sentinel report optimize business value non- … · data-driven companies report a 20% to 30%...

NON-TRADITIONAL WAYS TO OPTIMIZE BUSINESS VALUE

Report Q4 2019

SENTINELREPORT

©2019 Globant - All rights reserved

“When you change your mindset and challenge the status quo of your organization, you unlock unlimited value”

MARTIN MIGOYACEO OF GLOBANT

The Sentinel Report is one of Globant’s initiatives to stay relevant through observation of metrics, statements, market trends, insights, and industry updates on consumer behavior from all over the world.

This information is meant to inspire new thoughts and trigger new conversations about products, services, ideas, and opportunities in an effort to help us be more creative and innovative in our solutions.

Observation and action are at the core of any sustainable strategy and we believe that this is a great way to create a positive trend.

We encourage you to share this information with your colleagues and deepen your understanding of the concepts and ideas that we present here.

Take a look and enjoy!

87% of companies are in the process of transformationbut... into what?Current organizational dynamics are not providing the level of results that are expected by the market today.

Customer expectations are high, and their ability and willingness to switch from brands are higher than ever.

Organizations need a new mindset to approach value, a new way to find value and to make it sustainable.

Source: https://mkt.globant.com/2019/dataStudy/

Optimizing business value is now more important than ever.

The average top-500 company is less than 20 years old today, compared to being over 60 years old in the 1950s.

In order to stay relevant, we need a new way of understanding business value.

Source: https://www.cnbc.com/2017/08/24/technology-killing-off-corporations-average-lifespan-of-company-under-20-years.html

5.Thinkwayoutsidethe box

NOW LISTEN UP Here are your 5 non-traditional ways to optimize business value

3.PutData to work

1.Trans-formation on the streets

2.Eyes on the prize

4.Keep talent alive

5.Thinkwayoutside the box

3.PutDatato work

1.Transformation on the streets

2.Eyes on the prize

4.Keep talent alive

Digitally matureorganizations are clear and motivated about technology.

28%Have a clear digitally driven business goals

18%Have clear and strong digital vision

23%Have technology-passionate employees

16%Maintain a data-driven culture

14%Are early technology adopters

Digitally matureorganizations prioritize people.

47%of leaders believe that the ability to access relevant data and turn it into actionable insights ranked second most valuable

52%of leaders believe that

collaboration acrossdepartments is the most

valuable capability for success in digital

transformationSource: https://mkt.globant.com/2019/dataStudy/

https://mkt.globant.com/2019/dataStudy/

If you want true success, you need to bring sustainable results and impact to your employees and customers, really fast.

Here’s three ways to do that. 1. Start small.2. Make the ordinary

beautiful.3. Lead with

experimentation.

STOP the pretentiousnon-actionable speech.

Transformation on the streets

Start small with an idea, that grows into a conversation, then a prototype, and next come the necessary iterations. Let it grow! This builds momentum and actual results.

START SMALL

Changing is a monumental task.Most companies get stuck on the sheer scale of this undertaking.

Now, the protagonists of almost all successful transformation stories choose to start with one small thing. One experiment that allowed them to earn trust, gain confidence, and build momentum. Then they used it as a springboard for their next priorities.

One project. One result. Build from there. Choose one problem, out of the millions that you have. And instead of planning every single detail, start prototyping, make a solution out of it quickly, something that you can show your teams to start conversations.

Not even 100%, just 10%. Make small, incremental changes fast—it will create a big impact in your organization.

MAKE THE ORDINARY BEAUTIFUL

You need quick wins. Something that will get people excited and make them believe that change is good. So, go to the ground level, get to know a simple, plain-old, ordinary task, something that is being done multiple times every day, and make it 10% better.


Having skin in the game is critical to ensure the success of any venture. Each transformation is a huge undertaking that requires employees to feel total ownership and be driving it themselves.

To ensure this ownership, corporate culture must embrace risk taking.

An environment that promotes taking risks is a good catalyst for transformation. Failure is one of the potential outcomes; it should be natural and accepted. However, there should be systems in place to reduce the chances of failure. Having the muscle memory to learn from past experiences, and using a network-based approach to take risks under collaboration are key elements of the culture that enable risk-taking. They also increase the chances of success in a transformation.

After establishing this kind of culture, what else makes the difference? Understanding from the outset the potential output of particular actions. Being clear on the key drivers of certain outcomes, and to be able to measure those drivers and the result.

Learning happens once the insights are shared and internalized by the employees driving the transformation efforts.

Collaboration and a network approach to driving transformations significantly reduce the chances of failure. Driving transformation via networks means organizing efforts into multiple cells or teams of individuals. Bringing multiple backgrounds and perspectives together to tackle specific issues increases the likelihood of success.

Besides setting the objectives, culture, and metrics, leaders are responsible for creating the environment that their transformation needs in order to succeed. Today, more than ever, the role of the leader is anchored in listening, mentoring, communicating, and facilitating the work of their teams.

So, if you are in the middle of a transformation, or even just starting, make sure to... 1. Encourage risk taking and experimentation. 2. Measure results. 3. Share your results and internalize learnings.

LEAD WITH EXPERIMEN-TATION

by Juan BerticheBusiness Hacker at Globant



3.PutDatato work

2.Eyes onthe prize

4.Keep talent alive


“When it is obvious that the goals cannot be reached, don’t adjust the goals, adjust the action steps.”Confucius 551-479 B.C.

People who write their goals are

42%

more likely to achieve their goal than those who don’tHuffPost

92%

of New Year resolutions fail by the 15th of January

Forbes

https://www.forbes.com/sites/ashiraprossack1/2018/12/31/goals-not-resolutions/#4c0bc3c53879

“The gap between plan and reality widens by the day.” John Doerr

https://www.academia.edu/38541961/John_Doerr_-_Measure_What_matters

"One-on-ones are the most important meetings on your calendar ... They help you build relationships, clear roadblocks, and solve problems."

Ken Nortonhttps://www.kennorton.com/newsletter/2016-07-12-bringing-the-donuts.html

https://www.huffpost.com/entry/the-power-of-writing-down_b_12002348





https://www.kennorton.com/newsletter/2016-07-12-bringing-the-donuts.html



1. As a company, what direction we would like to follow and where should every area/department focus their efforts? (Objective)

2. How will we know, in a concrete way, if we are doing well in that process? (Key Results)

3. What initiatives should we plan, change, or disregard along a given time-period to achieve our Key Results? (Initiatives)

THERE ARE MORE FRAMEWORKS THAN STARS IN THE SKY, RIGHT?

And there will be more coming. The challenge is not finding the “right one,” but rather to change your team dynamic to just a few core concepts, practices, and behaviors. Combined with the frameworks, these key concepts allow us to accomplish goals at scale and in a defined timeline.

For example, OKR is a well-known management system (used by Google ever since they started with a small team, growing to 100K+ people around the world) that helps us answer some basic questions, such as:

What powers this process- oriented management model is that you can shape team behaviors that can position you in the ranks of doers. Doers not only define a strategy but also are able to succeed in the implementation.

Main concepts that OKR develops in our teams:

● #Transparency: As strategic objectives and key results from every level of the organization are going public and keep growing, every team member is aligned on both priorities and how they contribute to the final goal.

● #Autonomy: This model empowers teams and gives autonomy to propose, or decide how to achieve, their objectives. Autonomy lets teams set the key results that will best allow them to conquer the objectives.

Lisandro PuglieseBusiness Hackerat Globant

Eyes onthe prize

● #Ownership: By the time each team defines their key results, the model has not only fostered accountability, but also motivates the team to pursue the milestone they set.

● #Learning: Learning occurs mainly during the execution of the objectives. The teams then figure out, with each different initiative, how their decisions did or did not impact the pre-established key results.

This all sounds great, doesn’t it? Still, the most important tip is this: be patient and resilient, this is a multi-quarter journey (expect at least 5-7 quarters). It will bring friction, detours from the goals, and all kinds of resource consumption. BUT, by the end, you will have laid the groundwork—these core principles will allow you to implement of a vision or strategy, and will change the way you work in order to

build a company of co-owners and doers.

Make your teams co-owners of company goals, and let them figure out by themselves how to achieve them.

Make your teams co-owners of company goals and let them figure out by themselves how to achieve them. Provide ground rules to align across teams, have one-on-one conversations with leaders about progress (focused on what you learned during implementation), and make information a public asset even if it doesn’t make your team look good.

Eyes onthe prize


3.Put Data to work

2.Eyeson theprize

4.Keep talent alive


“Data, Data, Data!” he cried impatiently. “I can’t make bricks without clay!”

– Sherlock Holmes, The Adventure in the Copper Beeches

Data-driven companies report a 20% to 30% percent increase in EBITDA gains.

Gartner predicts $2.9 trillion in new business value opportunities attributable to data by 2021.

Gartner anticipates the ability to recover 6.2 billion hours of worker productivity automation and data strategy.

https://www.gartner.com/en/newsroom/press-releases/2019-08-05-gartner-says-ai-augmentation-will-create-2point9-trillion-of-business-value-in-2021

https://www.bcg.com/publications/2017/digital-transformation-transformation-data-driven-transformation.aspx

https://www.gartner.com/en/newsroom/press-releases/2017-12-13-gartner-says-by-2020-artificial-intelligence-will-create-more-jobs-than-it-eliminates



Invest in data and you will be rich. If you don’t, you will be left wondering, “what did I do wrong?”

Put Datato work

Whether we are talking about a company linked to the finance or professional services industry, the transactionality of their operations each day generates huge volumes of data.

Due to regulations, many times the data has to be stored for extensive periods of time just in case it’s needed to perform any sort of control. Storing this data is not free, and implies a cost that includes (but isn’t limited to) physical space, storage hardware, software licenses, and even the certification required for data centers to be GDPR-compliant. That’s how people often look at this data: a necessary operational cost.

Is this all this data can be for an organization? In our experience, it’s just a question of perspective. Most people look at this data under the effects of inattentional blindness. The video of the “invisible gorilla” made this concept famous: a person dressed as a gorilla passes undetected through a group of people passing a basketball.

Dust off your dataMost people look at data under the effects of inattentional blindness.

Agustin HuertaStudio Partner ofAI and Process Automation Studios at Globant

In this case, looking at data under the magnifying glass of traditional business needs, understanding it merely as necessary for regulatory compliance, ignores the innovative possibilities and keeps us from seeing it’s true potential value.

The first step necessary in order to see the “invisible” value is to ask:

● What’s the origin of the data? ● How could it help improve the

efficiency of an operation? ● What sort of impact might the data

have on the business?

We’ll look at these questions in depth in a minute. Being conscious of all this will allow us to think about whether the data can enrich the process or operation from which the data came. At that point we can start thinking about products linked to the data.

Put Datato work

THE ORIGIN OF THE DATA

Knowing how the data is being generated can really help improve the processes that make use of it. This understanding can either fill in knowledge gaps or enrich the original corpus with new or external data. Once you know where the data comes from, it’s also possible to review the relevant regulations to get a better grasp of lawful usage for the data.

The origin of the data helps you understand experiences, regulations, and volume.

In addition, this knowledge is the cornerstone of estimating how much data could be generated and collected on a regular basis, making it possible to evaluate the feasibility and—ultimately—designing proper analytics platforms and AI engines.

HOW TO IMPROVE EFFICIENCY

DATA’S IMPACTON BUSINESS

Really out of the box

Put Datato work


Once you have a clear understanding of the origin of the data, you also get to know which of your operations are involved.

Then you can outline plans to improve these processes.

Bear in mind that such improvements could materialize in the form of cost reductions, increased customer satisfaction, greater customer fidelity, or new revenue streams generated. These are just some of the many ways that data can streamline and boost your organization’s efficiency and innovation.




Put Datato work


It’s important to keep in mind that the improvements should be measured with appropriate KPIs and work on initiatives to satisfy them accordingly. For example: if the data I’m capturing can be used to improve my customer support by building a chatbot, I should definitely have a KPI that measures how many fewer calls I get by phone for support.

Otherwise I will be missing out on a very important dimension: having met my client’s needs.

As a part of our Data-Driven Discovery, we’ve helped large organizations be able to incorporate the value of their data into their operations. This yields products that continually allow them to improve the loyalty of their customers and generate new revenue streams.




Put Datato work

4.Keep talent alive

2.Eyeson theprize


3.Put Data to work


“Talent wins games, but teamwork and intelligence win championships”Michael Jordan

62%of employees wish they knew their coworkers better

33%of disengaged employees attribute that to lack of recognition

72%of employees are unsatisfied with their organization’s feedback process

23%of employees, even at purpose-driven organizations,describe being disengaged

https://www.bpir.com/employee-motivation/menu-id-71/research-data.html

https://mkt.globant.com/2019/powering-a-people-first-culture

https://www.inc.com/adam-vaccaro/purpose-employee-engagement.html




Elevate every team memberto protagonist status!

Keep talentalive!

We all yearn for that feeling of really adding something to our teams. Let’s go over the necessary elements for this to become an integral part of your culture.

Talent can make or break a company. It’s a twofold challenge: attracting the right talent, and keeping your employees engaged. The right kind of company culture is key to achieving this goal.

Culture takes many forms. At Globant, we’ve always focused on fostering interdisciplinary and diverse connections, crossing abilities and mindsets. This lends autonomy, which empowers talent and naturally makes way for co-creation.

Companies can do a better job at increasing employees’ autonomy. This way, at crucial moments, employees will feel affirmed in their value to the company rather than put down. In our recently published report, “Powering a People-First Culture,” we found that 24% of employees left their previous job because they didn’t feel appreciated.

ENGAGING TALENT WITH A CULTURE OF CO-CREATION

According to Gallup, when taken together, the behaviors of highly engaged business units result in 21% greater profitability.

But in addition to feeling truly validated, employees today also need to feel that they belong. When? Consider these “moments of truth” (from Gallup) for fostering belonging:

1. when they propose a new idea2. when they ask for help3. when they push back on

something4. when they ask for a personal

favor

These could also be the most powerful moments to tie employee achievements to company values, covering the need for both recognition and belonging. Through StarMeUp, for example, organizations can create a culture of powerful, real-time recognition. When recognizing an employee for representing company values, you are able to measure how much your culture is really taking hold. And if it’s measurable, it stands a good chance of being evident. That looks like a culture of co-creation to me.

by Santiago GrecoBusiness Hackerat Globant

Keep talentalive!

https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspxhttps://mkt.globant.com/2019/powering-a-people-first-culturehttps://www.gallup.com/workplace/232958/bring-best-people-company.aspx

https://www.gallup.com/workplace/236366/right-culture-not-employee-satisfaction.aspx


https://www.gallup.com/workplace/232958/bring-best-people-company.aspx

5.Think way outside the box

3.PutDatato work

2.Eyeson theprize

4.Keep talent alive


“Learn from mistakes of others. You can never live long enough to make them all yourself”Eleanor Roosevelt 1884-1926

Most decisions should probably be made with 70% of the info you wish you had.

“There are over 7,500 business incubators around the world. Most of them

FAIL.”

By introducing gaming elements to medical products, patient satisfaction

rose 90%

“Bureaucracy costs the global economy more than $9 trillion in lost economic output each year.”

54% of CxOs expect that competition will come from other industries!https://hbr.org/2013/08/the-problems-with-incu

bators-a

https://thisisdesignthinking.net/2014/12/changing-experiences-through-empathy-ge-healthcares-adventure-series/

Gary Hamel and Michele Zanini, in Humanocracy: Creating Organizations as Amazing as the People Inside Them.

https://www.consultancy.uk/news/3081/ibm-cross-industry-innovation-top-concern-for-cxos

https://blog.aboutamazon.com/company-news/2016-letter-to-shareholders

https://hbr.org/2013/08/the-problems-with-incubators-a

https://hbr.org/2013/08/the-problems-with-incubators-a




https://www.consultancy.uk/news/3081/ibm-cross-industry-innovation-top-concern-for-cxos



Your organization is no longer competing with a product or service from your same industry. Your competitor might be a bookstore (not a mom-and-pop, but a bookstore indeed), or maybe an electric car company. Even though you don’t sell books or manufacture cars, your whole competitor landscape has widened exponentially, with new technologies that are enabling new businesses by lower barriers to entry.

BLURRED LINES

Your competitor landscape is completely different. So, why are you leveraging the same 10 best practices from the industry you have used for the past several years? Why are you looking for talent in the same place as always? And why are some companies treating their customer the way you have for the latest 15 years? Let’s at least expand the box you’re working with, even if you find it too complicated to think outside of it.

Then you can learn and try to react to customers’ and employees’ needs faster.

Let’s review some of the tools and methodologies at your disposal, to take on your true competitors.

1. Experimentation as a service2. Cross-industry innovation3. Agile management

Industries that used to have nothing to do with one another are now integrating because of consumers’ and employees’ needs and wants. Technology and data are the key enablers for these integrations.

Alvaro PujalsBusiness Hackerat Globant

These new challenges bring new capabilities your organization needs to strengthen.You need to look further than your own industry’s best practices, and be able to locate the next practices. They are likely in another vertical, important in order to keep learning from others’ experiences, mistakes.

Think wayoutside the box

WHO IS DOING THIS?

Waymo, the self-driving car company under Alphabet, has been testing in Phoenix for several years now. And while it might seem like the ideal location, there are times when the desert becomes a challenging place for any driver — human or computer.

Early in their program, they made the decision to test in multiple cities to ensure that the vehicles would learn and perform safely in various weather conditions

EXPERIMENTATION AS A SERVICE

Build, test, and deploy. It doesn’t sound so complicated, right? Actually, it is… when you want to scale to a billion people and perform at the highest standards.It’s critical to be able to come up with a hypothesis and test your ideas in a controlled environment, but with real users.

Because if you do this in a vacuum, you might be forgetting key features.

This is why it’s important to work on developing an experimental culture within your organization. A culture that’s able to scale, iterate your experiments, and reduce risks when defining your roadmap.

But what’s more, you need a culture that is able to learn from and embrace honest mistakes, instead of floundering in a lack of transparency.

CROSS INDUSTRY INNOVATION

LESS MANAGEMENT IS MORE MANAGEMENT


Source: https://waymo.com/

https://waymo.com/

WHO IS DOING THIS?

One of the first examples of a bank adopting Internet of Things, ASB Clever Kash is a piggy bank in the shape of an elephant.

This allows parents to transfer money into the child’s bank account, while showing the balance updates on the toy’s screen. In a cashless society, this product helps make the digital money experience tangible for kids.


What do the gaming and medical industries have in common? What can the NBA learn from the CPG industry?

Cross-industry exposure can accelerate learning, reduce time to market, and improve your team’s sense of empowerment.

Companies must address cross-industry customer journeys to better understand their customer path in order to locate further opportunities that can expand their product/service offering.

The challenge is two fold: this is not a one-time process. It should be an orchestrated activity that your organization executes periodically. And this demands a new type of partnerships or agreements with companies that interact with the same consumer.




Source: https://www.asb.co.nz/banking-with-asb/clever-kash.html

https://www.asb.co.nz/banking-with-asb/clever-kash.html

WHO IS DOING THIS?

At Globant, we are leveraging StarMeUp Operating System to promote autonomy by publicly recognizing behaviors of each employee aligned with our vision, and privately giving feedback where there is an opportunity to better align with this philosophy.

We also take advantage of an inverted pyramid structure, where are our leadership is at the service of the organization. Not the other way around. This makes sure decision making is swift and valuable.


How much time do you invest in managing your organization?

Think of the amount of hours and meetings that team leaders, department heads, and your leadership devote to supervising people’s work. Consider the number of committees who have to approve something before making a big decision.

Most managers are hardworking and want change; the problem doesn’t lie with them.

The inefficiency stems from a top-heavy management model that is both cumbersome and costly, that requires a high level of confidence to make a decision, when digital ready companies can make a decision with less information, because they have greater ability to course-correct if needed.



Leadership

Management

Pods

Studios


https://os.starmeup.com/

https://os.starmeup.com/

5.Thinkway outside the box

NOW GET TO WORK!

These are actionable insights. Don’t let them sit at your desk, put them to work.

3.PutDatato work


2.Eyeson theprize

4.Keep talent alive

There is so much more you can do with these insights!

We are a team of professional researchers, designers, and subject-matter experts that put knowledge into action. We create strategy reports and envision scenarios that help build a strategy for the future. Contact us at [email protected] and take the next step into a more insightful strategy.

SENTINEL REPORT

mailto:[email protected]

Emiliano HorcadaEDITOR

Carolina Dolan ChandlerEDITOR

Nicolás ZubíaDESIGNER

Anna Shalom Beck DanusiarEDITOR

Paula MonroyEDITOR

Juan BerticheBUSINESS HACKER

Lisandro PuglieseBUSINESS HACKER

Gonzalo ZarzaDATA SCIENTIST

Santiago GrecoBUSINESS HACKER

Alvaro PujalsBUSINESS HACKER

THOUGHT LEADERS

Agustin HuertaA.I. STUDIO PARTNER

DISCLAIMER

This Report is intended for informational purposes only, based on information available in public domain. Whilst the information provided has been obtained from sources believed to be reliable, neither Globant nor any of their affiliates, directors, neither officers nor agents attests to its accuracy or completeness.No representation or warranty, express or implied, is made regarding the completeness, accuracy, timeliness or suitability of any and all information and data contained within any part of the Report. Globant shall in no case be liable for any direct, indirect, incidental, special, consequential or exemplary damage or loss (including, without limitation, loss of profit), which may arise or derive directly or indirectly from use of or reliance on the information contained in this Report. All information contained in this Report is subject to change by Globant without notice. Prior written approval of Globant is necessary to reprint or reproduce in whole or in part this Report. All contents, text, images, data, information and other materials displayed, including any Globant trademarks or copyrights, are the property of Globant or the designated owner and are protected by applicable laws.

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