Digital As Usual Themes

Looking into the current marketplace, there are three dominant trends in current digital exploitation:

• Exploiting Cloud Platforms

• Business Agility

• Value Based Management

Most commentators focus on either cost or scalability issues when discussing cloud platform exploitation, citing this as an uninspired approach to mechanisation of what is already there, which has been described as making caterpillars faster (as opposed to transforming them into butterflies). However, cloud platforms and SaaS applications are great for businesses wanting to standardise and simplify their businesses, either as a basis for performance improvement and automation or as a means of making integration of acquisitions (under M&A) easier. The latter often being a tool used to bring new products and know how into a business for further innovation.

Business agility is an evolutionary extension of not just Agile Development and Design thinking, but a full blooded extension of Lean approaches across Integrated Product Teams and DevOps styles of delivery to continuously experiment with opportunities and deliver new value at pace. If a business is not a start up and has not simplified its processes and applications, this can be difficult to achieve. In the end, though it is all about focusing on customer value.

Value based management has two strands of thinking; firstly it connects the dots between market insight, customer experience and business agility to focus on value; secondly it recognises that a digital business will spend proportionally more on digital and information technology than a traditional one, so it needs to understand how and why it spends the money (and other valuable resources) and then to make sure that it balances spend appropriately between maintenance, protection, enhancement and revenue or value streams, as well as innovation.

Value First,Timeliness Second and Cost Third - V1T2C3

We regularly see news items and posts on big government projects which have failed and Public Accounts Committee declarations which castigate Ministry of Defence for project cost overruns and late deliveries. We also have seen too many instances of banking system meltdowns in recent years, coupled with major failings in BA (British Airways) systems.

What do all these things have in common?

Broadly speeking it could be said that they all occur in environments where "Efficiency" or "Value for Money" is held at a premium over everything else. In these circumstances, Efficiency is actually another way of saying Cost Cutting and Investment Containment. In such environments, Quality, Value and Customer or User Experience are traded for keeping to budget. Timeframes get squeezed to meet the allowed spend profile and risk management is subordinated to keeping spend in check.

Over time, this results in a house of cards syndrome where multiple sub optimal solutions get patched together in ever more fragile comninations and governance is subordinated to budget conformance. The room for experimentation and evolution of the right solution is lost and cautious groupthink starts to destroy innovation and build catastrophy into strategy, planning and control of the business. Innevitably this leads to failure, finger pointing and further failure to rectify problems. So repeat failures start to happen.

What is the remedy?

Sack the CEO and The Finance Director! Appoint an empowered CIO. Pursue a culture change programme. Start Focussing on quality and value, which means reconnecting with both customers and the people who deliver the business. Adopt a philosophy where it is better to deliver a small amount of value incrementally and on time than to pursue an everything at once approach. Use design thinking. Understand your business architecture. Align your risk appetite to value (not budget). Experiment with Lean Delivery. But most of all remember that efficiency is not calculated as:

Efficiency = Q/t

(where Q = quantity produced, t = time period of production)

Instead, use the equation:

Efficiency = (Q-D(1+n))/t

(where D = the number of defects and n = the number of things produced needed to pay for the defects) 

So for example if profit margins are 10%, then 10 satisfactory units are needed to pay for the cost of the defective one and n = 10. If 100 units are produced per day, 1 unit is defective and n = 10, then Efficiency is (100 - (1 + 1 x 10))/1 = 89. If 99 units had been produced with no defects, then efficiency would have been 99. It is better to focus on quality and value, than time or cost. Time and cost have their place, but should be subordinated to outcomes.

Cloud Expo 2019 Shows The Way

This week we had the annual Cloud Expo Exhibition in Excel (London), combining multiple tracks for IoT, Cyber Security, Big Data, Blockchain, AI, Data Centres and Big Data.

As usual the show was massive and noisy, though this year definitely there was more buzz and energy than last year and there appeared to be more exhibitors including a new batch of database and big data tool providers as well as old school adaptors such as Oracle and IBM.

Cloud Expo has a continuous stream of presentations, but to be honest they are difficult to extract much value from, as they are short and the venue is extremely noisy. The couple that I attended just served to reinforce what I thought that I knew already.

One of my personal favourites, Dark Trace, was there with its machine learning enhanced security technology (see past blogs), but I got more excited to see that Check Point had launched CloudGuard. Whilst Dark Trace will help dig you out of problems, Checkpoint is there to stop you getting into them in the first place. On a first inspection of claims and taking Checkpoint's pedigree into account, CloudGuard provides essential and robust means for securing SaaS and IaaS solutions and provides a platform for securing heterogeneous services such as Azure, AWS and Google Cloud Platform as well as many major SaaS applications such as G-suite, Salesforce, DropBox and 0365.

The other great thing which leapt out at me was Aptio's extended offering around cloud. Aptio, if you are not familiar with it, provides ABC (Activity Based Costing) software for IT operations. This assists greatly in understanding the unit costs of your key services at both an infrastructure tower level and an application level. So for example you can calculate how much it costs to support a user of an ERP system, or to digitally support a retail client, as well as understanding basic things such as what does it cost to run a server or support our business continuity plan. As the Aptio software plugs directly into the Finance Module of most ERPs, it uses real financial data and adapts to changes in pricing as they are incurred. So what's new? Aptio has added the capability to deal flexibly with cloud service providers. This makes it much easier to model the costs of say a cloud migration and compare different service providers, For existing users of cloud services it provides the means to model costs of hosting on different platforms on a day-to-day basis and adapt to changing pries and cost models of vendors to identify re-hosting opportunities for cost optimisation. Given the sheer volume of data and relationships to be addressed, this is an almost impossible task to keep up with if performed manually with a spreadsheet, so is obviously a great tool to assist in managing an enterprise estate.

Look Outwards Look Inwards - What Does it Take to Innovate?

The Leadership Crisis In Innovation

Today's Digitalised Business Environment has caused a crisis in leadership within most large global organisations. Many CxOs have come to realise that they and their colleagues in their Senior Management Teams are part of the problem. Though some remain incredibly blind to this fact.

Why is it that business leaders actually inhibit their organisations' efforts to transform, digitalise and innovate? There are many possible answers to this question, though for American and European companies, one of the answers may be that the background of the leaders dose not predispose them towards innovation. Too many organisations are dominated by people with Accounting or Legal backgrounds and unfortunately these professions tend to lean towards conservatism, compliance and enforcement of rules, rather than trying to break the mould or implement business and cultural change.

Another possible answer is that most management teams don't actually function as teams. They are too often populated by people who are locked into functional siloes and turf wars. So whilst it would be simplistic and cruel to accuse them of all conforming to the often quoted idea that only selfish monomaniacs reach these positions, the environments in which they work often pushes them to behave a like they are. This makes it difficult to build the collaborative, innovative and risk taking culture needed to survive and grow in the new digital market place. 

So various people have been researching what it takes to become an Innovative Leader. See HBR and the Conference Board.

A Model Of the Innovator as Leader

The diagram below summarises the findings of a couple of pieces of research and the author's own experience. So it may not be perfect, but it at least represents some contemporary thinking on the subject and, hopefully, is useful.

Whilst it may be too simplistic to state that an innovative mindset requires a leader to look both outwards and inwards, this does underpin a lot of what is needed. In the model, VALUE, CURIOSITY and CONSTRAINTS interact in an almost chicken or egg situation (which came first?). A lot depends upon context and situation as to which is the starting place but a sense of each is crucial to an Innovator. 

VALUE is key because understanding what is valuable to your organisation and its customers (or other stakeholders if it is a Not for Profit one). Almost everything that an organisation does, should be aligned to optimising value, i.e. growing, preserving or protecting it. This includes innovation. So it is fundamental to understand what value means to he organisation and to its customers. Of course if a leader is thinking about starting a new enterprise, then some opportunity identification may be required first.

Understanding the CONSTRAINTS that an organisation operates under and what currently dictates market behaviour in its industry or sector is also fundamental, because this drives the Why questions? Why do we do things this way? why do customers behave like that? why do we not do this. Why are the constraints there and why don't we do things differently? (The why questions are sometimes called the 5 whys or 7 whys and basically, is a process of asking why enough times to get to the root of current behaviour) which then leads to What if questions such as What if this constraint did not exist? what would happen if we did this differently? etc. which lead to some theories about what works now and what would work in the future if the rules were changed, as well as some options for how to make these changes actually happen, which are postulates about how to disrupt the market place and are sometimes called BIG RULES.

CURIOSITY comes in from the other angle of observing what happens in the market place and asking why people do things. It also involves consciously looking outwards into different industries and disciplines through networking, attending industry events and carrying out research to see how they tackle different problems and then thinking about what lessons can be applied to your industry or even would spur new products or a startup business. It has been observed that many innovators are T shaped, as opposed to I shaped. I shaped people, only think about their discipline and nothing else. T shaped people, whilst having deep knowledge in their own area, also exhibit curiosity about understanding wider practices outside their specialism and applying them in a joined up manner. Curiosity identifies opportunities and asks why as well as what value can be derived from change.

These 3 themes of Understanding Value, Reviewing Constraints and Curiosity lead to the development of Vision. However, in most cases it requires an energised team to deliver a vision and successful innovative leaders involve the team in building a SHARED VISION of how things could be. This is an essential step in TEAM BUILDING as it helps motivate the team and encourages it to amplify any innovative efforts. Though a complementary aspect of Innovators is speed. Getting to market with an innovation, delivers most value if an enterprise is either first or second to market with a well targeted product. Hence VELOCITY of delivery is important, though it needs to be tempered with actually meeting a real customer need and being reliably and economically deliverable. This leads to the use of EXPERIMENTATION to test out the understanding of these needs as well as what actually works, and may involve exploration of OPTIONs to optimise the product. VELOCITY is also re-inforced by agreeing mutual stretch targets with the product delivery team. Note, the term mutual is important, as this is part of sharing and building trust. If the team buys into the targets, then trust and openness are more likely to be encouraged, leading to better team performance.

Other aspects of TEAM BUILDING and successful product development include DIVERSITY of the team and fostering an information based culture of decision making. Diversity in the actual structure of the team involves not only building a multi-functional team involving the internal disciplines needed to design, develop, deliver and market the product, but also where practicable a customer element. It also may include multi-cultural, multi-age aspects to encourage creative vitality by encouraging multi faceted view points within the product development process.

Adopting an Information based approach, means that the team must be INFORMATION RICH. Where it does not have information to support its decisions, experiments, trails, prototypes or other research should be conducted and the knowledge gained should be readily shared to support both effective and informed decision making, but also foster trust and understanding within the team. Though sometimes it has to be recognised that it may not be practicable to collect data before a product is launched. In this case, the team may have to either build features into the product which collect the data, supporting future product iterations, or use other means such as agile marketing to test hypotheses.

The last bricks in the model are SIMPLICITY and SYSTEMS THINKING. Taking an end-to-end view of how a product is delivered, enables the product team to anticipate likely problems as well as analyse operational performance and customer experience during delivery, so that continuous incremental improvements can be built into the product, refining its capabilities and delivery. SIMPLICITY, is a principle that should be applied as far as practicable. The product itself should be made as simple as practicable to deliver the value required by the customer. The delivery processes should be kept simple too, ensuring that activity is concerned with delivering value or experience. If complexity has to be increased to add value, e.g. by operating in multiple markets, then the team should look to see what else can be simplified. 

Conclusion

A leader needs his or her team to perform, because the leader can not do all the innovation him (her) self. The Team will only work if it is empowered, informed and enthused. so innovative leaders can set the context and the challenge, ensure that their teams are well informed, but also challenge them on value and pace. However, this does mean avoiding death marches, mountains of red tape and punishing the innocent, when things don't go as planned. The old ways have to die.

Digital Revolution for the Hospitality Industry?

How would Digital affect a traditional industry such as the hotel business? Well there's certainly potential when looking at what happens today and it goes beyond just a clean up of the myriad of decrepit and unintegrated applications used today.

Starting with the first point in the Customer Journey Map, selecting a hotel, most hotels have their own website and are marketed through a number of web sites or via companies who have block booked groups of rooms within a hotel. (These websites and companies are often referred to as OTAs or on-line travel agents). At least one company, XcelTrip, is deploying Etherium Blockchain to disintermediate the middle men and provide hotels with a greater throw weight, whilst retaining a larger share of revenue for themselves, via a Distributed Travel Environment (DTE). 

Also, Virtual Reality offers a much improved way to experience what the hotel is like before you get there so, not only can you understand what the room and facilities are like, you can also see what the view is like and understand the location in which you would be staying. This should be a great draw, especially for premium hotels offering on site experience or prime locations as a special feature.

Secondly the arrival and process can be greatly improved, especially for frequent travellers and participants in hotel loyalty schemes. If the hotel room has been booked and assigned, there really is no reason for someone to queue at a desk to receive a key. Payment details and identification (e.g. photo or passport) details should already have been captured as part of booking or from stored information within the loyalty scheme database. So it should be more than easy to provide the room details and an access code via text, email or an app used by loyalty scheme members. In this case a traveller can go straight to his or her room, unless a porter is needed. Any final identity checks or validations could easily be carried out by facial recognition as the traveller enters the room.

IoT and the current generation of home automation technology show how much the room iteself can be automated from smart locks, through smart controls for HVAC (Heating, Ventilation, Air Conditioning) provision of voice control for curtains, lights, temperature, locks, TV and entertainment systems and support for AI based translation, so visitors can understand all television channels irrespective of the languages that they use. They also should be able to order room service in the local language via AI translation too. 

Hotels could also consider providing some of the range of digital devices now available to assist in sleep augmentation. (see previous posts). As it has been shown that people do not sleep well in strange environments. Typically on the first night anywhere new, one hemisphere of the brain does not turn off and remains on alert through this first night, leading to less restful sleep.

Other features such as instrumenting the plumbing should make it easy to centrally monitor rooms for problems with leaks etc. and IoT enablement coupled with presence detection should allow for efficiencies to be made in room heating and cooling. Other automation devices such as robot hoovers are a natural application within a building which has a high requirement for daily cleaning and a fixed layout. Operationally, they should contribute to greater room performance and availability. 

Given machine learning's capabilities, it should also be possible to match guest lists with people's cultural backgrounds, previous ordering habits and stated preferences (when booking or entering their details into loyalty scheme systems) to ensure that menus are tailored on a daily basis to what is not only seasonal, but also meets the needs of guests, increasing the likelihood that they will spend on meals within the hotel, rather than going out to dine. Similar principles apply to the stocking of bars and menus for room service.

Delivery of room service meals, drinks and other supplies such as spare tooth brushes can also be effected using RPVs (remote piloted vehicles) for a significant proportion of such transactions. Typically this could shave 15-30 minutes off the wait for a room service request to be fulfilled, doing away with those annoying waits when staff are over stretched.

Checkout, just like check in, could be greatly streamlined. Almost everyone pre-authorises a payment card these days. So the only real issue is dealing with any queries about a billing or  with any complaints as typically 4 out of 5 checkouts are just confirmation of what everyone already knows and receipts can be provided electronically. So if a busy guest just wants to check out, all they should do is enter a swipe out code via an app, and house keeping can immediately add the vacated room to their list.

Finally, a guest's activity during his or her stay, provides a trail of data rich events which can be mined for insight into overall guest behaviour as well as individual tastes and needs, leading to optimisation of future marketing efforts and incentives for repeat business aimed at all customers, specific cohorts or just the individual. This includes increased flexibility in pricing to match capacity, demand and financial yield. Although there are also context based insights for planning refurbishments and room maintenance to fit better into periods where demand is either less intense or less profitable.

So the new hotel is coming, more automated, less frustrating and increasingly tailored to the traveller's needs.

Human 2.0 - The State of the Art

What's Needed for HCI

Human Computer Interface based technology is already here in many simple forms. However, in a previous article, I mentioned that lots is needed before a mature and safe implementations can be accepted with minimal risks of Sci-Fi type Terminators or the ability to hack implanted technology (see Stealing Light by Gary Gibson for a reference).

In a previous article I mentioned some pre-requisites which are summarised in the diagram below. 

Basically, we need to crack not just the ability to interact with technology, but some quite meaty problems around dealing with information overload, shifting contexts of use, human psychology, individual preferences and behaviour, security, future proofing and dealing with the inevitable SNAFUs that technology incurs.

One of the key issues will be how much is the technology wired into us and how much will be accessed in a wearable manner.

In the meant time there are a whole host of areas where universities, the defence establishment and consumer led technology companies are developing one-off single application devices and demonstrators.

Some of these are mentioned below.

Health Monitoring

There's lots of activity around the sports and wellness area of wearables. Well established capabilities in clothing, watches, rings, smart insoles etc. include capabilities for tracking and analysing: footsteps (pedometers), heart rate/pulse, temperature, tread patterns/gait. There are devices for looking at blood flow, but these can be easily fooled.

The latest announcements extending the commercially available repetoire to include:

• Omron's forthcoming Heartguide which promises to deliver accurate blood pressure monitoring (countering reports that many smart watches are innacurate);

• Fitbit's hint that it will be delivering blood sugar monitoring technology.

There's also a lot around relaxation and sleep improvement, which I have covered in a previous article.

Treatment
Increasingly, medecine is beginning to adopt devices which are not just wearable but implantable. These devices not only monitor conditions but can deliver therapy, usually via drugs. However the most dramatic is probably the system used for epilepsy, Resposive Neuro Stimulation or RNS. This is placed within the skull and mnitors EEG signals, an electrode is placed on or in the brain at the area where seizures normally occur. This recognises patterns leading to an attack and delivers electrical neuro stimulation signals to dampen down any attack.

Mental Capabilities

There are a few interesting niche applications such as Brainco's  application for monitoring student's focus during lessons and study (to provide feedback for self improvement) and Foc.us's brain stimulation device for improving computer gamers' reaction times.

Thought Reading

It's well known that Elon Musk and Facebook rivals are looking at technologies for reading thoughts. Though at present the most accessible device is AlterEgo - a wearable device which can read words that users are thinking about produce by MIT as a research demonstrator.

An interesting article on brain controlled gadgets can also be read at Hongkiat's site.

Cyborg Extensions

Additionally, whilst the military experiment with power assisted exoskeletons for combat soldiers, there are any number of devices now being used as prostheses to replace limbs or to by-pass problems such as severed spinal cords to convey nerve impulses along broken nerve pathways.

Lockheed Human Universal Load Carrier (HULC) exoskeleton

Call To Arms

The logical conclusion is that point applications will be replaced by suites of applications, so a common architecture and interoperability is needed. Additionally, there are potential risks with some of the technologies proposed, especially if they are used by operators of high capital plant, equipment or transport. Safeguards are also needed to avoid unintended self harm from adoption. 

So before we blunder too far down this path, we need to do something to address the ethical framework for deployment and an industry certification scheme for security and personal risk mitigation.

Culture Shows Up Again as the Thing Driving Agility

Forbes Insights and the Scrum Alliance have got together to publish a recent report on Organisational Agility, drawn from interviews with over 1,000 C-suite executives from around the globe.

A key theme which runs through the whole report is how important Culture is to Organisational Agility. (Something which I emphasised in "The Way of DAU"). Additionally, there are some compelling findings about the benefits of organisational agility. Over 50% of respondents identified benefits in the areas of:

• Time to Market
• Speed of Innovation
• Employee Morale
• Ability to Attract Talent
• Competitiveness
• Financial Results
• Ability to Manage Across Geographies

To re-inforce these findings, the report focuses on the performance of leading Agile Organisations and Laggard Organisations. Whilst they represent similar proportions of the overall survey population (16% and 19% respectively), twice as many Leader Organisations enjoy annual growth of over 20% as Laggards do.

In all probability, the CxO community that the authors consulted, probably included a pool of organisation most interested in Agility, as an earlier report by McKinsey suggested that only 4% of organisations have completed an organisation wide Agile transformation.

The report looked at a number of things, including whether organisational agility was End-to-End or siloed in functions. Based on the opinions of the respondents, it appears that Operations and Technical Functions tend to be the most Agile (79% and 75% respectively), followed by the usual suspects in Sales and Marketing. Interestingly enough, Finance achieved a credible 64% vote of confidence, but HR was amongst the laggards with only 56% of respondents considering it an agile function. Considering that HR is often thought of as the "Guardian of Culture" this is a worrying gulf and should be a wake up call to HR to re-vitalise its mission.

One area that I would have liked more analysis on, was whether Leading Agile organisations already had positive innovative and collaborative cultures before they embraced Agile or had to focus on it as part of Agile Adoption.

Anyway, the take away is that all CxOs, irrespective of function, need to work on fostering the right culture.

Digital Sleep Tech Proliferates

We spend almost a third of our lives sleeping, yet we are still amazingly ignorant about sleep itself. We know though, that modern living has disrupted our whole approach to natural sleep and that electric lighting is so prevalent, that not only do we not align ourselves with the natural patterns of going to sleep soon after darkness falls and rising with first light, but that we live in a "light polluted" environment which increasingly makes it difficult to go to sleep.

As someone who used to travel a lot for business, I hated trying to sleep in hotels. Not only was I in an unfamiliar bed, but hotels are often quite noisy at might and modern hotel rooms are full of electronic gadgets with LED lights which glow in the dark. I used to lay towels over the crack at the bottom of the door and turn everything I could off at the wall or place room service menus in front of the offending lights. I also tried a sleep mask, to limited effect. so it was interesting to see recent research which suggests that one brain hemisphere usually stays active all night when someone sleeps in an unfamiliar place. This effect has been described as akin to having a neurological night watch.

More interestingly, scientists have also re-discovered the fact that people used to sleep naturally in segmented sleep patterns, usually of two stretches of about four hours each. Roger Ekirch published a book in 2001 documenting over 500 literary references to first and second phases of sleep at night. A pattern which appears to have begun to be disrupted in the late 18th century as growing affluence and changing technology gradually eliminated our natural sleep patterns.

People tend to worry about their appearance if they don't sleep well, as this causes unsightly dark rings and bags under the eyes. However there are more serious physiological effects. Recently, scientists have begun to link poor sleep to obesity, heart disease and diabetes, as well as a host of other side effects such as grumpiness and having a low sex drive. Also, numerous studies have shown that poor sleep can affect driving ability as much as alcohol consumption. Working night shift is also considered a factor that can cause factor according to the World Health Organisation and studies have shown that nurses who work extended periods of night shifts, tend to die prematurely.

So it is interesting to see what is happening in the Wearable Technology space to help people improve their sleep, as several interesting devices have come to market in the last year. These devices contrast with others such as muse from interaXon which is focused on relaxation and meditation and aim to improve sleep quality.

Insomni Light - This is perhaps the simplest device on the market. Basically, sleep scientists tend to talk about 4 different states characterised by brainwave activity. The Insomni-Light sleep mask uses LED lights to relax the user, which it claims will help take your brainwaves into the Delta state associated with deep restorative sleep. At present this is just about to go on sale.

Cereve Sleep System from ebb - This basically uses a head band  on the forehead to cool your head (and brain). A bedside unit supplies cool liquid to the head band and maintains it at the required temperature. Ebbs site claims that 80% of users find that this improves the quality of their sleep. The site also claims that this is FDA cleared for safety and effectiveness.

Dream - from Rythm -  this is a device that I personally use and have written about before. It is a headband which helps you get off to sleep by using several different strategies: playing soothing sounds, helping you time your breathing to encourage sleep, or meditation to break agitated thought patterns. It also monitors your sleep and, whilst you are in deep sleep, it plays you "pink noise" to improve the quality of deep sleep. It will also bring you gradually awake by playing gentle noise during light sleep around the time your alarm is about to go off. It is claimed to improve deep sleep quality by up to 30%. My experience is that it improves over time and that I average just over a 20% improvement per night, although his varies considerably from night to night; on my best night ever, I got an 80% improvement.

The information that it provides is useful feedback and I have learnt a lot about my sleep from it, as yes, I am sad enough to plot it out on graphs using a spreadsheet. It seems that typically I spend 20 to 40 minutes per night in Deep Sleep. Although on one memorable night I achieved 119 minutes of Deep Sleep. I also tend to spend about 80 to 120 minutes per night in REM Sleep (the state usually associated with dreaming). Over the period that I have used it (about 8 weeks) the amount of Deep Sleep that I get every night has increased by around 5 minutes which is a lot when compared with a typical 20 to 40 minute period. My REM sleep has also increased by about 15 minutes, which again is a significant percentage increase, .

The period that I actually spend asleep has not changed significantly, at not quite 15 minutes per night, compared with a typical night's sleep of 6 hours twenty minutes (or 380 minutes) or under 5%. So the material improvements have been in quality rather than quantity. As REM and Deep Sleep are both considered beneficial. This is witnessed by the fact that I feel less tired and have lost the deep circles under my eyes which were there previously.

NuCalm - ReNu headset - This is part of an overall system utilising suplements, electrodes, the headset and a sleep mask. The electrodes provide microcurrent stimulation in the form of beta and delta waves associated with REM and Deep Sleep, and the headset provides sounds (which ReNu calls neuroacoustics) to relax the mind, deal with stress and assist with sleep.

Although this is a very complete system, it is not designed like the others specifically for sleep, so may be a bit clunky for people trying to just improve their sleep. 

Thynk Relax Pro - This is a device which you attach tot he back of your neck. It uses electrical neck stimulation to help you relax and improve sleep.

Common to all of these devices, is the need to use them over a period of time to achieve noticable improvements. As these are all promising 1st generation products, I would expect that we shall see evolution and enhancement. There may be further crossover to integrate all approches: light, sound, cooling and electrical stimulation. There may be further features to work on sound cancellation, as none of the products considers the impact of ambient noise on sleep. Additionally, I would expect improvements in form factors to improve sleep comfort and avoid headsets falling off during the night. Furthermore, feedback and use of machine learning is bound to improve overall effectiveness and the tailoring of device performance to individual users. However, I think it is safe to say that a New Dawn on sleep improvement and self help has arrived.

N.B. all pictures were copied from the manufacturers publicly released pictures on various websites and the copy right does not belong to me. So please respect these rights if you intend copying and re-using for any commercial purpose.

Artificial Intelligence and Our 5 Senses

Artificial Intelligence (AI) is very much the thing of the moment. A lot of new enterprise models appear to be built on a combination of AI, IoT and Big Data to collect and process massive amounts of data and to apply human like skills of recognition and decision making with a level of consistency, speed and volume that was previously unattainable with conventional processes or systems. This leads to greater insight, improved performance, better use of scarce skills and consequently other benefits such as improved customer experience, better security and higher cost efficiency. It also means that some tasks which would never have been practicable before are readily delivered via automation.

However when we look at what a human can do, AI capabilities are still lacking. The human capability to use our 5 senses, think abstractly, innovate and test hypotheses, to develop new learning are still a challenge to AI.

Just focusing on the 5 senses: Sight, Hearing, Touch, Smell and Temperature, AI's progress is quite patchy.

In the past 30 years or so, AI's ability to deal with vision and speech has progressed from a miserable score of  about 1 to 2 out of 5, to a 3 to 3 and a half out of 5. Handwriting recognition works well with typed characters, but still has a significant error rate with hand writing. Face recognition systems work quite well with caucasian faces but apparently struggle to deal with black african faces. It is not clear to me  whether the latter is to do with poor training (i.e. not been given enough sample data for adequate deep learning), fundamental flaws in the assumptions made when designing the systems to recognise features or some problems with technical measurement of contrasts and camera sensitivity across the visual spectrum. Whatever the problems, error rates are still quite high.

Temperature is quite easy with thermo-couples and can be engineered to deal with temperatures that people could not with stand. So high marks of 5 out of 5 are to be expected.

Touch has been a major area of research ever since robotics became a hot topic in the late seventies. Most of the work so far has focused on sensing around grip, so that a robot could pick up an egg or some other delicate object without crushing it. But I have not seen anywhere the type of sensing that could differentiate between the touch of skin, rubber, silk, cotton and wool. So this definitely languishing in 2 out of 5 territory.

Smell has barely been touched. However some work is suggesting that techniques for smell processing, which mimic natural biological processes could be invaluable in extending AI capabilities to deal with situations where learning data is limited, ambiguous or masked with other "noise". Smell has potentially many applications in medecine, agriculture and food processing. The techniques however, may be useful for Autonomous Unmanned Vehicles which often have to deal with unforeseen situations or noisy environments.

So there still a long way to go for AI to reach science fiction like capabilities. Conquering the 5 senses represents the first step. The question is, how long will this take and will all humans be machine augmented, by the time we get there?

Should Your Next Startup be in Sao Paulo

A decade ago, everyone was waxing lyrically in the received wisdom of the BRIC phenomena. The 4 fast growing economies of Brazil, Russia, India and China. After a while I started to notice that Brazil was sending representatives to IT conferences and other fora to promote Brazil's tech industry.

So why is this important? Well Sao Paolo is known as the manufacturing centre of South America and Brazil with a population of over 200 million is considered the 8th largest economy in the world. Against this ranking, Brazil's IT industry representatives present Brazil as having the 7th Largest IT industry in the world. So it should be important.

This leads me to the question of why don't we hear more about Brazilian Startups and why isn't there a stampeded of people from the UK and Europe trying to invest in or partner with Brazilian startups? So I decided to  enquire further.

It appears that investment in Brazilian startups is healthy. A Financial Times article, places Sao Paolo 11th in the world of any city attracting startup funding rounds greater than $100M. This places it behind London, but ahead of Tokyo, Paris, Seoul, Austin, Seatle, Tel Aviv and Mumbai inter alia. So Brazil's reputation for high costs and bureaucracy is not putting anyone off (a lesson for Brexit remoaners perhaps).

So why don't we hear more of this in the UK. One answer could be that Brazilians are notoriously conservative and don't like to do business with people with whom they do not have a long relationship. Additionally, they like quid pro quo partnerships, so want you to bring something more to the table than just cash. The other may be that traditionally they are quite insular in outlook and compare themselves with the United States only. So startups like Pipefy and Psafe have looked to the US rather than Europe. 

I think it's time that UK entrepreneurs started to explore the opportunities available in Brazil, as there is a huge talent pool there and loads of innovation. Personally, I think it's time to do a duolingo course on portuguese.

Are Businesses Still Missing the Point About Digital Transformation?

The other night I was talking to the Head of Product Management for a company who run several Dating Site brands (facing into differnet market sectors: young, old, gay etc. and across over 50 countries). He was really keen on the term "Digital As Usual" (DAU), because it encapsulates the culture and thinking needed to sustain a Digital Business Model.

So I was quite disappointed to see Raconteur's recent article on Digital Transformation, which shows just how badly many companies are still addressing their move to a Digital Business model. The usual collection of issues showed up: It's an IT problem, its a siloed CDO problem etc. Though, to some extent I think that the authors and experts quoted in the article got it wrong too as they keep talking about Digital Transformation, implying that you get there in a relatively short period of time. The whole point is that you never get there. It is a continuous journey and requires the whole business to act as a team who enjoy voyaging. So instead of transformation programmes, they should think Star Ship Enterprise and understand that what they are really pursuing is organisational excellence and customer delight. Getting that right will move the dial on meaningful organisational measures of performance and deliver revenues and profits (or whatever relevant Value that applies to their organisation) as a byproduct of operating a successful Digital Business Model.

What was interesting in the article was the criticism of organisations who think about digital as just being IT. Whilst in Asia Pacific, a recent survey looked at Digital and IT Transformation. Companies in this region belivve that they are leading the world in digital transformation. Its finding was that where businesses had addressed IT Transformation, they were over 39 times more likely to make better faster decisions than competitors and 13 times more likely to complete application deployments ahead of time, whilst running their critical applications at less than half the cost of competitors (who had not transformed). This is despite the fact that IT leaders are less likely to be involved in critical business decisions that in other parts of the world.

So, IT and lean capabilities are essential enablers, but the senior management team needs to work as a team and not a series of siloed prima donnas. However it is difficult to find anyone who works maturely across all aspects of digitalisation. The Head of Product Management that I talked to (above) freely admitted that his organisation, although growing successfully, does not put enough attention into data quality and avoiding technical debt. And the Strategic Busines  KPIs that they work to are not perhaps the best in optimising customer experience. However, they were very storng on identifying tangible market opportunities, product thinking and lean delivery, whilst enjoying a positive collaborative and innovative culture. They recognised that innovation does sometimes mean learning from failure, although they don't have a strict measure on how much failure is acceptable. But they were doing enought to prosper and continue to learn and grow on their journey. And that is the point.

Aligning Digital Exploitation with Operational Capability

All Enterprises Are Not the Same

One of the tenets of Digital As Usual (DAU) is that most businesses are not pure play digital organisations. In almost all cases there are operations and activities which are essential to either fulfilling service or delivering a product which need to be managed as well. The Digital Adoption Framework assumes an Industry Categorisation Model as illustrated below.

The Industry Categorisation Model identifies 5 Categories along a continuum of Industry Product Nature. At one end of the continuum are “pure play” digital organisations, whose products are Information and Content based. These consist of Market Platforms like eBay and Compare the Markets.com who provide a platform, through which other organisations and people sell their goods and services, as well as Publishers and Providers of Content who provide videos, e-books, podcasts, news, music etc. At the other end are Extractor and Grower type businesses, such as coal mines and cocoa growers who provide natural unprocessed products. Off course not all businesses fall neatly into just one category. A major energy company such as Shell or Exon may straddle several categories along an Upstream (exploration, drilling and extraction) to Downstream (transport, refining and distribution) activities.

So why is this important when thinking about digital businesses? Well each different type of business operates in different ways, has a different level of dependency on capital assets and has different opportunities for exploiting digital technology to augment its business model. Additionally, the whole concept of Lean Delivery via Design Thinking, Agile Delivery and DevOps may have different opportunities and constraints as well as nature of delivery in each category.

Some Examples of Exploitation

The diagram below looks at the potential for exploiting Artificial Intelligence (AI) technologies according to Industry Category.

The “X”s in the table represent significant opportunity for exploitation against a generic type of Use Case. So for example AI technologies (machine learning, visual recognition, natural language etc.) can be used to provide insight and learning in every type of organisation, but there is very little opportunity for them to add to “customer experience” in say mining or farming. Again there is huge potential to build AI capabilities into consumer products, e.g. Alexa in Amazon’s Echo, but there is little opportunity to enhance a product such as iron ore or tree trunks produced from a Natural Product Extractor or a Grower. 

Alternatively for IoT, see diagram below, the opportunities are pretty limited for an Information publisher, but there are many areas where a farmer could use it to track livestock and monitor soil conditions and crop conditions, as well as control assets such as vehicles and trailer equipment.

This moves us onto exploiting iterative approaches within an organisation. The other night I was talking to someone from a major pharmaceutical company. Drugs take years of research to identify promising candidates for a problem and to test for efficacy and safety, as well as meet regulatory demands. There is little opportunity to exploit Iteration in this type of product development. But for the company overall, there are opportunities around internal processes and with Agile Marketing.

Agile Marketing is a growing area of adoption within industry and works well for consumer driven businesses. At its core is the use of small integrated product teams which focus on market research, product promotion, delivery of marketing and promotional materials, advertising and the information analysis systems used to support marketing data analysis. These teams tend to work in multiple sprints testing out marketing promotion hypotheses and rapidly identifying which approaches produce optimal results, to improve overall revenues. 

Iterative development also its quite different for delivering an oil tanker or a film, to the development used to support a consumer service. In the case of the former, iterative design, development and continuous testing techniques are used to deliver a single integrated complex product over a period spanning many months if not years. In the latter they are used not just to deliver the product, but to continuously keep it fresh, up to date and moving ahead of competition that is playing catch up.

So it's important not to adopt a one sized fits all approach, but to really get down to what can work for your organisation. This is part of what I talk about in my book.