How Would You Like to Pay For That? Let the Customer Decide!

baroquon_Add_MoneyA couple of weeks ago, I had the opportunity to present on the topic of key trends in payments and commerce at Sage Summit 2014, Sage North America’s annual customer and partner event. Since getting paid is a top priority for all businesses, the topic garnered quite a bit of interest from small and medium business attendees.

So, I thought I’d share presentation highlights in this post, which discusses the sea change underway when it comes to how people want to shop and transact business, and why it is driving the need for businesses to reframe how they think about payments.

View the presentation above to learn about:

  • Key trends in payments and commerce, including ecommerce, mobile commerce, social shopping, omnicommerce and new types of forms of payments and currencies.
  • What this means for you as an SMB decision maker, and why flexibility and integrating payments with financials and other business systems will become critically important.
  • What you need to think about and plan for in this area, and why taking a more strategic view of payments and help you attract more customers and grow revenues.

And please let me know what you think about this topic! What other trends are you seeing, and how are you thinking about them in terms of your business?

What Is Workforce Science, and How Can It Help Your Business?

 

Smarter workforceEngaged, motivated employees can be an organization’s greatest asset. When employees are fully involved in, committed to, and passionate about their work, productivity rises, and more employees are likely to become brand advocates who can help you grow the business.

But many factors come into play when it comes to developing a more engaged workforce. While talent management tools are important to helping you attract, energize and retain the best employees, it’s only part of the picture.

In the last post in this three-part series, sponsored by IBM Smarter Workforce, I look at how companies are using applicant tracking systems (ATS) and assessment solutions to better address these issues, and new developments in this area that promise to provide further enhancements.

Why Should Companies Care About Workforce Science?

Intuitively, we all know that employees can make or break a company. When employees are productive and dedicated, they can propel business growth. Conversely, disgruntled or even apathetic employees can grind business growth to a halt.

Research confirms this intuition is spot on. IBM has found a strong correlation between employee engagement at the business unit level and key performance indicators, including customer metrics such as higher profitability, productivity, and quality, as well as lower employee turnover, absenteeism, theft and safety incidents.

But how much do most businesses really know about their employees? While many organizations are going to great lengths to understand and analyze customer and prospect expectations, most don’t really know much about what makes their employees tick. For instance, how does a person prefer to learn? What are their talents? How much do they care about their jobs?

The truth is that most companies still use subjective criteria to make many decisions in this area. For instance:

  • Only 56% of companies use an assessment as part of the hiring process. (Aberdeen)
  • 77% of HR professionals worldwide do not know how its workforce potential is affecting the company’s bottom line1 and less than half of organizations surveyed use objective talent data to drive business decisions.(SHL)
  • 86 percent of companies say they have no analytics capabilities in the HR function. Moreover, 67 percent rate themselves as “weak” at using HR data to predict workforce performance and improvement.(Bersin by Deloitte)

When you consider that businesses and their employees basically share a two-way profit relationship, it’s hard to understand why companies have been so slow to focus on this problem.

How Workforce Science Improves Talent ROI

talent lifeccyleWorkforce science helps businesses solve for this by combing behavioral science with normative data, analytics, consulting, and processes to determine what it takes to build an engaged workforce, and create the “systems of engagement” to execute on it.

Particularly as the recession wanes and the economy picks up, more companies are starting to get interested in improving their effectiveness through workforce science. With the competition for top talent intensifying, organizations are looking to use the predictive powers of workforce science to help ensure that their investments will pay off throughout the talent management life cycle.

For instance:

  • Predictive hiring. By looking for patterns across organizational, unit, HR, and external data, companies can hire more top performers by identifying the talents and skills that are critical to high performance in different areas, and creating a process to hire candidates that most closely align with these characteristics. In addition, analytics are also used to determine what characteristics are a better cultural fit with the company, so you can more readily identify candidates who will fit, be more productive, and who are more likely to stay with the company for a longer time period.
  • Predictive workforce readiness.To close talent gaps today, and develop the talent you need for tomorrow, you need to be able to accurately identify the talent you have, and take steps to fill the gaps. This starts with mapping talent requirements to key strategic objectives, identifying linkages between organizational roles and key competencies, assessing employee competencies, and determining what hiring, training, or actions you need to take to close the gaps. For example, a company may determine that the existing workforce supplies the electrical engineering competencies they need today, but much of the talent is concentrated in the baby boomer age group, and they will face a deficit in 5 years as these boomers retire. With data-based analysis, the company can take proactive steps well in advance to fill the gap.
  • Predictive retention. All companies want to reduce employee turnover costs. Being able to anticipate why top performers might leave, and taking action to stop it can help you reduce these costs. But how well do you really understand what’s causing employee attrition? For instance, a media company believed that long commutes were the key reason for high turnover in its administrative ranks. However, analysis showed that employee family obligations, such as caring for children or aging parents, was a much more important reason. By determining the real case instead of relying on a hunch, the company could take the right corrective actions to reduce turnover.

Perspective

Talent is the lifeblood of any organization, fueling the innovation required to grow and thrive in today’s hyper-competitive world. The truth is, however, that most companies are just starting to think about putting science, solutions and processes in place in this area.

Because taking this type of analytical, data-driven approach to talent management is so new, most companies will want to keep the following in mind:

  • Start with the basics. It is probably overwhelming to even think about standardizing your existing human resources data, bringing in normative data and applying new tools and processes on a corporate basis. Start by focusing on a few key problems, such as a skills gap you know exists but can’t quantify, or figuring out why turnover in a key function is too high.
  • Bring real people into the process. Don’t get so carried away with the science that you forget to talk to people in the trenches upfront in the process. This will help ensure that you are not overlooking any possibilities, and are testing the right hypotheses when you do apply analytical tools.
  • Keep the big picture in focus. Although it’s often necessaryand even advantageousto start small, continually reassess how more accurate insights into your human resources and talent information can help you improve business performance.
  • Find a vendor you trust to help guide you. Although this is still a relatively new area, best practices are emerging. Vendors with deep expertise and experience can help you avoid pitfalls and accomplish your goals more quickly and effectively.

IBM’s workforce science solutions combine 25 years of behavioral expertise, analytics and talent management solutions with the largest content library and normative database in the human capital industry. To learn more, visit http://www.ibm.com/smarterworkforce.

This is the third and final post in a three-part blog series written by SMB Group and sponsored by IBM. The series examines talent management solutions and trends.

 

Worms and Trojans and Snorts—Oh My! Perspectives on Dell’s 1-5-10 Security Discussion

digital securityLast week, I had the opportunity to join Dell’s 1-5-10 security panel discussion. This was the first in a series of small group events hosted by Dell to consider security trends and implications over the next one, five and ten years. Session attendees included Dell security experts, customers, partners, press and analysts. We discussed what small and medium businesses (SMBs) should be thinking about as they prepare for the future, and what vendors need to do to help them more easily secure their businesses.

Verna Grace Chao, director, Dell global security solutions, kicked off the session by asking us for our favorite security terms. The sheer magnitude of cyber-security issues and risks quickly bubbled up as people reeled off terms such as honeypot, snort, worms, hijack, Trojan, trampoline, phishing and ransomwear and more. I couldn’t help but think how difficult it is for business decision-makers to understand what all these terms mean, let alone stay ahead of threats and safeguard corporate information.

Of course, this challenge is even more daunting for small and medium businesses (SMBs) that lack internal expertise in this area. SMB Group research indicates that on average, only 19% of businesses with less than 100 employees have full-time, dedicated IT staff, and 27% have “no IT support” at all. Meanwhile, although 86% of medium businesses have dedicated IT staff, these resources are likely to be IT generalists, not security experts. As Michael Gray, Director, Thrive Networks, an IT solutions provider owned by Staples said, “there aren’t chief security officers in SMB.” So, despite mounting security risks and their increased reliance on the Internet and technology to run their businesses, many SMBs are under-prepared to deal with today’s threats, let alone those that the Internet of things (IoT) will usher in tomorrow.

Security Steps To Take Today

stepsFor many SMBs, the first step is to become more security aware. The Internet, mobile, cloud, social and other technologies provide many great business benefits. But they also open the door to more vulnerabilities. Too often, digital convenience trumps security, and SMBs choose not to see themselves as potential cyber-targets. Even worse, ITIC survey data shows 35% of firms don’t know if or when BYOD mobile devices have been hacked! Obviously, if you don’t know you have a problem, you can’t fix it.

According to ITIC, hacking is the #1 type of breach, representing more than 25% of all breaches recorded in 2013. Sub-contractor (14%), mobile (13%), insider malfeasance (12%) and employee error (9%) followed. In all, these breached exposed a whopping 91,978,932 records.

Without strong security measures in place, many SMBs are easy targets for hackers. And, because SMBs are often digitally connected to larger business partners, they are increasingly attractive targets. Hackers can potentially not only gain entrée to the SMB’s data, but also gain access to data of the SMB’s bigger partners.

Panelists agreed that if you haven’t yet done so, now is the time to conduct a security audit to determine what potential vulnerabilities pose the biggest financial and brand threats to the business. A solid plan incorporates both measures to prevent breaches from occurring in the first place, and those to detect, prevent and respond to incidents when they do occur.

Business owners and stakeholders need to take a more active role in this process, as Brett Hansen, executive director, Dell Client Solutions Software, explained. The security discussion needs to move from being a tech-only discussion to one where business stakeholders help identify, quantify and prioritize critical business vulnerabilities.

Since SMBs often lack the internal resources required to plan and implement the right level of security, they are increasingly turning to managed service providers (MSPs) for security expertise. A good MSP can help you get a better handle on what vulnerabilities could trigger disruptions, what the impact would be on the business, and develop a risk management plan that aligns with your business requirements and budgets. MSPs can help make security a solvable challenge instead of mind-boggling, unsolvable one. While you can’t eliminate every risk, you can close off the biggest vulnerabilities for your business—and gain peace of mind. Some of the basic measures to take include data encryption; data containerization for BYOD devices (meaning that personal and corporate data are securely separated); and securing the perimeter from unauthorized access.

Looking Ahead

telescopeTrends such as wearables, smart homes and smart cars are exciting and offer many benefits to businesses. But, they will also unleash new security vulnerabilities, especially as more devices and information become interconnected. Jon Ramsey, Dell fellow and CTO, Dell SecureWorks, commented that as cyber and physical domains continue to merge, the risk equation also changes substantially, and will require an expansion of single sign-on to help safeguard all aspects of our digital lives. Participants agreed that these trends will require a shift in the security mindset. Some of the changes forecast include that security solutions will:

  • Move beyond protecting data where it resides, to protecting data dynamically, wherever it goes.
  • Proactively account for the “human factor.” As security issues increase and become more diverse and complex, they need to become more contextual to make it easier for us humans to do the right thing. Biometrics, from eyeball to touch to even genome identification were mentioned as possibilities in this area. As Patrick Sweeneyexecutive director, Dell SonicWALL mentioned, security solutions should act more like more like an airbag than a seatbelt.
  • Become more adaptive, with capabilities to generate new defenses proactively as new threats emerge. According to Ramsey, “Every threat starts out as an unknown threat, we need to expose it and make it known to defend against it.” Risk analysis risk analysis engines will need to look further beyond individual events to act more proactively to accomplish this.              

Perspective

The good news is that in the future, security solutions are likely to be more adaptive, less dependent on humans to make them work, and more capable of proactively eliminating threats. However, far too many SMBs are falling short even when it comes to many security basics—such as encryption, containerization and perimeter security—leaving them far too susceptible to negative business consequences.

Cyber-security threats may seem endless, insurmountable and even unlikely to many SMB decision-makers. But this session underscored that while we can never eliminate all possible breaches, SMBs should be seeking out the solutions and expertise they need now to get the basics in place for today and to help them prepare for tomorrow.

International Game Technology: Winning At The Talent Recruitment Game

Smarter workforceWhether a business is large or small, identifying, qualifying and hiring the right employees is critical to innovation and growth. But, as the recession wanes and the economy picks up, more companies are hiring, and competitionespecially for top talentis intensifying. This makes it more difficult for many companies to find the talent they need to thrive.

At the same time, options to help identify and hire candidates are expanding. For instance, employee referrals, advocacy programs, social media and mobile apps are becoming more important recruitment tools, while the role of external recruiting vendors is diminishing. While these new recruitment channels can help companies access a broader applicant pool, it’s not easy to use, integrate and optimize across them.

As a result, many businesses are reassessing and refreshing their existing recruiting practices and solutions. They are looking for knowledge and tools to give them the agility they need to compete more successfully throughout the recruitment process. .

In this three-part series, sponsored by IBM Smarter Workforce, I look at how companies are using applicant tracking systems (ATS) and assessment solutions to better address these issues, and new developments in this area that promise to provide further enhancements.

International Game Technology: Fueling Growth With Talent

HomepageHeroBanner_JurassicParkHeadquartered in Las Vegas, 34-year old International Game Technology (IGT) is the leading manufacturer of gaming machines. From Las Vegas to Monte Carlo, from Wheel of Fortune to James Cameron’s AVATAR, chances are you’ve played a video slots game on an IGT machine.

While IGT has been the long-time market leader, it does not rest on its laurels. In 2011, the company introduced IGT Cloud, an industry-first which lets casino operators dynamically deploy game content across multiple properties to optimize floor efficiencies, and also offer a seamless gaming experience across land-based, mobile and online devices. In 2012 IGT acquired Double Down Interactive LLC, a social gaming company and developer of DoubleDown Casino on Facebook, to fuel IGT’s expansion through new media. In 2013, IGT partnered with Casino Del Sol in Arizona to hold the AZ, to hold the Game King Championship, the first cross-platform video poker tournamentand the largest in the world, with more than 360,000 players.

To sustain this pace of growth and innovation, IGT must be able to identify and attract top talent.

Keeping Up With IGT Talent Requirements

Talent management solutions are still relatively new. Up until 2000, IGT had—like most companiesrelied on newspaper ads and human resources business partners for candidate recruitment. People would stop in to drop off hard copy applications, and everything was stored in physical file cabinets.

In 2000, IGT started using BrassRing’s cloud-based applicant tracking system. While the solution worked well, as the company grew, they needed more capabilities in the talent management area. When Laura Callender joined IGT six years ago as HRIS Staff Analyst, her job was to refresh and revamp talent management systems at the company to ensure IGT would be able to attract and retain top talent.

IGT’s first priority was to revamp the BrassRing ATS (which is now part of the IBM Kenexa Talent Suite) to keep pace with the company’s expanding global operations and hiring requirements. According to Callender, “It’s very easy to get wrapped up in the day-to-day, and neglect new features. But it’s important to keep re-evaluating business needs and figure out what will really help improve the process.”

Callender took a fresh look at things, and extended the system to support IGT’s growing geographical footprint, and provide Chinese and Spanish language capabilities. She also added other capabilities, such as mobile functionality. “So many things that are cutting edge, like enabling mobile job applicants…five years ago, people wouldn’t have dreamed of job hunting and applying on a mobile phone. But now applicants might be at the dentist’s office and want to apply. We need to enable these new capabilities that will make a difference to our business,” says Callender.

Community and Support Are Key to Success

men with puzzle piecesIGT has found IBM’s “Kenexans” and the community of Smarter Workforce users invaluable in helping her figure out what changes will provide the most value to IGT. “IBM’s Kenexans help us stay ahead of these trends…they focus on helping us improve the way we do things and help us figure out what options will give us the biggest bang for the buck. Should we turn features on or off? What should we do differently? And how can we make things seamless for our users? So many things are cool, but what will we get the most value from?” observes Callender.

IBM’s Smarter Workforce Global Support Center helps IGT prioritize enhancements via an annual review. As important, IGT can call on their services as needed, not only for break/fix issues, but for new project tickets, and to get the “hand-holding” required to implement new functionality. “We’re in the middle in terms of what we need to implement, and they are there when we need them to help with the next step. It’s a closer degree of support than we get from other vendors,” notes Callender. “Out of all the vendors, in terms of support, I would choose IBM Kenexa any day.”

Callender is very active in user groups as well, which helps her learn from what others are doing, and what’s worked and what hasn’t for them. She’s attended six global conferences, and participated in user groups at all of them. As Callender puts it, “The user groups have really grown, from 30 to 40 attendees to over 100 at the last one. We don’t have an army of HR and IT people, but I can talk to users that do, like Pepsico, Time Warner and Disney, that we can really learn from. At the same time, there are companies smaller than uswith just 100 or 200 employeesthat we can help. It’s a really good way to exchange knowledge.”

The user groups also help facilitate conversations between the IBM Kenexa team and users. “We talk, and they listen. We sit in a roundtable, it’s very interactive, with experts and R&D engineers at each table to discuss topics such as referrals, triggers, etc. It’s very helpful and they act on our input.”

Getting Results

Since IBM Kenexa BrassRing is cloud based, upgrades are “very easy,” says Callender. “IBM rolls them out and turns them on. Some things you have a choice to upgrade or not. But they never break anything with an upgrade, which has happened with some of the other cloud solutions we use.”

Today, IGT hiring managers, external recruiters and applicants are all using the system. Last year, IGT used BrassRing to hire about 600 employees for mostly technical positions, with an average of about 50 applicants for each position. IGT has integrated BrassRing ATS with its SAP ERP system, so that when someone is hired, they are automatically moved from BrassRing to SAP. “Instead of having a person digging through emails to find candidates, ATS can do this for us much faster and more effectively with Boolean searches, and tagging,” states Callender.

IBM Kenexa’s BrassRing ATS also helps IGT answer important questions that impact recruitment strategy, such as:

  • What is the tipping point for the number of applicants for a certain position?
  • How can we do a fill requisitions more quickly?
  • What’s the best way to deal with counteroffers, or higher rejection rates?
  • How can we recruit people that aren’t currently looking for a job?

“We get our money’s worth from BrassRing ATS. We don’t have a formal measurement system, but we know we are saving a lot of time, which saves us money. There is no way we could function without it.” In addition, BrassRing pricing is based on the number of requisitions and applicants, so “what we pay for it aligns with our actual use, which we appreciate,” explains Callender.

Perspective

Talent is the lifeblood of any organization, fueling the innovation required to grow and thrive in today’s hyper-competitive world. Many cloud-based ATS solutions available, but as the IGT story illustrates, it’s not just the nuts and bolts of the software that matter. Being part of an active, engaged vendor support and user community can help you to:

  1. Map out a more effective strategy. Look for vendors and user communities that are collaborative, and can help you assess your requirements and how they are likely to evolve, and provide you with scalable solutions that you can deploy in an incremental manner.
  2. Get things right the first time. Your company benefits when the vendor facilitates knowledge sharing of best practices for things such as reporting considerations, workflow and underlying database structure that will take the most time and pain out of different processes. For instance, how do you set things up so applicants don’t need to fill out a new affirmative action form every time they apply for a new job, but can just edit information they’ve previously entered?
  3. Prioritize next steps. Your business is constantly evolving, and so is the hiring environment. But few organizations can do everything. Strategic prioritization is essential to figure out what new functionality will provide the most value.

The world of recruitment and talent management is changing quickly. This sets the stage for not only selecting the company and solution that best fits your immediate needs, but one that will provide a strong support experience to help you gain the best outcomes as your business and the recruitment landscape evolve.

This is the first post in a three-part blog series written by SMB Group and sponsored by IBM. The series examines talent management solutions and trends.

Mobility Perspectives from Intel’s 2014 Solutions Summit

I recently had the opportunity to moderate a panel discussion at the 2014 Intel Solutions Summit with panelists Bob Moore, Founder, RJM Strategies LLC; Jeffrey R Zavaleta, MD, Chief Medical Officer, Graphium Health, an integrated, mobile electronic medical records (EMR) platform; and Dave Bucholz, Director of Enterprise Client Strategy, Business Client Platform Division at Intel. We chatted about how companies are adopting and using mobile solutions in their businesses, and some of the challenges they face.

Our conversation was very interesting, as mobile is one the fastest growing technology trends in small and medium business (SMB). Because mobile devices and apps are so user-friendly, SMBs can deploy them quickly. As a result, mobile solutions are quickly revolutionizing how SMBs get work done. In fact, 91% of SMBs already use mobile solutions in their businesses, according to 2013 SMB Mobile Solutions Study, and 67% of SMBs indicate that “mobile solutions are now critical for our business,” as shown on Figure 1.

2013 SMB Attitudes re Mobile (1)Figure 1: SMB Attitudes About Mobile Solutions

As we discussed during the panel, SMBs understand that mobile solutions not only help improve employee productivity, but also enable them to improve customer experiences and fuel business growth. In fact, 70% see mobile apps as a “complement to current business applications”, and 55% think that mobile will replace some of their existing business applications.

So it’s not surprising that mobile solutions are gobbling up a growing share of SMB technology budgets. SMBs currently spend about 11% to 20% of their technology budgets in the mobile space, and 68% expect they will need to spend more on mobile solutions next year.

However, panelists also agreed the rapid and explosive growth of and reliance on mobile solutions has caught many SMBs off-guard, resulting in some key challenges, as we also found in our study (Figure 2).

2013 top mobile challengesFigure 2:  Top Challenges to Using Mobile Solutions

SMBs often find it difficult to manage the growing plethora of mobile apps for employees, especially as SMB adoption of “bring your own device” (BYOD) policies for employees doubling over the past year to 62%. SMBs also have more customer-facing mobile apps and mobile-friendly websites to manage as well.

With adoption of and reliance on mobile solutions rising, SMBs are looking for management solutions to help them to:

  • Remotely install, update and remove managed apps from devices.
  • Track and view installed/approved/blacklisted apps at the user/device level.
  • Authenticate, manage and deploy apps based on user groups/roles and restrict content access.

Security concerns are behind many of these requirements. SMBs want solutions that enable them to:

  • Lock devices when devices are lost or stolen, or the employee leaves the company
  • Provide data encryption on devices
  • Partition/separate business-related data apps from personal data and apps

In addition, rising adoption of mobile payments and other apps that collect personal information is spiking SMB security concerns on the external app side as well.

Perspective

SMBs look at mobile solutions and like the value that see from them. Consequently, they plan to increase investments both for employee apps, and for external-facing mobile websites and mobile apps.

At the same time, BYOD shows no signs of abating. Employees want to use the devices that they’re most comfortable with, and some SMBs view BYOD a way to trim voice and data service costs. But at the same time, BYOD ushers in additional security and management challenges that can result in added costs can change this equation.

As our panelists discussed, this means that SMBs need to be more strategic upfront about using mobile in their businesses. Think not only about the devices and apps you want to use, but who will use them. Consider both the business outcomes you need from mobile solutions–and the management capabilities you’ll need to have to safeguard corporate and customer information.

Mobile management, security, and consulting services spending categories will see significant spending increases as SMBs endeavor to reap more value from and do a better job managing an increasingly complex assortment mobile devices, services and solutions. Given that many SMBs lack adequate IT resources and mobile expertise, we expect that they will increasingly turn to external solutions providers to get the management job done.

For more commentary on this, see the follow-up video interview.

How The Cloud Can Help SMBs: A Conversation

Screen Shot 2014-06-30 at 12.27.13 PMLast week, I had the opportunity to be a panelist on IBM’s first virtual influencer event on Spreecast, (a great new platform that connects you with people through video conversation) about how the cloud can help small and medium businesses (SMBs) to build their businesses from the ground up, compete more effectively with big businesses, and grow.

Paul Gillin, veteran tech journalist and social media expert at Profitecture (@pgillin) moderated the panel, which included me, IBM General Manager, IBM Midmarket John Mason (@jcmason), and Subbu Balakrishnan, CTO and co-Founder of Good.co (@backslash0), a career platform built on SoftLayer that helps people find best-fit workplaces and jobs. 15-20 other SMB thought leaders also joined us via Spreecast’s chat function.

You can watch and listen here for the full conversation, but here are a few of the key perspectives I took away from this lively and interesting discussion:

  • All panelists agreed that the momentum for SMB adoption of cloud services is rising rapidly. SMBs increasingly see that by using cloud solutions, they can focus more of their resources and money on their core business, and leapfrog slower-moving competitors.
  • With the help of SoftLayer, Good.com went from idea to over 100,000 users in a year and a half using a credit card to pay for cloud infrastructure. According to Subbu, this is something the 15-20 employee company would not have been able to accomplish if they had to build out their own cloud infrastructure.
  • Many startups are forgoing on premises software entirely, opting to do as much as possible in the cloud. The cloud removes technology and capital barriers to get up and running. They can skip a whole generation of software to get their companies off the ground more quickly. The cloud is quickly becoming the preferred way for startups to go.
  • Once you’re up and running, the cloud gives you a flexible infrastructure to scale and grow the business.
  • The rate and pace of technology change continues to increase. The cloud not only provides SMBs with the benefits of infrastructure scale, but with access to the increasingly specialized technology skills and expertise that are necessary today.
  • There is no one-size-fits-all when it comes to the cloud. Public, private, hybrid, shared, or dedicated—each company will have different requirements for different solutions.
  • Business partners play a critical role in helping many SMBs take full advantage of cloud services by fully understanding the SMB’s business requirements. Skilled and trusted partners can translate SMB business requirements into the best-fit cloud solution so the SMB doesn’t have to parse through all of the cloud variants on their own.

Looking at the Big Picture for SMB Sales and Marketing: revenue + associates

Laurie: Hi, this is Laurie McCabe from the SMB Group. Today I’m talking to Louis Gudema, president of revenue + associates, which helps companies generate more revenue through measureable sales and marketing improvements. So Louis, I’ve known you for a while and I’ve know that revenue + associates is a new company for you, what’s prompted you to start it? Louis-casual-200-pix-wide

Louis: I had a company before for a dozen years, a digital agency that I sold in 2009 that became one of the national leaders in our niche. Then I did business development for two other agencies for several years. What I saw was a need that wasn’t being addressed head on, which is corporate revenue generation. A lot of agencies and people splinter it and say we’re going to help you with your website, we’re going to help with search, or we’re going help with advertising or with sales training, or whatever it may be, social media, but they’re not looking at the whole picture. Those point solutions may not be what a company really needs, and there may be other places where the best revenue opportunities lie for them.

Laurie: Yes, I think that’s a problem all of us can relate to. We know there’s many solutions out there but we have to frame up the problem and make sure we’re getting the right solution in place for it. How do you go about solving for that because it’s pretty complex?

Louis: I look across what I call a sales and marketing audit. There’s currently over a thousand companies, for example, providing sales and marketing software and dozens of channels from things like social and search advertising to traditional things like print. So in a sales and marketing audit, I look across a company’s whole sales and marketing process, it’s a 100 plus point audit that looks at what technologies are they using, what is the strategy, internal operations, governance, budgets, how are they onboarding people and training people, do they have the staff, are there skills gaps? From that I identify the best short, mid, and long-term opportunities for the company and start working with them to drill down.

Laurie: Who are your services mainly designed for? Small, medium or larger companies, what’s the right size company for this approach?

Louis: It’s a company that really wants to grow revenue. I’ve seen surveys that three out of four small business owners don’t want to get any bigger. So I want to talk to the fourth one. I’m especially focused on mid-market companies with say 10 to 100 or 200 million in revenue. I’ve worked with companies like IBM and Philips Healthcare and Avid Technology and other very, very large companies and done millions of dollars of business with them but in terms of starting this new company and the particular approach, I’m especially focused on that mid-market.

Laurie: I know you recently published a report called Revenue Opportunities, what is that about and what did you find in there? revenue-opportunities-report-cover-190

Louis: What I did was I took a look at 196 mid-market companies in New England that were operating on a national level. Looking from the outside what could I see about how much they were adapting modern sales and marketing programs. This looks at things like did they have analytics on their website, were they doing search advertising, were they doing search engine optimization, did they have a mobile ready site? Nine different things that could be seen from the outside, and it wasn’t only because those nine things can be very valuable and generate a lot of revenue when used well.

I felt they were also an indicator of the maturity and depth of a company’s revenue generation program. What I found was that of these 200 companies that operate nationally, so they all should be really eager to do as much as they can to generate revenue because they’re in competitive national or global markets. In fact, the average among those companies was that they were using less than three of those nine important programs and the median was two. It was a very, very low adoption rate.

Laurie: Why do you think the adoption rate for these things that are so directly tied to revenue so low?

Louis: I think it’s a couple things. The real outlier at the top end were SaaS and venture-backed companies. These are new companies, they’re very data driven and they’re very comfortable with technology, and they’re part of a world, especially that venture-backed world that knows this whole modern and very effective way to really ramp up revenue quickly.

I also get into other industries, like manufacturing or medical devices or engineering or architecture. I looked across a lot of industries. Then adoption rates plummet a lot so I think you have a situation where a company that’s doing okay, and has traditional ways of generating business. They know how those work for them and there’s this massive number of new things flying at them and they don’t know what’s real, what’s not real, what’s important. They don’t know where to start. They may have even tried one or two things but sometimes if you dip your toe in the water you can’t learn to swim, sometimes you have to really go in and embrace something to get the results. For a number of reasons the adoption of these technologies has been very slow, nationally even, from studies I’ve seen.

Laurie: These results you’re getting from these companies that are all in New England, do you think they represent the larger mid-market in the U.S.?

Louis: Actually, if anything, New England may be a little ahead of the national average because half of New England market is Massachusetts and Boston is a big part of that. There’s a lot of newer SaaS and venture-backed companies in Boston and Massachusetts. SiriusDecisions did a report that came out the same week as my report. They only looked at one of the nine factors, which was marketing automation and said just 16% of B2B companies nationally are using it. In my sample it was 28%. So it’s really low.

It’s not that I’m saying that these nine programs are the end all be all. As I said I’m really taking them at kind of a litmus test or thermometer to see how deep, how well built out are the revenue generation programs. There’s lots of other things like events and email newsletters and predictive analytics and lots of other things that companies can be using traditional and digital that may be the most effective for them, but these are the ones I could see.

Laurie: In the report it discusses the upside for the companies who do get more sophisticated in terms of how they generate revenue and what programs they put into place. If you aren’t doing some of this stuff right now where should you go to get started?

Louis: Well, there are several things. First, you need to adopt the mindset and recognize that this is an important area for revenue growth and something you need to invest in. You need to adopt a data-driven mindset and realize that your gut may not always be right and sometimes the data will take you someplace new. You also need to be willing to experiment and even fail because these things will not work 100% of the time and they take implementation and analyzing and optimization to get it right.

You have to invest in people and make sure they have the skills and that you’re adopting the right tools and that you know how to use them, and you have to find someone who can probably guide you through it. That thousand plus programs, those are in dozens of categories. Some of those categories are important to some companies and not others.

Once you’ve adopted a commitment to it and to budgeting and training and so on and so forth you’re going to have to take some time to figure out what are the right things for you and how to get them to all work together. That’s where the big payoff is, it’s not adopting one or two programs, but if you adopt a marketing automation program integrate it with your CRM and integrate it with your email marketing and other things so that everything starts working together.

Laurie: Louis, where can they go to learn more about the services that revenue + associates provides? Louis: Our website is revenue + associates,. I also have a blog.

Laurie: Can they get a copy of the report there?

Louis: Yes, you can get a copy of the report there, you can download it there. There’s actually a blog post which is specifically about an SMB action plan, some of the things for a company that is new to these more modern programs, where are some of the places that you can start.  

Laurie: Sounds great. Thanks again, Louis, for your time today, for joining me on SMB Spotlight. This really looks like something a lot of SMBs will want to look into because I think even if you don’t want to grow your business in terms of people, most businesses want to become more profitable and I think that all comes into play as well. So thank you again.

Louis:Thanks, Laurie.

Five Things SAP Needs To Do To Make “Simple” Real

SAPPHIRE_NOW_Orlando_2014_004_t-e-JPG@900x598There’s probably nothing harder for a business to accomplish than these two things: 1) make the complex simple; and 2) change market perceptions. But, at SAP’s recent SAPPHIRE NOW 2014 user event, SAP CEO Bill McDermott and other SAP executives ambitiously outlined SAP’s strategy accomplish both of these challenging goals simultaneously.

On the first count, SAP discussed how it will make its notoriously complex software easier to use so that customers can reap more value and streamline their own operations. On the second count, SAP is striving to shift the market’s view of SAP from that of a behemoth that is tough to business with to a kinder, gentler SAP that is much easier for customers and partners to work with.

At the event, SAP outlined many of the investments it is making to help it meet these goals. These ranged from Fiori, SAP’s new (and now free) roles-based user experience for SAP solutions, to its cloud first, mobile first development mandate. SAP founder Hasso Plattner discussed how SAP must redesign what it does with data, independent of what it has done in past 50 years. Plattner emphasized that SAP is moving from delivering monolithic business applications to a “minimalist,” modular approach, with HANA as an underlying and unifying platform. Bill McDermott also discussed the steps SAP is taking and plans to take to reduce internal complexity and management layers at SAP, and get closer to customers and prospects.

In all, SAP made 70+ announcements at Sapphire to back up its newfound direction for “simple.” I’m not going to cover them here, because many of my analyst and press colleagues have already done so in ample detail and with great acumen. However, I will share my suggestions on higher-level approaches SAP needs to incorporate to succeed in its goal of making simple real.

  1. Make SAP events more interactive and engaging.

    After business hours concerts, buffets and have become table stakes at tech industry events. The new bar is to make the entire event more interactive and engaging. Innovative vendors are engaging attendees with interactive, visceral experiences during working hours to help drive home key messages and insights. For instance, SAP could have given attendees a Fitbit or similar device, and set up stations where we could track, visualize, display, query the data collected using HANA and other SAP tools? Providing engaging, hands-on evidence that lets people experience the change would drive home the simplicity message much more convincingly.

  2. SAPPHIRE_NOW_Orlando_2014_011_t-e-JPG@900x600Mix up the executive ranks to get a broader range of perspectives.

    Panelists on stage at the SAP press conference with the Global Managing board consisted of 8 white males and 1 white female, many of who were German. For all I know, these may be the most competent people on the planet! But too much homogeneity can sometimes blind you to opportunities and issues. If SAP wants to become more relevant to a wider range of business decision-makers, I think it will need to foster more diversity within its own senior management and executive ranks. Not only in terms of gender and ethnicity, but also in terms of adding people from more diverse industries, company sizes and types of businesses into the inner circle.

  3. Use social media more effectively.

    SAP has expanded its social media presence over the last few years, but to me, it seems like it spends more time using social to trumpet the SAP message, and not enough time interacting with relevant constituents in meaningful 2-way conversations. For instance, a couple of SAP product groups just started to follow me on Twitter at SAPPHIRE. Not a big deal—except that I’ve been tracking and writing about their stuff for years. If SAP really wants to get closer to customers and engage with more prospects, executives and employees should use social media to prove that it is a company that is accessible and easy to do business with. Why not put HANA horsepower to the test to track, engage, assimilate and evolve based on ongoing conversations across the social media universe?

  4. cloudStop saying SAP is “the” cloud company.

    Unfortunately, this is a statement SAP executives made numerous times at the event, which, as I tweeted, probably caused heads to explode at the likes of Salesforce and NetSuite! While SAP is aggressively moving to the cloud, it is getting there much later than these pure-play, born on the cloud companies. In addition, what’s the upside of even trying to stake this claim this late in the game? Though the puck is certainly moving to the cloud, survey after survey suggests that a hybrid IT environment will be the norm for most companies for a good long while. Positioning its ability to give customers choice is a much more believable and viable path for SAP.

  5. Invest more in small and medium businesses (SMBs). 

Newer solutions such HANA are key to SAP growing wallet share in its flagship large enterprise accounts. But to really boost growth, SAP must become more relevant to more SMBs. While SAP claims that 207,000 small and medium enterprises (SMEs) use SAP solutions, let’s put that in context. First, SAP defines SME as companies with up to $1 billion in revenues—a much higher upper end than most tech vendor’s use. Second, SMB Group defines the broader SMB market to include companies with 1 to 999 employees. Given this definition, we estimate there are roughly 278 million SMBs worldwide. Although SAP Business One has done an admirable job of growing its SMB base and relevance, as a corporation, SAP has a long way to go to make real headway with SMBs—who use price and ease of use (aka simplicity) as key benchmarks when it comes to selecting IT solutions. In other words, SMBs are the litmus test SAP should use to determine if it is making progress with its goal of being simple to use and work with.

I have no doubt SAP is sincere in its quest to simplify its solutions and become an easier vendor for customers to work with. After all, it must achieve these goals to thrive, because simplicity increasingly beats complexity. However, SAP is only at the starting gate. How well it runs the race depends on how quickly it can move beyond using simple as a marketing slogan to truly instill simple into its solutions and its corporate culture.

Why Vendor Definitions of SMB Size Matter

The SMB “market” actually represents a very diverse, fragmented collection of businesses—from solopreneurs running home-based lifestyle businesses, to mom-and-pop shops, to fast-growth startups, to midmarket firms who’ve been in business 30-plus years—as well many more permutations and combinations.

While all sorts of segmentation nuances must be considered, technology vendors most often use employee size as a high-level proxy to define SMBs.

Size is a key criterion because it correlates strongly with IT resources (Figure 1). For instance, while 86% of medium businesses (100-999 employees) have full-time, dedicated IT staff, only 19% of small businesses (1-99) have these resources. In fact, external contractors are the primary means of IT support for about one-quarter of SMBs, and some—mostly very small businesses with fewer than 20 employees—have no IT support. SMBs are also less likely to have formal IT evaluation and budgeting processes than their larger counterparts.

Figure 1: IT Support Among SMBs

Slide1

Business process expertise—whether in data analysis or marketing—also maps closely to business size. Employees in smaller companies tend to wear lots of hats, and few are specialists or subject-matter experts. As businesses get larger, they start to hire full-time marketing, sales, financial or other types of professionals.

In fact, as cloud computing becomes mainstream, alleviating many IT shortfalls, the level of business process expertise becomes even more important. After all, cloud computing can make it easy to deploy a technology solution, but without business process expertise, its difficult to get business value from any solution.

As a result, SMBs of different sizes and shapes often require very different marketing, sales, solutions and services from vendors. However, there is little consensus among technology vendors as to about what constitutes an SMB, even in terms of something as measurable as employee size (Figure 2).

Figure 2: How Technology Vendors Define the SMB Market

Slide2

This means that SMB decision-makers need to determine how vendors’ definitions upfront. If a vendor’s “mental map” of SMB conforms to the way you view your own business, then you’re much more likely to find a good fit. If not, you may end up wasting a lot of time researching and evaluating something that was intended for another target “SMB” audience.

Six Inspirations for Small Businesses From ICON14

WordItOut-word-cloud-394443Entrepreneurs have always been a rare breed. And, as the U.S. employment rate has improved, the overall rate of business creation has fallen from 0.30 percent in 2012 to 0.28 percent in 2013, according to the annual Kaufman Index of Entrepreneurial Activity. All age and ethnic groups experienced declines, except for the 45 – 54 year-old group. Furthermore, according to the U.S. Small Business Administration, over half of all new businesses fail within five years.

So is it any wonder that many small business owners feel like they are isolated, misunderstood and lacking in the guidance and support they need?

Infusionsoft, which develops marketing automation solutions for small businesses with 25 or fewer employees, can relate to this dilemma—and is committed to helping. The vendor not only provides small businesses with effective, affordable solutions to help “attract, sell and wow customers,” but also offers up an abundance of business guidance and support—key ingredients for lasting business success. To quote Clate Mask (@ClateMask), Infusionsoft’s founder and CEO, “I don’t care about big business! We are totally committed to the true small business market—and changing the definition of success for small business owners.”

ICON14ICON14, held in Phoenix last week, represents Infusionsoft’s flagship commitment to help small businesses. In addition to offering attendees the prerequisite tips and tricks to get the best results from its solutions, Infusionsoft provided its 3,000-plus attendees with insights and expertise needed to create thriving, sustainable businesses and achieve work-life balance.

ICON14 featured both entrepreneurial leaders, including Simon Sinek, Seth Godin, JJ Ramberg, Jay Baer and Peter Shankman, as well as its all-star small business customers, to help guide entrepreneurs to beat the odds and create successful enterprises.

These speakers and Infusionsoft executives imparted many pearls of wisdom during the conference (check out the Twitter hashtag #ICON14 for more). But here are a few that really made an impression on me and that I wanted to share.

  1. Develop a positive corporate culture. Most businesses view happy customers as key to success. Yet what are the odds of creating happy customers if you have miserable or just unmotivated employees? As Simon Sinek (@simonsinek) noted in his talk,“Leaders need to set a circle of safety within their organization so their teams can do wonderful things.” Employees who feel appreciated, included and recognized are your best business advocates. See my interview with Infusionsoft’s VP of People, Anita Grantham (@anitakgran) for great ideas on how to build this type of culture.
  1. Establish a system to grow. Entrepreneurs should take advantage of cloud computing’s “no infrastructure investment required” model to help kick-start and organize their businesses for sustainable growth. Small businesses can use technology to enhance relationships by taking the friction out of process and freeing up more time to focus on customers. Systems also enable small companies to scale more easily and maintain better work-life balance. When the owners of Cleancorp (@CleancorpAU), an Australian commercial cleaning service and the ICON14 winner, did everything manually, they had no time for vacation. Since they began using Infusionsoft to automate sales and marketing, they’ve grown the business 575 percent, and the two co-owners took 9 and 13 weeks of vacation last year.
  1. Once you have a system in place, let go of process and let employees do their jobs. As Clate Mask says, business owners need to spend more time working on the business and less time in it. Or as Christian Isquiedero, CEO of Left Foot Coaching and ICON finalist put it, business owners should ask themselves, are they buying you or your process and mission? “You aren’t scalable, but your process and mission is. So build a system to “Verify, Clarify, Document, Teach and Automate.” Let go of the block and tackle, let employees do their jobs and manage what’s going on via a dashboard.
  1. Remember the sale starts with “No.” Small businesses that succeed follow-up regularly with prospects to stay top of mind for the next opportunity. Keep connecting with people every day, not only to sell, but to be there when the timing is right, according to Peter Shankman (@petershankman). Personalize communications with emails, offers and campaigns tailored to different prospects’ histories and behaviors. And don’t forget to integrate offline communication—phone calls, events, on site meetings, etc. with online activities to help humanize the business.
  1. Be relevant, brief and write well! Also from Shankman: With so many ways for people to get content these days, you need to find out what your audience wants and how they want it. Make sure you communicate relevant information, or people will tune you out. Remember that attention spans are shrinking; you have just 2.3 to 2.7 seconds to capture someone’s attention, so keep it short and sweet. Finally, learn to write or hire someone who can. Poor writing is a turn off.
  1. Make your sales process a customer service process. Heather Lemere (@salonbusiness), owner of Salon Success Strategies, a marketing agency for salons and spas and ICON finalist, uses strategic lead qualification to reduce high sales costs by eliminating bad leads to focus only on the best prospects. With a smaller but better qualified prospect pool, you free up time and resources to turn the sales process into an educational customer service process, which in turn helps close more business.

The wisdom, camaraderie and energy at Infusionsoft was truly amazing. Not only did it help educate and inspire those of us that are already pursuing our passions as entrepreneurs, but it should also help motivate those who have been tentative about making the leap! Remember, YOU create your own opportunities—don’t wait for an employer to do it for you!

(Disclosure: Infusionsoft covered my travel expenses for ICON14)

 

Follow

Get every new post delivered to your Inbox.

Join 9,768 other followers