Thanks so much for being a key speaker at FEI 2024, focusing on a talk about analytics for innovation. How can businesses power their innovation journey with data and analytics?
“Thank you so much for the warm welcome. I’m very excited to be leading this session on analytics for innovation,” says Sundaram. “While data and analytics are now table stakes to run a successful business, it has the potential to be much more than that, to unlock new opportunities. The range of impact is wide, and it can easily identify tactical changes, large revenue generating, or cost saving initiatives.”
She continues, “Businesses can continuously test, iterate, and improve these ideas. Again, leaning on data and analytics to quantify incremental impact and highlight areas that were successful or need improvement. In this session, we will discuss how businesses have successfully leaned on analytics to power innovation and what they have learned in the process. I would love to hear from you what your journey has been and what your learnings are as well.”
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Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature a session called “Analytics For Innovation,” presented by Anu Sundaram, Vice President, Business Analytics, Rue Gilt Groupe. Where are you as a business? When it comes to your data and analytics, consistent maturity is obviously a must. What does the business need? Areas for analytics work within innovation abound. Efficient, step-change innovation is possible. Divining or refining a data driven analytics strategy is the priority. Register for FEI 2024 here.
Analytics continues to be an important element in innovation. Taking an analytical approach helps companies continually learn about their processes, models, and systems. This will help the company improve their innovation framework over time. “By implementing analytically driven insight, monitoring analytically modeled outcomes, and improving those models over time, an organization will continue to learn,” notes SAS. This learning will translate into successful innovation.
A growing trend in innovation is to break down silos and work more collaboratively, across teams and departments. This applies to both innovation and its close proximity to such organizational groups as marketing, IT, finance and supply chain. As such, increasingly insights is tasked with supporting the product development and innovation team, giving the innovators robust and meaningful research that can help them understand consumer sentiment. This, in turn, can help guide the innovation team’s efforts in building new products and services that aim to satisfy consumer preferences, and bypass any concerns or roadblocks they may have before purchasing.
Virtual natives and interconnected realities—know that we are referencing two books that you wrote simultaneously. But the books highlight two different things. One is people, and one is kind of platforms. Those are my words, not yours.
“I would also say that one is my professional life and one is my personal life, except they each blend into each other,” says Shannon. “Fundamentally, one is about mixed reality, augmented reality, what exists today and where it’s developing and what the trajectory is and what to look for. And the second one is digital anthropology. It looks at Gen Alpha and Gen Z, who are basically everybody born since the year 2000, and how they use digital media and computing tools and why it’s significant. For the last 50 years, we’ve had kids who were actually using some kind of computing. Why is this generation different? What is it going to mean for both work and society going forward? That’s really the question that I and my coauthor got into in Virtual Natives.”
What we’re bringing from those lessons into this session is what corporates can do about it.
“Absolutely,” she says. “We were both seeing evidence that there was different behavior in younger people, and we really wanted to explore that. And we also were hearing all of the extremely negative reporting that’s out there in the media about social media. I’ve got two teenagers myself. That was not the experience that we were seeing in our own intersection with this cohort. We started exploring that. What are the positive sides of young people’s interactions with computing? Where it ended up was back to the topic of work, and it kept coming back to how this cohort behaves differently in the workplace, and how things are changing and the disruptions that they are going to bring. It’s not just about making a flexible work policy. It goes much deeper because they’re going to be disrupting industries.”
You can take some lessons about these consumers, but you can also take lessons about this cohort of talent that is and will be in your organization.
Shannon adds, “It will be necessary to your organization because their way of thinking is unchained from the restrictions of the past and their imagination and their computing prowess is absolutely vital to innovation. It’s the canny organization that actively recruits younger people and treats them the way they want to be treated.”
Is it the fact that computing prowess, which has been high for generations coming into the workforce for quite some time, is it different with this generation because of the democratization and distribution of computing power?
“It’s certainly far more democratized,” relates Shannon. “It’s more that this generation has come at a time where they are no longer aware of that they haven’t lived the original processes, the analog process, the things in the physical world that our computing has since replaced. An example is email. And we call it email mail, and it’s a little envelope icon. If I hand an envelope and a piece of paper and a stamp to my children and say, here, write a letter, put it in the envelope, address the envelope, put a stamp on—they don’t know how to do that. They genuinely ask, where do I write what? They genuinely do not have experience with licking envelopes, sealing them, and putting them in the mail. For them, the envelope icon is this strange relic of the past. And for them, it’s always been electronic because they don’t have the original structure of what physical mail was. For them, when they look at email, they think this is a highly inefficient process. Why am I sending one thing just to one person, when something like Discord or Slack is a much more efficient structure.”
Shannon continues, “That’s really the metaphor for almost everything that’s happening. Our generation created a computer version of the analog thing that was there. We created email. And our kids are looking at it and going, why? Because they are not familiar with the original thing that it replaced. They’re finding better ways to do things. It makes far more sense for me to send you a message that goes with this project and it lives with the life of the project and everybody needs to see it rather than me sending the equivalent of an interoffice memo in an envelope that nobody else can see. It’s their ability, their impatience with the slow speed of the world that we’ve created because they have the tools to do things much more quickly. They’re coming into adulthood. The oldest among them are 24. They’re just coming out of college. They’re just going into the workforce, and they’re hitting inefficiencies and going, really? There’s got to be a better way.”
This is a “but now we have to do something about it” moment.
“We talk about both the importance of understanding this cohort as valuable employees and as customers. Because as customers also, they are applying different criteria to your product. There’s things that they value, authenticity is extremely important to them, and the things that let them participate, and things that let them have a voice and help to shape things,” she says.
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Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature a session called “Guidance From Virtual Natives & Interconnected Realties,” presented by Leslie Shannon, Head of Trend and Innovation Scouting, Nokia. This session blends the lessons learned from both of her books into a slew of actionable takeaways on how you can evolve your organization. Understanding now deeply embedded GenAI will be in our culture moving forward; breaking us away from screens and providing information via context-based means; understanding that Gen Z is at home with that technological evolution; seeing your organization differently through the eyes of virtual natives and meeting them where they are; recognizing that there are no analog limits to the imaginations of virtual natives; and realizing that organizational resilience is dependent on adapting to how humanity is developing. Register for FEI 2024 here.
Just what is happening with the metaverse? All Things Innovation’s Seth Adler caught up with Leslie Shannon, Head of Trend & Innovation Scouting, Nokia, at the FEI conference earlier this year to discuss the metaverse, its evolving status, innovation and all points in between. This follows the publication of Shannon’s new book, “Interconnected Realities: How the Metaverse Will Transform Our Relationship with Technology Forever.”
What matters in the metaverse is what matters in any ‘verse.’ Brands must have metrics in place to measure performance. Organizations must have signals in place to capture customer feedback. There must be a promise and understanding in place regarding the engagement experience– something of course with unique opportunities in this new space. And of course, the potential business impact must be understood and quantified. This panel outlines how to act now within each of these areas of interest.
We thank both of you for attending the upcoming FEI 2024. Specifically, you will be in the plenary session, in advance of our generative AI roundtables, where we are going to populate hundreds of use cases into a report and release that afterwards. You’re kicking off that session, Natalia, with some great research.
“Yes. Absolutely,” says Nygren Modjeska. “We just completed a study with the early adopters of generative AI. These are enterprises who’ve adopted generative AI already. So, basically, having finished piloting and scaling up, so we’ve got some really interesting insights in terms of where they’re using generative AI, what challenges they’re experiencing, how much budget they have, which solutions they’re piloting. Are they going with open source? Are they building their own systems?”
With all of that information and research, and all of those insights, Brad, what are you seeing? What are you reading in the tea leaves as we make our way towards FEI in June?
Shimmin says, “As Natalia said, it’s being adopted widely and across a lot of different use cases. And one of the reasons for that is that it’s so easily accessible. As Natalia mentioned, companies are choosing, for example, open source as a primary driver of their investment in GenAI. But it’s a bit of a double-edged sword, and what I’d like to talk about at the show is that can create a skills gap, within an organization or accentuate an existing one, if you will. And so I’d like to offer some advice we have on research that we do ongoing in looking at how companies are hiring, to actually build out the teams that go into creating GenAI.”
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Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature a session called “GenAI: Lessons Learned From Early Adopters.” The buzz around generative AI (GenAI) dominated discussions in and out of the boardroom throughout 2023. With mounting pressures to stay ahead of the competition, adopting transformative technologies like GenAI can pave the way for enterprises to stand out, but isn’t without due risk. To kickstart this roundtable, Omdia analysts will unpack the findings from our most comprehensive survey today into early adopters of GenAI, setting the groundwork for group discussions. Join Bradley Shimmin, Chief Analyst, AI Platforms, Analytics and Data Management, Omdia, and Natalia Nygren Modjeska, Research Director, Omdia. Register for FEI 2024 here.
From Michael Bagalman’s “Data Science for Decision Makers” series: Over the last year, AI went from being the next big thing to being the Big Thing. In particular, Large Language Models (LLMs) from companies like OpenAI and Anthropic are capable of generating text just like a person. More to the point, despite not actually “thinking” the way a human does, the powerful LLMs easily available online can easily answer questions.
Advances in artificial intelligence are powering AI-driven innovation. As machines become smarter and tech developments are rapidly progressing, there is more potential to improve innovation processes and systems, both for the human and AI element. This is leading to more of an emphasis on innovation-led growth, a methodology or framework to collect ideas, engage people, manage ideas, measure impact and automate innovation as a lever for growth, as noted by Ideanote.
Similarly, John Ames has made waves with his recent book titled “Revolt: The Rise of Fractional and the Death of Full Time.” Beyond these individuals, there’s a vibrant community of both Fractional professionals and those curious about the concept, with hubs like Fractionals United and The Fractional Exec Community drawing attention globally.
This phenomenon of fractional employment is rapidly reshaping the landscape of work, especially for forward-thinking companies in sectors like FMCG, biotech, and startups. The trend towards fractional hiring is fundamentally altering how businesses approach staffing and accessing the specialized expertise necessary for driving growth and innovation.
Fractional Hiring
Fractional hiring involves employing individuals to work for a fraction of the time a full-time employee would, providing businesses with access to executive-level expertise on a part-time basis. These fractional hires, often seasoned professionals with years of experience, offer their skills to multiple clients, enriching companies with their knowledge without the long-term commitment or cost associated with full-time hires. Unlike traditional part-time roles, fractional positions are characterized by their ongoing relationship with the company, allowing for a deep understanding of the business’s objectives and challenges.
Where Does Fractional Employment Occur?
Fractional employment has expanded across various sectors, including marketing, service industries, and increasingly, in innovation-driven fields. Companies leverage fractional hires for their flexibility and the opportunity to bring on board expertise that they might not require or afford full-time, but which is crucial for specific projects or phases of growth.
The Trend of Fractional Employment
The shift towards fractional employment is driven by several factors. Organizations are seeking ways to remain agile, reduce overheads, and access specialized skills on demand. Additionally, the gig economy’s growth has normalized flexible work arrangements, with many professionals seeking work that offers balance, variety, and the opportunity to apply their skills across different challenges.
Roles Becoming Fractional
Typically, roles such as CEO, CFO, CMO, and COO are becoming fractional, allowing startups and SMEs to benefit from high-level leadership without the associated costs. These fractional executives come with cross-industry experience, offering fresh perspectives and focused problem-solving skills.
Growth of Fractional Roles
Recent data from the Bureau of Labor Statistics highlights a significant uptick in temporary business management roles, with an 18% increase from 2021 to 2022 and a 57% rise since 2020, driven by the merging challenges of hiring and resource constraints in the same period. This trend underscores the cost-effectiveness of fractional talent and interim support, particularly beneficial for small to medium-sized enterprises, as well as PE- and VC-backed companies.
Catalant’s project data corroborates the surging demand for such roles, attributing it to the need for flexibility and specialized skills in uncertain times. This approach is notably prevalent in PE-backed companies undertaking transformative work, where leveraging experienced professionals on a part-time basis can provide invaluable expertise without the commitment to full-time employment.
Fractional Job Boards and Communities
Platforms like Indeed, Useshiny, TheFreeAgent, Toptal, FlexJobs, and GigX cater to fractional and freelance professionals, offering a space for companies to find fractional executives. More specialized job boards and networks focusing on executive-level fractional roles are also emerging, reflecting the growing demand for this employment model.
Impact on Innovation-Driven Companies
For companies and startups in sectors that rely heavily on innovation, fractional hiring can be a game-changer. Access to seasoned executives on a fractional basis allows these companies to navigate growth, scale challenges, and innovation hurdles more effectively. By integrating fractional hires, companies can:
Leverage executive experience and cross-industry insights without the full-time cost.
Gain focused expertise to drive specific projects or navigate critical growth phases.
Enhance agility by bringing in specialized skills as and when needed.
A Strategic Approach to Talent
Fractional employment is not just a trend but a strategic approach to talent management in the modern workplace. For companies pushing the boundaries of innovation, fractional hires offer a way to access the experience and skills needed to fuel growth without the overhead of full-time executive positions. As this employment model continues to evolve, it will likely become an integral part of how companies think about staffing and innovation in the future.
You’re speaking at FEI 2024. You’re also a big part of our startup competition on net zero emissions. We’ll get to that. But you’ve been kind enough to put together a session about the partnerships that corporates and startups really must forge.
“There’s a lot of different ways that corporations and startups are partnering,” says Hart. “A lot of corporations have CVCs, which are corporate venture capital arms, and so they have various company investment strategies around the types of companies, whether they’re investing in their core technology space or they’re interested in looking a little bit further into the future. That’s one space where corporations are working with startups. Sometimes a lot of companies have innovation teams or even the business units are scouting startups for potential acquisitions or running proof of concepts or pilots with them. They could have a tech scouting team. It could be an innovation team.”
She continues, “There are also some companies where they’ll engage in startup accelerators, and there are a couple different things they are trying to get in front of, such as deal flow for their investments, scouting, bringing them in internally. Then, honestly, sometimes it’s just around culture fit. They’re trying to absorb some of that startup, their innovation, best practices, methodologies, just energy into the organization. I’ve seen companies run accelerators based on that.”
You are in a unique position to give us some best practices no matter which one of those categories the partnership falls into.
“I’d say the big things to look out for is from both the startup side and the corporation side is really the matching,” she says. “It can take a long time to logistically, legally, procurement wise and so on, to form relationships. Be super transparent upfront as a corporation on what your process is. I’ve talked to people at corporations that say they just can’t work with startups. Or there is an issue with the procurement process, for example, where the startup will potentially be out of business or their business model has changed in eight months. Then there’s corporations that are known for being really start-up friendly, and they have specific vendor contracts, specific processes, to quickly onboard start-ups. Tip number one is just being really upfront about those things in the beginning and having those conversations.”
You’re also on the net zero emission startup competition committee. We’re giving away $25,000 to the net zero emission startup seed stage that can really help us corporates meet those net zero emissions mandates. Is there anything specific you want to mention on that?
Hart adds, “We’re specifically looking for startups that have kind of a horizontal touch. They might not be industry specific, but they can help maybe in the finance, manufacturing, logistics and supply chain. We’re excited about that horizontal. It’s a hot topic right now, and there’s both digital solutions and physical solutions. There are platforms. There’s just a million ways that we can see startups coming in, so we’re really excited.”
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Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature the session, “Corporate Innovation: Internal & External Best Practice,” presented by Carley Hart, Director of Corporate Partnerships, Runway Startups, Cornell Tech. One of the reasons that good corporate startup partnerships succeed is due to a clear division of responsibilities based on what each party brings to the table. Corporates traditionally don’t move quickly due to refined and efficient processes. Startups, by definition, need to focus on finding scale. Dive into successful corporate innovation through corporate start-up partnerships. Register for FEI 2024 here.
Corporations often face many challenges when it comes to developing innovation in a fast, evolving market. They can face barriers such as inertia, the silo mentality, a large bureaucracy, and even risk aversion can permeate the company culture. That’s where partnerships with startups can come into play, as these firms tend to be smaller and more flexible, creative, agile and disruptive. The partnership between an established corporation and startup can benefit both parties, as they leverage shared resources and a singular vision, whether it be rolling out an innovation or expanding into new markets.
Startup and corporate partnerships are a delicate balancing act but one that can maximize innovation success for both partners. Certainly, there are challenges and opportunities from both perspectives. For the startup, there may be initial struggles, such as raising investment funds, hiring key employees, gaining customers and expanding into new markets. For more established, large corporations, many face intensified market competition, are slow to act, and there could often be internal barriers to fostering an innovative culture. Yet, it can be a win-win formula between the startup and the corporation, as they pool their experiences and connections, and which can bring success to both parties.
We’re so thrilled to have you participating at FEI 2024 in a couple of different ways. Let’s first talk about the Tatum T1, the robot that you have created, and the fact that we are featuring that at our “Brunch with the Bots” session.
Johnson notes, “Our T1 is our tactile signing finger spelling hand. This is the first assistive communication device designed specifically for people who are deaf and blind. We actually developed a robotic hand that looks and feels like a human hand that deaf/blind people can hold onto and receive communication independently, whether that’s books, news, websites, weather, things like that. The Brunch with the Bots session is meant to be collaborative. So, hopefully, attendees can come up, feel it, get to experience the same things that deaf/blind people do as they use it.”
Speaking of collaborative, we’ve got several different ways that we’re collaborative at FEI. It has always been a cross-industry event. It also has been an interdisciplinary event, bringing together several different job titles from across a corporation. Really, it’s always been designed for those corporate change makers. And what we’re doing this year is making sure to increase the interactivity of those folks on-site. There’s a lot of round tables and interactive sessions. One of those sessions is our Gen Z focus, bringing together folks like you from Gen Z who have actually accomplished something, and that brings in our intergenerational interactivity that we’re doing at FEI24. Thanks so much for being a part of this panel. What are you excited about?
“I think you’ve spoken to really the breadth that’s on the panel, and that’s so exciting to see,” says Johnson. “You know, I’m obviously in the robotics sector, but you have people who are influencers, people who are speaking at the UN and really just building this really broad space that people with different backgrounds can really speak to the impact that Gen Z is having and really the change that’s being made as a result.”
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Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature the keynote session and next generation intelligence panel, “Gen Z Focus.” While not a traditional focus group, this live session launches with Gen Z creators sharing their thoughts on corporate innovation—what they see currently working and what is currently turning them off.
The show will also feature the keynote session, “Brunch with Bots,” at FEI 2024. This session provides a mix of Autonomous Mobile Robots (AMRs), Automated Guided Vehicles (AGVs), Articulated Robots, Humanoids, Cobots, Hybrids and of course dogs greeting the delegation in a Bot Commencement Ceremony with handler’s giving dashboard information about each bot. Each bot and handler is then available for networking at various stations throughout the main hall. Register for FEI 2024 here.
Generation Z is in a unique position as they are often viewed as one of the first to be shaped and influenced by technology such as the Internet, social media and smartphones. This generation, often labeled digital natives, has embraced change, adopted and interacted with tech from an early age. Gen Z comprises people born between roughly 1996 and 2010. This generation’s identity has been shaped by the digital age, climate anxiety, a shifting financial landscape, the war on terror and COVID-19, among other things. Yet, despite that, Gen Z is super comfortable with tech, giving them a unique impact on shaping technology trends, the future of work and play and the challenge of societal norms. In other words, Gen Z may be perfectly suited for innovation.
New technology has the capacity to make a mighty impact on society, in both large and small ways, before that very same technology becomes more commonplace in our everyday lives. Case in point: Remember when the Internet was young? With the rise of artificial intelligence, Generative AI and machine learning is certainly making the headlines recently, and we may just be at the start of the technology’s hype cycle. That got All Things Innovation thinking about other AI-related technologies and innovations that are creating disruption and influencing humanity: What about the bots?
We are looking forward to FEI 2024. You’ve been kind enough to participate as a speaker. It’s a pretty great session, which has to do with your own actual personal experience in your industry.
“I came into this with a diverse background and experience. I worked for the incumbent, the biggest company in my industry that was established and really good and efficient at what they did,” says Slavens. “It was amazing to see how we ran our operations and how we worked with customers and how we developed really good products for the end consumer.”
He continues, “We would try to innovate but we were always constrained and how we innovated around what our current capabilities were, who our retail partners were, and what we believed our customers wanted—and found ourselves unable to actually do things that could be disruptive to ourselves. We knew that there were competitors all around us that were coming up with new opportunities and new ways of doing things that were slowly taking share. We would talk about innovation and disruption, but we were incapable to basically take away resources from the things that had worked historically and feed them towards those new innovative opportunities that could truly disrupt our business model, our product offerings, and things that would make us relevant going into the future. Eventually, I got to the point where I said, I’m becoming complacent, working in this highly efficient model. I need to actually disrupt myself.”
That’s the classic innovator’s dilemma right there. We’ve got a new product or service. We know that it’s amazing. We’re so efficient. But that leads to the fact that we’re not innovative.
He says, “Yes, I was starting to become so used to working with all these resources and people that could get things done in a timely manner that I was forgetting how to actually think and be creative and do things for myself. I essentially said, I’m going to start over again and go work as an innovator in a new innovative company that was being disruptive and trying to do something totally novel for a very historically established industry: agriculture. It’s been amazingly different, and challenging, but so self-gratifying.”
Your FEI presentation is on self-disruption. What we’re really talking about is the organization itself.
“We should always be focused on constant growth and continual improvement,” says Slavens. “But from an organizational standpoint, that’s the thing that eventually continues to pay the bills, continues to pay for our salaries and help us be successful. Every organization is slowly on the path to dying. And so how long do we want that path to be? Do we want it to be rapid or do we want to continue to live a good, healthy life as long as possible, and continue to be relevant?”
Your session also has a little bit of focus on sustainability—that opening thought that to not be sustainable, just isn’t sustainable.
Slavens adds, “There’s obviously been a lot of momentum towards sustainability and ESG and all sorts of things, which are all very good and important when guided correctly. But an important principle that I think we often take for granted is a company cannot be sustainable, if it actually doesn’t have a business model that’s sustainable in that it can generate revenue, generate profits, and actually do things that a customer wants them to do. To be sustainable, you must be sustainable. It’s a very simple concept, but sometimes we get so focused on being environmentally sustainable, we make compromises and do things that actually hurt us in how we operate, and we can no longer pay the bills. What good are we then if we’re out of business?”
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Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature a panel session called “Self-Disruption: Balancing Short Term Gain With Long Term Meaningful Value,” presented by Mark Slavens, President and Chief Operating Officer, Nano-Yield. Regenerative agriculture. Stewarding the land. These have always been the central tenets of the farming community. Nano-Yield is developing nano particle technology to increase quality and yield, leading to solid ROI for those farmers. This session explores the application of next generation technology in a traditional industry like farming and provides a blueprint for utilizing those same principles in any industry, such as sustainability, optimization, self-disruption, and resilience. Register for FEI 2024 here.
Within innovation, there is often a balancing act between short-term goals and long-term planning. This is faced by innovators as they work through enterprise strategies that aim to disrupt the status quo. Should one focus on a short-term goal or is long-term commitment the key to fueling sustainable growth, development, and innovation? These questions are often tied to the debate about disruptive innovation, and more specifically, self-disruption. The self-disruptive journey is a means to anticipate the change and disruption, at scale, scope, and speed—to get ahead of the curve and the competition.
All Things Innovation and FEI are thrilled that you’re with us for the event and what you’re talking about essentially is collective intelligence, marrying human intelligence with artificial intelligence.
“When a lot of people talk about artificial intelligence, they talk about replacing humans with it,” says High. “That’s not what I want to do, and that’s not what’s effective. That’s not what I tell other companies to do. I really encourage folks to use artificial intelligence to increase their throughput. That’s the real magic—increasing the throughput. I once told somebody that if I want an AI to do what a human can do, I’ll just go get a human. But if I want to do something that humans can’t do, or if I want to go and make sure that humans are safe, then I can use robots and AIs and drones and things like that—to do the work that keeps people safe and increases their productivity.”
He continues, “There’s a big scare about generative AI coming out right now. And it shouldn’t be. It should be, hey, we can really move fast now. We can get a lot done quickly. A lot of the work that was really kind of what we called grunt work—I used to be a marine, so I know about grunt work—that doesn’t have to be done by us anymore. That can be done by the AI, and we can move much faster and do a whole lot more.”
You will be bringing examples of your work to FEI, and show attendees are going to have to see to understand what we’re talking about but there is plenty going on with AI right on your desk.
“Absolutely,” says High. “Now I don’t have to know everything. As I get older, this is a big deal to me because, I don’t have to be able to think about everything and know everything and learn everything. I’ve got four AI’s that helped me do my work. The AI’s make it so that I can move extremely fast. Recently, people have been saying, Don just does some unbelievable stuff. It’s just because I use the power that I have with me. Of course, there’s much responsibility that comes with much power. But I use the power that I have with me to help build things very quickly and get stuff done for a lot of different people. I can condense eighty-five hours worth of work down to eight hours of work—or even less than that. I’ve been able to really get a ton of work done and move a lot through for a lot of different companies and organizations.”
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Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature a session called “Innovation Means Increasing Throughput Not Reducing FTE,” presented by Donald High, Chief Data Scientist, Internal Revenue Service. Strategy, transformation and data science leaders know that the value from automation and/or AI is not provided through the reduction of talent. The value of automation and AI is provided by on-the-ground experts disseminating their tacit human knowledge so a new process can be put in place around new technology. That process, coupled with a strategy and a plan, provides the pathway for enterprise value in the form of collective (human and machine) intelligence. Register for FEI 2024 here.
With the focus on how artificial intelligence, as well as digital transformation efforts, can help streamline operations, it’s worth another look at the concept of automation, and how it can benefit innovation. Automation can spark innovation efforts by freeing up resources and providing data and insights. This in turn can benefit innovation, which can lead to the development of new tools and technologies. In today’s rapid business environment, the positive feedback loop created between automation and innovation can help shape the future of work in an organization and provide a forward-looking roadmap.
Yet, in the vast landscape of data science, we become surprisingly camera-shy. We possess an arsenal of tools to visualize our data, to see the stories within, and yet, we hesitate. Why? Because sometimes we choose to overthink things, making ourselves feel smart. We treat these tools like family portraits at holiday time, when they should be the candid photos of weekend outings.
Enter the enigmatic realm of Dimensionality Reduction, such as perceptual mapping, multidimensional scaling, and factor analysis. It sounds like a clandestine code whispered in the hallowed halls of a secret society, but fear not, for it is here to serve, not to confound.
Permit me an analogy. Imagine you are at the World Economic Forum in Davos, Switzerland, trying to organize a group photo. It would be like trying to arrange a family portrait where all the members are billionaires or Nobel Prize winners; good luck getting them to agree on anything, let alone stand where you want them.
Bill Gates is talking with Elon Musk; you want them close in the photo since they are both technology entrepreneurs. Nearby is George Soros—also a philanthropist like Gates but less similar to Musk. You try to position the shot so Gates and Soros align while Musk stands nearer to Gates than Soros.
Across the room is Jeff Bezos—billionaire entrepreneur but less focused on technology than Gates and Musk. You move to find an angle where Gates and Musk are positioned very close, with Bezos nearby but slightly apart, and Soros lined up with Gates at more distance from Musk and Bezos.
In effect, this creates a 2D clustering of distinct individuals by their main shared characteristics. The key connections converge in the frame and amplify each other by their proximity, just as dimensionality reduction does with data to create insightful maps—our lens onto the landscape.
Framing the Shot
A collection of data science tools under the umbrella term “dimensionality reduction” provides a way to generate these pictures based on data. Dimensionality Reduction sounds like something you’d do to your waistline after the holidays, but in data science, it’s a tad more complex and a great deal more useful.
Suppose you are in the automobile industry. You might have data on every major car brand, including physical characteristics of the brands (e.g., capacity, horsepower), consumer perceptions of the brand (e.g., stylish), and marketing (e.g., target audience, total media spend).
Or maybe you are in the consumer-packaged goods business and you’ve just finished a customer survey asking questions about perceptions of your product, such as quality, price, ease of use, and functionality.
Data analysis could create a chart showing the relationships between the different car brands, each plotted somewhere on the X,Y plane. Or a similar chart that used the CPG survey to segment the customers based on two inferred characteristics combined from the survey questions, such as a value scale vs. a performance scale.
A clever use of these techniques can overlay two maps on top of one another. A movie studio might have data about a slate of movies and the potential audiences, use dimensionality reduction on each and create a single map that shows not only the relationship of movie vs. movie and audience segment vs. audience segment, but also positions the movies and audience segments relative to one another.
Filters and Lenses
Let us open our photo app and review the various filters of our data science toolkit. Brace yourselves, for here are the Daguerreotypes of data debauchery.
Multidimensional Scaling (MDS): Imagine measuring the difference between every pair of items—be it brands or customers—across a myriad of dimensions. Now picture these items plotted on a 2-dimensional chart, but maintaining an approximation of the real distances between them. Marketing wields MDS to hunt for “white space” and position your wares for competitive victory.
Perceptual Mapping: Like eavesdropping on the conversations at the Davos Summit. Imagine you’re there, ear to the ground, listening to the whispers of billionaires, Nobel laureates, and visionaries. Perceptual mapping takes the buzz, the vibes, and the zeitgeist then weaves it into a tapestry. Topics discussed become constellations and your photo subjects align accordingly.
Factor Analysis: Close your eyes and listen to Davos. The collection of cacophonous conversations is a kaleidoscope of capitalistic colloquy. Factor analysis distills them into key motifs. Think of it as summarizing a thousand soliloquies into a handful of powerful lines.
Other filters for our photographic endeavor carry jargony names worthy of NASA’s finest confusologist: principal components analysis, t-Distributed Stochastic Neighbor Embedding, Uniform Manifold Approximation and Projection, and Autoencoding.
Focus and Zoom
We can leverage existing data resources to explore new potential business opportunities.
Begin with a modest dataset, one that comfortably fits within a spreadsheet. Document the key attributes of your products and your competitors’ offerings to map the competitive landscape. Use this to shape strategies for updating pricing and products aimed at expanding into untapped market areas.
Tap into the raw data from latest customer surveys by transforming them into perceptual maps. This mapping forms the foundation of a plan to clearly differentiate your brand from even your closest competitor. Or venture into the esoteric domain of distribution partnerships, employing data enshrined within your annals regarding sales figures, equivalized volume, and territorial expanse. Fashion a positioning chart of the interplay between your conduits of distribution and the wider market. Forge alliances that augment rather than replicate.
Gallery Wall
Let not the labyrinthine depths of underlying data or the sorcery of mathematical incantations bewitch thee into excessive rumination upon the highest resolution of the charts! Pixel count is not our measure of success.
The objective lies in distilling complexity into simpler realms. We doubly bifurcate our chart’s canvas into four cardinal quadrants, each a beacon illuminating its own narrative. These serve as the arbiters between the wheat and the chaff, and, when wielded sagely, can steer decisions from international investments to whom to expel from one’s fantasy football team.
For project prioritization, I profess fealty to the PICK chart, whose axes gauge the exertion and the potential value of each proposed endeavor. Projects of lower exertion yet bounteous value reveal themselves with startling clarity, ascending the ladder of priority. PICK, an acronym, unveils the chambers of this chart’s sanctum:
And in my quest for personal efficacy, I invoke the matrix named for Dwight Eisenhower, Supreme Allied Commander. Each task, weighed upon the scales of importance versus urgency, finds its place within a quadrant’s embrace. The designation of each box proclaims whether the task merits immediate action, a rendezvous in the near future, delegation to another, or outright annihilation.
Witness, too, the well-known appraisals of the Gartner Group, who employ quadrant charts in their discernment of brands and products.
Overexposure
Exercise caution, for as with any implement, its employment demands circumspection. For some, contact lenses bring clarity, while others must wear bifocals upon the tips of their noses. Contact your data scientist if you begin to experience headaches or blurred vision.
While these cartographic marvels serve to distill complexity, do not be beguiled into neglecting the minutiae. Let these maps guide strategic ruminations, yet do not eschew scrutiny of the particulars before committing wholesale to the grand design.
Consider this analogy: Envision a globe, a radiant lightbulb held within. Envelop it within a cylinder of paper, capturing the contours of continents projected from the radiant core. Then unfurl the parchment and a map unfolds, a Mercator projection. Though a paragon of utility, one must concede its inherent distortions. Greenland is in truth much smaller than Africa. A flight from New York to Tokyo arcs, seemingly in denial of Euclid’s postulates, for the world is not flat.
Yet amidst these distortions, utility abides. Should you need to locate Paris, Texas vis-à-vis its more Francophone namesake, this map proves a stalwart companion indeed.
Should your perceptual odyssey unveil unexpected proximities between your brand and erstwhile strangers, perhaps therein lies a kernel of brilliance—or perchance, an oversight in the data’s embrace. Double-check where you double-down, for prudence yields wisdom where recklessness courts folly.
Shoot Now… Edit Later
Call in your data scientist and your head of market research. Talk to them about what data is already available and in a format that could quickly be put through “dimensionality reduction” to make a map. Let them sweat the details of the data and the exact mathematical approach.
Upon receipt of the cartographic display, scrutinize the landscape with your leadership team from marketing, product design, customer experience, and so on. Rethink your business. Hypothesize new insights.
But before you turn every spreadsheet and database table into an Ansel Adams masterpiece, remember: a picture is only as useful as the insights it provides. Otherwise, it’s just modern art. Task the data science and market research teams with validating your nascent insights. Whatever withstands the scrutiny, put into action.
Leave the math to the data scientists, but take the insights to the bank.
For more columns from Michael Bagalman’s Data Science for Decision Makers series, click here.
Understanding the new product development process and how AI can support that ecosystem is a window into just how much this new tool can help benefit the innovative product lifecycle. Optimizely, in its blog, “How to start using AI in product development today without breaking your existing process,” by David Carlile, Senior Director of Product Strategy, looks at several angles of new product development and how AI can help. Ultimately, AI can help best by saving time in the NPD process. Optimizely points out that “understanding potential users, getting deeper insights from customer data, and building prototypes,” all takes an extensive amount of time. AI can create efficiencies in these areas.
AI tools may help build better features and functions of a product, but human interaction, of course, is still necessary. In fact, Carlile points out that at least on the surface, the NPD process and practices may remain similar to what it was. “As a product team, you should evaluate your product development process for AI readiness. It means assessing the existing infrastructure, availability of quality data, and the technical capabilities of your team,” he says. Once an assessment is complete, Optimizely maps out that the team may be able to identify just where AI can help—with automation, such as tasks like basic product design, generative design, product plans; use a recommendation engine to personalize the user experience; and manage inventory, resource allocation and pricing based on data.
AI can also be used to augment customer research in myriad ways. “What you can do is use AI for data analysis and break down your research into a functional hypothesis,” says Carlile. “Here data will help your product development team learn what kind of products you can build for your target audience; which messaging and content will resonate with this audience even if you’re using chatbots; and test optimum price points that will be relevant to your target audience.” Leveraging AI in this way will streamline the new product development process, and its multitude of iterations and idea generation practices.
An Insights-Critical Mission
Ultimately, AI can help streamline and strengthen the insights process for innovation. In “Make Insights Critical to the Innovation Process,” All Things Innovation looked at the critical data driven processes necessary for innovation and product development. Increasingly, insights is tasked with supporting the product development and innovation team, giving innovators robust and meaningful research that can help them understand consumer sentiment. This, in turn, can help guide the innovation team’s efforts in building new products and services that aim to satisfy consumer preferences, and bypass any concerns or roadblocks they may have before purchasing.
Looking forward to FEI 2024? The conference, which will be held June 10 to 12, will feature the session, “AI-Powered Insights: How to Get Your NPD Process Down to a Science,” presented by Nik Pearmine, Chief Strategy Officer at Black Swan Data. We’ve entered a new era of product innovation. Instead of asking a handful of consumers survey questions, we can harness what millions of people are actively talking about online to scientifically answer the big and small questions along the innovation process. Join Pearmine as he delves into the transformative power of AI, and how it’s revolutionizing the speed, precision, and NPD success rates for industry leaders like PepsiCo, Heineken, and General Mills. Register for FEI 2024 here.
A Look at Tech’s Advantages
Using AI in the new product development process offers a range of benefits that can significantly enhance efficiency, effectiveness, and innovation. Some of the top benefits, according to ChatGPT, include:
Faster Decision Making: AI-powered analytics can process vast amounts of data quickly, enabling faster decision-making based on market trends, consumer preferences, and competitor analysis.
Improved Product Design: AI algorithms can analyze consumer feedback, market trends, and historical data to suggest product features, designs, and functionalities that are likely to resonate with target audiences.
Enhanced Personalization: AI enables companies to personalize products and services based on individual customer preferences, behavior patterns, and demographic information, leading to higher customer satisfaction and loyalty.
Cost Reduction: By automating repetitive tasks and streamlining processes, AI can help reduce production costs, optimize resource allocation, and minimize waste in the product development lifecycle.
Predictive Maintenance: AI-powered predictive analytics can forecast equipment failures and maintenance needs, ensuring optimal performance and minimizing downtime in manufacturing processes.
Market Prediction: AI algorithms can analyze market data, consumer behavior, and competitor strategies to forecast demand, identify emerging trends, and anticipate future market opportunities, helping companies stay ahead of the competition.
Optimized Supply Chain Management: AI-driven supply chain optimization tools can improve inventory management, demand forecasting, and logistics planning, leading to more efficient production and distribution processes.
Risk Mitigation: AI can analyze potential risks associated with new product development, such as regulatory compliance issues, market uncertainties, and production challenges, enabling companies to proactively mitigate these risks and make informed decisions.
Iterative Improvement: AI-powered analytics can continuously monitor product performance, gather feedback from customers, and identify areas for improvement, facilitating iterative product development cycles and enhancing overall product quality.
Competitive Advantage: Companies that effectively leverage AI in new product development gain a competitive edge by accelerating time-to-market, delivering innovative solutions, and meeting evolving customer demands more effectively than their competitors.
Ramping Up the Experiment
Overall, integrating AI into the new product development process can drive innovation, improve efficiency, and help companies deliver products that better meet the needs and preferences of their target audience.
For Optimizely’s Carlile, tying AI to experimentation is essential in the new product development process. A test-and-learn approach will also benefit how customer impact can be measured at every step. “Going forward, I see AI and experimentation aligning perfectly in terms of spirit and decision-making. Remember to test and learn as ultimately anything you can do to understand your user will help you build better products,” says Carlile.
