Amy Ingram, the persona of the x.ai virtual assistant — which is a program — got asked out every month last year.
Originally posted on stoweboyd.com on 25 February 2016.
Kamis, 25 Februari 2016
Some stats after a year of x.ai fifianahutapea.blogspot.com
Rabu, 24 Februari 2016
Guest Post: The future of enterprise software is abundance fifianahutapea.blogspot.com
Fragmentation Continues, and Software Budgets Growing Rapidly
We’ve seen a massive change in the enterprise software market in the last dozen years and it can be described by four numbers (20, 10, 12, and 4).
Here is the summary of how the landscape has changed in the last 10 years:
- 20x increase in software vendors
- 10x the number of software products companies buy
- 12x the number of internal “buyers” inside companies
- 4x increase in budgets for software solutions
(Note: This is from hundreds of surveys Siftery did of many of the largest software buyers. Siftery helps companies discover enterprise software they should be using. Disclosure: I am an investor and board chairman at Siftery).
The high-level macro is that the world of software is getting way more crowded and way more complex.
Buying software is daunting … but it is also REALLY impactful. The right software gives you a competitive edge. Software isn’t just eating the world … it can help you eat your competitors for brunch. Choosing the right vendors is really important for businesses to succeed … so we would expect companies to be spending much more time selecting vendors … and they have.
The Four Numbers: 20, 10, 12, and 4
In the last dozen years, we have seen a software explosion. This is mainly due to software being easier to buy, integrate, deploy, and use because it no longer needs to be hosted on premises. This software is usually lumped together as SaaS (or DaaS or even some other name) … but the main take-away is that one does not need a really expensive on-premises integration and therefore it can be tried and used quickly and with less risk.
When we talk about “software”, we’re not just talking about code you run inside your corporate firewall. And we’re not just talking about traditional SaaS products (like Salesforce, Workday, etc.) either. We’re also talking about data services your company consumes (like Bloomberg and Acxiom). And services that help market your business (like ad networks and Google search spend). And subscriptions you use to help your business (like LinkedIn and Glassdoor).
20: The number of software vendors has increased 20x in just ten years
That’s right. There are twenty times the number of software vendors that there were just ten years ago. There are a lot of causes of this rapid increase:
- As stated earlier, it is much easier to buy software, so there is more software to buy.
- The really large software companies have embarked on a strategy of growing their product and feature set by acquiring companies (or sometimes partnering) rather than developing these features and products in-house.
- Seeing this opportunity, venture capital firms have poured tens of billions of dollars funding software companies.
- It is now much cheaper to start a software company because of things like distributed computing and the rise of software companies that help other software companies.
10: The number of software products (unique vendors) a company buys has increased 10x in the last ten years
This is an even crazier statistic than the first macro trend. Take the average large retailer — ten years ago they had maybe 40 software vendors across their organization … and today they will have 400. One large retailer polled by Siftery has over 2,000 software vendors!
The right software stack gives your company a competitive advantage. And because it is so much easier to buy today (and there are more people making buying decisions), companies are becoming increasingly open to buying from a large number of vendors.
The major beneficiary of this trend has been start-ups … they can get a beachhead in large companies much faster than they could in the past.
Of course, this trend is happening in some industries faster than others. Retailers are super fast adopters — probably because their business is so competitive and the market leaders there (Amazon, Walmart, etc.) are filled with incredibly smart technologists.
Companies that have many regulatory requirements to keep their data on premises (like financial institutions and healthcare) have fewer software vendors … but even there we have seen a massive increase in the diversity of vendors.
12: The number of internal buyers has increased 12x in the last ten years
The number of people buying software (or influencing the buying) of software in a company has grown dramatically. Almost every professional in a company is now a buyer. Software engineer? Buyer. Salesperson? Buyer. HR Manager? Buyer. Finance person? Buyer. Lawyer? Buyer. Marketing? Definitely a buyer. In 2012, Corporate Executive Board did a study that found buyers did “60% of a typical purchasing decision—researching solutions, ranking options, setting requirements, benchmarking pricing, and so on—before even having a conversation with a supplier.”
In fact, only 12% of the users of Siftery are in traditional IT. The other 88% care just as deeply about the software for their organization.
And it is easier than ever to buy. Companies like New Relic and Sendbloom have built their company selling one seat at a time to an organization and then using their internal advocates to get larger deals. Freemium software like Slack, Glassdoor, and Cloudflare make it easy to try. Freemium or low cost products mean less red tape and less need for budget approvals in the initial stages of adoption.
Engineers, lawyers, salespeople, finance, HR, marketers, etc. that can pick and implement software are the ones rewarded with promotions and bonuses. Professionals that do not develop the core skill of picking the right software vendors will find much more limited career paths.
4: The spend on software has increased 4x in ten years
A 4x spend is an astonishingly large increase — and it is because software is easier to buy and it is becoming more and more powerful. Of course, since the number of vendors a company has increased 10x, the dollars per vendor has decreased dramatically in the last ten years. This trend might be worrisome for the giant enterprise software companies but it is really good news for software companies that are innovating and are on offense.
One thing to note is that during the last ten years, these same companies that are spending so much more on software have not significantly increased the number of people they employ. In fact, many companies have FEWER employers today than they did ten years ago (even though revenue has increased). The take-away is that companies are choosing to spend on software INSTEAD of people. This may or may not be a good thing for the world … but it is happening and will likely continue to happen.
The fragmented world of software will continue
Most every macro data point on Siftery shows the trend of the last ten years will continue in the next ten. It’s easy to dismiss that this abundance and fragmentation is just part of a cycle that’ll eventually move towards consolidation. But if one digs a level deeper to look at the forces that created such a vast, fragmented and active product ecosystem, it becomes apparent that this isn’t a trend but a transformation. More business processes are automated now than ever before – run by software or reliant on it. In many cases, we see software talking to software, APIs talking to other APIs. As long as this data can be integrated well, there will be more software.
This means there will be even more software companies in the future than there are today. And buyers will be even more overwhelmed and will need help deciding what to buy, how to buy, how to integrate, and how to best use the software.
I invested in Siftery (www.Siftery.com) because I love their unique way to help discover software. Siftery believes the products you should use is dependent on the products that you do use.
About Auren Hoffman:
Auren Hoffman is the former CEO and cofounder of LiveRamp (sold to Acxiom) — the largest middleware provider in marketing technology. He is Chairman of Siftery – using data to help companies better buy enterprise software. He previously served on the board of BrightRoll (acquired by Yahoo).
He is the founder of the Dialog Retreat and investor in over 65 active technology companies (https://siftery.com/groups/aurens-portfolio).
Auren holds a B.S.E. in Industrial Engineering and Operations Research from UC Berkeley. You can find him on Quora and Twitter (@auren).”
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Selasa, 23 Februari 2016
Sponsored post: The Game-changing Economics of Fractional Availability fifianahutapea.blogspot.com
The tech world is in many ways like a large city. While we spend most of our time in a few neighborhoods, it doesn’t really come as a surprise to encounter an old friend or colleague that you haven’t talked to in years, hanging out in your corner café. So I was not surprised to hear that my old friend Antony Brydon had started a new company with a compelling value proposition, called Directly, and that he and his head of marketing, Lynda Radosevich, thought I’d like to learn about it.
Antony Brydon
I met Antony when he was CEO of Visible Path, an innovative social startup, one that was working to build the work graph — through email analysis — in the ‘00s. Visible Path was acquired by Hoovers in 2008. Perhaps they were a bit ahead of the market, but that’s a sign that Brydon & Co are generally ahead of the power curve.
I was also not surprised that Directly’s value proposition is very, very smart: helping other companies scale their customer support capabilities by breaking out of what I think of as the skills versus wages snare (see figure 1).
The snare is this: as the necessary skill level for customer support increases, the wages that must be paid increase. This is a fundamental aspect of supply and demand.
figure 1 — The Skills v Wages Snare
But Antony and his partners have come up with a way to break the snare, and Directly is the platform on which that magic happens.
I recently interviewed Antony about Directly, and why the company is growing so quickly.
The Interview
Stowe Boyd: One thing I’d like you to do is tell the origin story. In every superhero comic strip, there’s the story that they tell about how Peter Parker got bitten by a radioactive spider, or Steve Jobs visiting PARC. So, what led to the founding of Directly?
Antony Brydon: It was not as dramatic as Peter Parker and the radioactive spider, but it was interesting. And it was interesting because the company founding and the initial inspiration were probably 15 years apart. Back before Visible Path, I worked in a call center for a few years: back in ’98. I worked for a venture firm which invested in Genesis, Aspect, and Aurum: a lot of the early call center players.
Call centers was an interesting beat, but it was a little depressing because the customers were very rarely happy with the service they were receiving. – Antony Brydon
For the better part of three years, that was my beat. And I was looking at a lot of Fortune 100 call center buyers to figure out what products they needed. Call centers was an interesting beat, but it was a little depressing because the customers were very rarely happy with the service they were receiving.
The agents in the call center were a downtrodden labor force: modern-day galley ships. The call center managers were doing the best they could, but often saw themselves as sort going to war with the tools they had. Under equipped and underserved. Very tactical.
Genesis had some incredible skill-based routing that I used in a project. It could actually connect a customer to an absolute perfect agent. But that capability wasn’t being used very broadly. There were a lot of reasons it wasn’t. Some of the call centers didn’t want to hire the truly skilled agents because it could cost more money.
SB: Right, and I bet they didn’t want to test people to gather all that data, either. That was expensive, too.
AB: Yes. They didn’t want to break their agents down into different pools based on skills levels because utilization would drop. If you had one homogeneous pool, you could give a call to anybody. If you had 10 skills-based pools, utilization fell through the floor, so the economics fell down. A great example of really great technology that didn’t get applied anywhere near the degree that it should because of the constraints in the business model. And that, entrepreneurially, was pretty depressing to watch.
My diagnosis was that the problem wasn’t the technology. The problem was the talent side of the equation, and how that talent was being managed. There was no amount of technology to fix it. When you’ve had very low skill folks being hired at very low wages, who are being pushed to handle 60, 80, 100 customers a day and sort of being churned out 12, 13 months later once they met the learning curve, well that invariably put a low ceiling on customer experience. A depressing trend, and that was the reason I made a conscientious move to stop working on it
That wasn’t the inspiration for Directly, per se, but that was my diagnosis at the time. That was the real problem. It made me very unexcited.
For the last kind of 15 years, whenever Jeff [Paterson, the co-founder and head of product at Directly] and I sold a company, we would come back to this problem that had bothered me a long time ago and just started hacking to see if we had any new approach or insight that we had that we could bring to bear on it.
SB: You’re saying the obvious thing was being blocked by the business model, which led low-skilled people to become more skilled, and then their higher wages would become unaffordable.
AB: Yes, absolutely. Skilled workers could have been created very quickly. So, if you had a Samsung Galaxy question that was routed to a Samsung Galaxy expert, and that person was doing a normal number of inquiries for the day and wouldn’t have the boot on the back of their neck to get off the phone in 6 minutes. But that was blocked by the economics of the business model, and that blocked the talent model.
We looked at this in 2001 after eMusic had just got acquired. We looked at it in 2008 after we sold Visible Path. When we came back to it in 2011, we had the benefit of seeing a lot of these on-demand companies coming up. We saw Lyft coming up. And Uber coming up. And Airbnb. And all of these companies taking advantage of a kind of fractional availability.
When we applied that to the old problem, we saw for the first time we saw the potential of pulling together people with much higher skill sets than would ever sit in a call center. And then making them available for small fractions of time. When their skill set really matched a customer’s problem, and at levels where they could really opt in and delight a customer. With that combination of the ability to get more talent than had existed before, and then also to render that talent. Making the business model, the economics of it, work.
So that was the initial insight. That’s what started down that pathway quickly, building some quick primitive apps and starting testing that idea. It bore out very quickly.
We did some initial tests in kind of 6, 12 weeks of initial building. We got some very good signals back that we could attract very skilled folks and pair them with customers very efficiently and very quickly. It took a lot of work to actually develop the engines and all of the enterprise innovations. But those are the book ends. There was that insight in ’98 that no amount technology could fix broken talent model and a broken business model. Then there was that ‘aha’ in 2011 and 2012 that the on-demand piece would be a very elegant solution to this problem.
At that point in the interview, I started to sketch a 3D model in my journal, based on Antony’s use of the term ‘Fractional Availability’. In figure 1, the 2D model above, we saw the snare, the dead-end that Antony has described as an economic problem that technology couldn’t fix in 1998. But with the surge of interest in on demand platforms — like Uber, Lyft, and Airbnb — a new alternative appears.
An additional dimension appears, so that people with high skills can still be affordable, because they don’t have to be hired as full-time workers sitting in a call center. They can be paid only for the time that they are handling customer support requests, and they have gained their expertise at no expense to the company using their services on a part-time, on-demand basis. They’ve gained that skill as a power user, on their own time, for their own reasons.
Figure 2 — Fractional Availability
Here we see the 3D reality: it is possible to pay low ‘wages’ (perhaps ‘costs’ would be better) for highly-skilled customer support because of the wormhole that is fractional availability. (I think of it as something like the Guild Navigators in the Dune series, who can ‘fold space’ and travel ‘without moving’ from one star system to another light years away.)
So, if you take the 3D chart above and look at it end on — concealing the dimension of fractional availability, it would look like figure 3, below. Directly allows companies to shift the needle from high costs for high skills, by tapping into the game-changing economics of fractional availability.
Figure 3 — Back in Two Dimensions
Theories into Practice
In the next post in this series, I will dig into the specifics of how Directly has moved the needle at a specific customer’s call center operations, a case study based on the adoption of Directly at MobileIron. But behind that practical and tactical step-by-step adoption is the origin story of Antony’s frustration with call center economics in 1998, and the role that fractional availability is having on the world. Directly’s success has come from harnessing that theory, and making it do the heavy lifting.
Also, you might like to hear Antony and Jonathan Keane,
Director of Customer Service at Republic Wireless in a livecast on the topic: How To Deliver 2.9 Minute Response Times During A New Product Launch, Thursday, February 25 @ 11:00am PST/ 2:00pm EST.
Directly has sponsored this post, but the opinions are my own and don’t necessarily represent Directly’s positions or strategies.
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Sabtu, 20 Februari 2016
New Open Connectivity Foundation combines Open Interconnect Consortium and AllSeen Alliance fifianahutapea.blogspot.com
A new milestone in the maturation of the Internet of Things has been reached: two contending organizations — the Open Interconnect Consortium (backed by Intel and others), and the AllSeen Alliance (back by Qualcomm and others) are merging to form the Open Connectivity Foundation.
This is a big step, and one that may help break the logjam in the market. After all, consumers are justifiably concerned about making a bet in home automation — for example — if they are unsure about how various devices may or may not interoperate.
Aaron Tilley points out that IoT has seemed to be, so far, all hat and no cattle:
In some ways, the Internet of Things still feels like empty tech jargon. It’s hard to lump all these different, disparate things together and talk about them in a meaningful way. Maybe once all these things really begin talking to each other, the term will be more appropriate. But for now, there is still a mess in the number of standards out there in the Internet of Things. People have frequently compared it to the VHS-Betamax videotape format war of the 1980s.
The VHS-Betamax format war was not solved by standardization, it was the VHS vendors making the devil’s bargain with porn companies. The OCF may be more like the creation of the SQL standard, where a number of slightly different implementations of relational database technology decided to standardize on the intersection of the various products, and that led to corporations to invest when before they had been stalling.
The consortium includes — beside Intel and Qualcomm — ARRIS, CableLabs, Cisco, Electrolux, GE Digital, Samsung, and Microsoft.
Terry Myerson, Executive Vice President, Windows and Devices Group at Microsoft announced the company’s participation in the creation of the OCF, and spelling out Microsoft’s plans:
We have helped lead the formation of the OCF because we believe deeply in its vision and the potential an open standard can deliver. Despite the opportunity and promise of IoT to connect devices in the home or in businesses, competition between various open standards and closed company protocols have slowed adoption and innovation. […]
Windows 10 devices will natively interoperate with the new OCF standard, making it easy for Windows to discover, communicate, and orchestrate multiple IoT devices in the home, in business, and beyond. The OCF standards will also be fully compatible with the 200 million Windows 10 devices that are “designed for AllSeen” today.
We are designing Windows 10 to be the ideal OS platform for Things, and the Azure IoT platform to be the best cloud companion for Things, and for both of them to interoperate with all Things.
Microsoft was late to the party on mobile, but Nadella’s leadership seems to be all about getting in early on other emerging technologies, like IoT, machine learning, and modern productivity.
Noticeably absent are the other Internet giants: Apple, Amazon, and Google. When will they get on board?
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