buying decisions. One in five retailers are implementing a personalized digital strategy, and 74 percent of those that have implemented one have increased sales as a result.
Starbucks
The coffee giant has mastered the art of customer engagement. Their mobile app is the most used digital payment app in the United States, according to one Business Insider report. The report claims that about 5 million Starbucks transactions per week are conducted through it. Why has the mobile platform been such a success?
For one, mobile is convenient for much of their customer base. However, that is not the main reason. The primary reason for its success is that the company incentivizes user engagement by rewarding individuals each time that they use the app. It tracks how many times individuals use the app and lets them collect points, in the form of digital stars. Once customers have at least five stars, they can cash them in for a free refill or discounts. Accumulate over 12 stars, and you can get a free drink.
From a company perspective, the loyalty program is enhancing the customer experience and increasing sales. But, it also providing a platform, on which they can track customer data and purchasing behaviors better and send marketing content.
Key Takeaway: Mobile is crucial. Mobile usage has grown astronomically in the past few years, even overtaking desktop usage. According to ComScore, tablet usage has increased 1,721 percent and smartphone usage has increased 394 percent since 2010. Over half of the traffic to ecommerce sites originates from a mobile device.
It is common to see people surfing the Internet on their smartphone or tablet. In the workplace, mobile devices are becoming the norm. Many companies are cutting costs and increasing productivity by using mobile apps for employee engagement.
When it comes to engaging customers, many organizations find that mobile is the key. Today, having a digital presence isn’t just about being online or having a website. It’s about being where your customers are–on mobile devices.
Other businesses can look to these digital leadership examples to inspire their own initiatives. There are common themes that appear in companies that do it successfully. How are you using digital to help increase revenue in your company?