Welcome!

@ThingsExpo Authors: Ed Featherston, Liz McMillan, Xenia von Wedel, Jason Bloomberg, Yeshim Deniz

Related Topics: @ThingsExpo, Java IoT, Mobile IoT, Linux Containers, Agile Computing, @DXWorldExpo

@ThingsExpo: Article

Code Halos Strategies, Retailing and Digital Disruption

The struggles of traditional retailers

Retailing has always been hard, but it is getting even harder. Brick and mortar stores are struggling to get people into their buildings to see and buy their products. Even when customers enter the store and look at the products, they often reach for their smartphone to check prices and opinions from other locations on the Internet. Retailers are being digitally disrupted in all kinds of ways. In many cases this disruption is via mobile devices, but that is not all of the story.

Amazon is often listed as the top digital disruptor in retailing as they are gobbling up market share in all kinds of categories. Today, they announced their own smartphone. Why? The smartphone is a data generation engine. It can provide massive amounts of data about you, your location, browsing, shopping and research interests.

My colleague, Peter Abatan has been pondering the struggles of traditional retailers and shares his insights with us here.

Recently, Tesco announced a third consecutive quarterly drop in profits and suffered its worst slump in 40 years, similarly, Sainsbury's announced its second consecutive quarterly drop. Having lived in the UK for a considerable part of my life, and being a holder of loyalty cards from both grocery chains, I wonder if these supermarkets really understand who I am, and what I like to purchase? I also ponder why it is so difficult for these behemoths to connect with me on a social level?

If ever a business or organization should be at the forefront of personal Code Halos strategies, it should be Tesco and Sainsbury's. Code Halos strategies are the information that surrounds people, organizations, and devices. Every click, swipe and view, every interaction and transaction generates a halo of code that's robust, powerful, and rich with meaning and insight. The data they hold on an individual is enough to make some basic assumptions about that person, giving them the opportunity to upsell or down-sell products and services depending on their spending patterns. For example, what a person buys can help determine whether the person lives in a one-person household or a multiple occupant household. It can indicate whether a person has realized a rise in income or an economic set back by the type and quality of products purchased. Purchases can hint at birthdays, weddings, babies, religious practices and holidays, and ethnic food preferences.

These economic trends associated with the individual can enable these grocery chains to help the customer stay loyal, by targeting special offers and deals specific to that customer's needs. For example, these grocery chains can offer a product regularly purchased by the customer, as an occasional treat to help retain loyalty. As the price cut chains like Lidl and Aldi continue to eat away at the market share of the big five in the UK, the survival of the fittest will depend on these grocery chains maximize the use of personal Code Halos to their advantage in order to engender loyalty from their customers.

I shop at any of the big 4 grocery chains because I feel none of them do really understand who I am as a customer. I have come to the conclusion that it is the ability to create a relationship with the customer that is essential to engendering loyalty. If Tesco can say to me, "Mr Abatan, we noticed that you bought the ingredients for a coconut cake, did you know that apart from making a coconut cake you could also make coconut flavored bread and here is the recipe to make it." Now that is a relationship that could last for a very long time. Another example is, "Mr Abatan we noticed that you have not bought petrol from us for a while. If you do so before the end of the week we will give you £4.00 off your next purchase."

Code Halos are about using technology to enhance relationships with the customer and to help the organization to grow in the midst of very stiff competition. There are supermarkets like ASDA that do not use loyalty cards, and use demographics to determine what products will sell in a particular area, and which ones would not. Cut price supermarkets like Aldi and Lidl probably use the same model, but I believe this is not sustainable. They all have to start to understand the individual customer and their needs, likes and dislikes.

By understanding my Code Halo, supermarkets can specifically target products that meet my needs. For example superfoods that can help me lose weight or run faster. It can begin to understand when I am likely to run out of a product and generate a shopping list that ensures that I do not forget something essential next time I visit the supermarket. These grocery chains need to connect with their customers via social media if they are to understand what their likes and dislikes are because it all goes towards understanding the personal Code Halo of every single customer.

Loyalty cards like Nectar for Sainbury's, Clubcard for Tesco and the latest edition myWaitrose by Waitrose are a great start, but these businesses need to recognize and fully understand every customer's personal needs and find a way to connect with those needs one customer at a time. As Malcolm Frank et al state in their book titled "Code Halos", "We can find meaning-making potential almost everywhere; the information surrounding every individual, product or organization is fantastically rich with clues and cues about past behavior, current needs and future possibilities". The authors go on to say ""Decoding" your customers' Code Halos - understanding in fine-grain detail who they are and what they value - is becoming the new way to win in business."

There is no doubt that Code Halos are now transforming all our lives and the lives of organizations as well. It will help us to achieve our goals faster, more efficiently and in a non-intrusive way. In essence, grocery chains need to think differently beyond price cuts and price wars, and begin to build solid meaningful relationships with each customer one-at-a-time.

Reference:
Code Halos: How the Digital Lives of People, Things, and Organizations are Changing the Rules of Business by Malcolm Frank, Paul Roehrig and Ben Pring.
(Published by Wiley 2014)

**************************************

Kevin Benedict

Writer, Speaker, Editor

Senior Analyst, Digital Transformation, EBA, Center for the Future of Work Cognizant

View my profile on LinkedIn

Learn about mobile strategies at MobileEnterpriseStrategies.com

Follow me on Twitter @krbenedict

Browse the Mobile Solution Directory

Join the Linkedin Group Strategic Enterprise Mobility

Join the Google+ Community Mobile Enterprise Strategies

Recommended Strategy Book Code Halos

Recommended iPad App Code Halos for iPads

***Full Disclosure: These are my personal opinions. No company is silly enough to claim them. I am a mobility and digital transformation analyst, consultant and writer. I work with and have worked with many of the companies mentioned in my articles.

More Stories By Kevin Benedict

Kevin Benedict serves as the Senior Vice President, Solutions Strategy, at Regalix, a Silicon Valley based company, focused on bringing the best strategies, digital technologies, processes and people together to deliver improved customer experiences, journeys and success through the combination of intelligent solutions, analytics, automation and services. He is a popular writer, speaker and futurist, and in the past 8 years he has taught workshops for large enterprises and government agencies in 18 different countries. He has over 32 years of experience working with strategic enterprise IT solutions and business processes, and he is also a veteran executive working with both solution and services companies. He has written dozens of technology and strategy reports, over a thousand articles, interviewed hundreds of technology experts, and produced videos on the future of digital technologies and their impact on industries.

@ThingsExpo Stories
BnkToTheFuture.com is the largest online investment platform for investing in FinTech, Bitcoin and Blockchain companies. We believe the future of finance looks very different from the past and we aim to invest and provide trading opportunities for qualifying investors that want to build a portfolio in the sector in compliance with international financial regulations.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
Smart cities have the potential to change our lives at so many levels for citizens: less pollution, reduced parking obstacles, better health, education and more energy savings. Real-time data streaming and the Internet of Things (IoT) possess the power to turn this vision into a reality. However, most organizations today are building their data infrastructure to focus solely on addressing immediate business needs vs. a platform capable of quickly adapting emerging technologies to address future ...
We are given a desktop platform with Java 8 or Java 9 installed and seek to find a way to deploy high-performance Java applications that use Java 3D and/or Jogl without having to run an installer. We are subject to the constraint that the applications be signed and deployed so that they can be run in a trusted environment (i.e., outside of the sandbox). Further, we seek to do this in a way that does not depend on bundling a JRE with our applications, as this makes downloads and installations rat...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
The IoT Will Grow: In what might be the most obvious prediction of the decade, the IoT will continue to expand next year, with more and more devices coming online every single day. What isn’t so obvious about this prediction: where that growth will occur. The retail, healthcare, and industrial/supply chain industries will likely see the greatest growth. Forrester Research has predicted the IoT will become “the backbone” of customer value as it continues to grow. It is no surprise that retail is ...