Another Week In AI & Machine Learning

Driveless

So the hot news this week is that people keep crashing into driverless cars. Wired magazine discusses the issue that the way in which the current generation of prototypes being driven on America's roads are experiencing a high level of accidents, apparently because they don't behave is the same way that ones driven by humans do. 86% of collisions in California this year have been due to being rearended or side wiped! Autonomous cars appear to be over cautious and annoy human drivers, not only by stopping unexpectedly but also because they are over compliant with the letter of the law in interpreting situations. So why don't they have signs on the car, just like a learner does to warn drivers that they need to keep clear? It's a pretty similar situation and people do tend to steer as clear as practicable from learners who they know to be unpredictable.

AWS Capability Continues to Grow

AWS also held its AWS Innovate Online Conference. In his "state of the nation" talk, Boaz Ziniman outline current capabilities available Off the Cloud (OTC) rather than Off the Shelf (OTS). Basically, AWS still provides impressive capabilities which allow a developer, data scientist or organisation to just start using AI and scale rapidly. Though they have been adding to this capability with impressively powerful capabilities around visual recognition and voice processing as well as bundled environments which are pretty much deploy and go. this is very liberating, because it provides a readily used Pay as You Go (PAYG) capability, which avoids much of the traditional issues of continuously having to research, select, implement, integrate and tune the suite of tools and infrastructure needed, as well as continuously returning to CAPEX approval and purchase processes for scaling to deal with increasing volumes of performance issues. 

There's a caveat though. Some of the capabilities, e.g. recognising a face in a crowd, which may be useful for security solutions, might also be used as the tools for enforcing a police state or merciless pursuit by paparazzi. Enabling such massive AI at scale, will to some extent be another nail in the coffin of personal privacy.

Early Adopters Surge Ahead

Finally, MIT Sloan and Boston Consulting Group released a report "Artificial Intelligence in Business Gets Real" which surveyed the application of AI in business across the globe. Whilst there were the usual scare stories about China being ahead of the West in adoption and that the gap between pioneers and laggards is growing larger there were some interesting points. The Chinese are deploying to meet efficiency and cost needs. Everyone else is deploying, because AI helps them do more and there was a message that AI will not replace jobs, but it will change the nature of work and the skills needed.

The second key message, was to experiment with something simple and demonstrate the benefits, because business leaders who had seen AI in practice, get it and are prepared to invest more, to the point that AI is almost addictive in the way in which it influences investment appetite once a business has tried it.

The final message was really around AI at scale. If you are planning on building your  future business model around AI, then you need to plan, prioritise long term investments and to get effective data governance in place. This does not just mean establishing once source of the truth, with valid, complete and coherent data. It also means having a good handle on version control. Since, if multiple applications of AI depend on the same data, it needs to be synchronised to avoid unintended problems. So Lean Data practices are fundamental to adopting AI at scale.

Finally, it was interesting to hear how paranoid Chinese companies, adopting AI, are about cyber security. Protecting their data from competitors and the continuing availability of data and AI based solutions becomes increasingly important once a company's business model has evolved to adopt AI. So the principle "Cherish your Data" (see The Way of DAU) is key to successful exploitation.

Conclusion

Human issues, ethics and common sense remain central to AI adoption, an Agile mindset encourages adoption and Data Governance is a key enabler.

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.

Applying Change Management to Change Management in The Digital Era

Change management programmes have a bad image. Ever since Kotter pointed out their massive failure rate (70% to 80% depending upon whichever source you consult) and identified his 8 principles for change management, little appears to have changed.

Leaders still don't understand their role in change management; over long top down programmes get foisted on the business; if the programme gets There, There has already changed when it arrives and the world has moved on. In the process organisations often she up to 20% of their talent and the whole enterprise can get distracted from its day job, hitting organisational performance badly. So the only remedy becomes, launching another change programme.

Change is fundamental to Digital Transformations since not only is a business trying to adopt new technologies to support innovation, it also has to change its business model, organisation and skills to do this. So how do businesses cope? A great quote is by George Westerman of MIT's Sloan Business School “When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.”

So what's new? Gartner reckons that 66% of Success Factors are related to talent. Yet the Scrum Alliances recent survey of global CxOs indicates that HR is one of the least Agile functions in most businesses. So its time for leaders to be leaders and work with both each other and their teams. As there's a fundamental signal coming from so many sources that Culture is the over riding discriminator in success. Getting the balance right between direction setting and team driven empowerment and innovation is fundamental.

Secondly, whilst having a clear vision of what the destination looks like, the trend is to break the journey down and only attempt the first few steps before re-calibrating. As the famous Chinese proverb quoted in Chairman Mao's little red book says, "Even the Journey of a Thousand Miles starts with a few small steps". 

Looking for small wins and business along the path of massive change, allows for experimentation, learning and course correction. So that a business navigates to a desirable destination and does not just follow a mirage.

Finally there is a heavier trend towards Data and Insight. Many innovation efforts rely heavily on data to validate (or otherwise) hypotheses and experiments, as well as to provide new insight. This has to be set against deep industry knowledge and intuition. Change involves both art and science to deliver effectively.

Business Leaders need to understand that Innovation and transformation means doing things which have not been done before (not just the same old things faster and better). So they need to be enquiring about the art of the possible, challenging about what really is the nature of value and how actions align with them, and liberating in the way that they encourage their teams to be part of the solution (rather than the unwilling victims of good intentions).

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.

Way of DAU Release 2

Release 2 of the Way of DAU has been released via Amazon and is available as a printed version here  and as an electronic version here. 

This takes into account feedback received for the MVP version and is now in a handier physical paper format.

I would like to thank everyone who took the time to provide comments and feedback.

The LinkedIn discussion forum can be found here if anyone has any constructive comments, suggestions or criticisms to help refine the next release of the book.

The Perils of the Digital Strategy Anti-Pattern

I started writing the "Way of DAU" because of my experience with a few CxO individuals. The problem was that they saw Digital Adoption of Big Data and IoT technologies as a sort of business elixir which would magically provide them with new insight and enable them to change their business models.

Increasingly these individuals became more impatient as they expeced IT to magically "deliver the goods" and transform their businesses. They talked far and wide at business forums and in the press of how transformational digital technologies are and they decided to develop big enompassing digital strategies. The trouble was, they never actually articulated where the value lay or what the actual value proposition was. So it was difficult to understand from a technological perspective, where to start with credible opportunities and business cases which might succeed. Trying to separate genuine opportunity (which justified the investment) from fluff was impossible.

Two years later they were still waiting to implement anything tangible and still talking, whilst other companies were starting to pass them by. Little wonder then that Thomas Davenport and George Westerman published an article in HBR on why Digital Strategies Fail. Basically, companies like GE have gone full tilt at implementing digital business models and capabilities without stopping to identify and prioritise value, and expecting to get everything right first time.

Unfortunately this is the problem with innovation. It's difficult to get things right at the first attempt. Just look at Dyson, it took him thousands of experiements and years of development to crack the physics behind the bagless vaccum cleaner and he had the advantage of knowing what problem he wanted to crack. When trying to introduce ground breaking new digital products, there's a lot needed to understand what the real problem is before you try to optimise the solution. Then, as a former CEO of Intel said, you may still need to pivot in the market place to find where the real sweet spot is and fulfill the dreem of market disruption.

George Westerman has even gone so far as to say in a new article in the MIT Sloan Business Review that your business does not need a Digital Strategy, it just needs a business strategy which takes cognisance of Digital Opportunities. He talks about Building Leadership Capability, Not Abandoning Digital Transformation to IT, Avoiding Siloed Thinking and Not Pushing the Envelope too Far.

These are some good common sense starting points and pre-requisities for focused action. Let's hope that the C-suite start to listen.

Digital Strategy Burps

McKinsey claims that many organisations are making serious mistakes with Digital Strategies.

Putting aside thos companies whose strategies are just a wish list of possible opportunities, McKinsey believes that typically there are 5 issues with enterprise Digital Transformation Strategies:

1. Unclear definitions;
2. Misunderstanding the changing economics that digital is driving;
3. Overlooking eco-systems;
4. Focusing on familiar competitive threats, rather than emerging ones;
5. Failing to understand that it's not just existing business that needs to be digitised - and not discarded - but that new businesses need to be invented, too.

 Though they note that in some industries, digital is accentuating the gap between winners and losers, with small numbers of winners grabbing huge market share and squeezing out the losers, whilst they also change the nature of the market.

Though more pragmatically, at a recent Gartner conference four CIOs spoke about the practicalities and emphasised focusing customer and people outcomes and experiences, using demonstrators to illustrate cross fiunctional opportunities and experimentation to build new business opportunities. Here too there was a theme of building on the existing legacy capabilities to blend the existing with new opportunities.

Analysis by the Boston Consulting Group reinforces some more orthodox lessons:

1. Harness the Power of Data
2. Redefine Your Customer's Journey
3. Build Digital Capability Through the Whole Organisation
4. Transform Governance and Explore Collaborative Ways of Working
5. Re-inforce Innovation Capabilities

 Broadly speaking this all fits with the DAF framework and principles contained within the Way of DAU.

Are You as a CxO The Real Culprit?

Digital Impacts on Business

In a recent article in the Sloan Management Review, it was mentioned that 87% of executives think that Digital will affect their market place. Yet out of the 75% who thought that their enterprises are adequately prepared, only around 10% saw it as a potential threat to their business.

This is only one symptom of the many aspects of CxO behaviour which are affecting the success of organisations which want to adopt a digital business model. Overall, there is often a lack of realisation that the CxOs themselves are inadvertently sabotaging their organisations' efforts.

Executive Behaviour Can be a Problem

In many cases, in the same manner that many executives don't understand what it means to be a project sponsor, CxOs have failed to actually engage with the issue. They don't seem to think that they should spend the time to get involved in deep market analysis and identify real game changing opportunities. They just want to automate yesterday with some sexier technology.

Additionally, they don't get the need for acting as a joined up team or building a positive culture which supports experimentation and innovation. In fact, many executive teams don't seem to understand that innovation means doing something that no one else has done before, so there are bound to be a few issues along the way as a product team discovers what works and what does not.

David Snowdon provided a great framework with the Cynefin model to explain what is involved with emerging practice and chaotic conditions.

This is why the DAF (Digital Adoption Framework) places significant emphasis on cultural change as promoted in The Way of DAU. Culture is a known inhibitor to strategy implementation, as witnessed by the well known quote that Culture Eats Strategy for Breakfast. Culture change starts with the C-Suite and ripples down. So any CxO looking for digital success, should be asking whether he or she needs to reach out work with C-suite peers to build a better team. Otherwise, failure beckons.

Executives Need To Learn How to Promote Innovation

On another tack however, a research based article on innovation and executive behaviour published in the Harvard Business Review, outlines some personal behaviour characteristics of entrepreneurial CEOs and other top executives: 

• associating, 
• questioning, 
• observing, 
• experimenting, 
• networking.

Their observation was that CEOs in successfully innovative companies take more ownership of innovation, look outwards and provide leadership to the innovation process and get personally involved.

Digital's Impact on the C-Suite

One of the interesting things about Digital Adoption and Transformation is the way in which it is impacting roles in the C-suite.

In some early adopters, the default leader for digital transformation was the CMO, as digital marketing initiatives picked up and marketing ran away with the ball.

In second wave adoption there has been a bit of a split between whether a specially appointed person, the Chief Digital Officer, should manage the business's strategic response and run all things digital. In others they have handed this to the CIO. Though occasionally the CEO has decided that this is too important and grabbed the reins him/her-self. The longer term trend does appear to gradually hand this back to IT and CIO (as discussed in previous posts).

However, there is a growing realisation, as discussed in a recent Forbes article, and in my book that culture is crucial to success. Culture needs to be aligned to a number of positives:

• Collaborative working across functional siloes
• Product and value focus
• Opex Thinking
• Tolerance of Experimentation and alignment of Risk Appetite with Value and Learning from Failure/Experience
• Customer Focus

Apparently, this is now leading to the situation where enterprises are beginning to appoint Chief Culture Officers.

Additionally, some are also appointing Chief Customer Experience Officers to reinforce the idea that the key value proposition of Digital is Excellent Customer Experience. Although in design led organisations this may be Chief Design Officers who are also interested in the customer engagement by design thinking.

One of the questions that we have to ask is how will this mature? at the end of the 19th Century as electricity started to be adopted, some organisations flirted briefly with Chief Electricity Officer roles, but they did not last long.

Will Chief Culture Officers be subsumed into Chief HR Office roles and will this change the face of HR for the better? will customer experience revert to the Chief Marketing Officer, or will CIOs hybridise and pick up aspects of these roles as part of the CDO element of their job as they delegate more technical aspects to CTOs. Or will CTOs have to become more human?

Whatever happens, CxOs will all have to rethink what their core attributes and operating models should be. Digital required disciplined team play, as well as skills and flair.