Northrop & Johnson boosts sales and marketing efforts with Dynamics 365


(light music) – The super yacht, it’s
the ultimate lifestyle. You have to have the time
and the money to enjoy it. You can go wherever you want. You can do whatever you want. You have your floating, amazing
five-star property with you. There’s nothing like it. It’s is the epitome of ultimate
luxury and satisfaction, to create memories for
you and your family. So, the level of wealth that
we’re dealing with in this particular segment is,
uh, is extraordinary. – It’s a very small and targeted market that we’re going after. And so, all of our
marketing has to be spot on. We don’t have a chance to have a mistake. We need to make sure everything’s
completely personalized, the right message at the right moments, to really have impact on our clients. We’re about quality over quantity with our marketing efforts. – It’s trust, it’s personalization
and it’s innovation. Those are the three areas that we tend to focus on quite a bit. One of the areas that we really heavily invest in is technology. We really started looking at certain areas and how we can improve, how
can we get the entire ecosystem under one banner, and that’s
why we chose Microsoft. – Dynamics 365 was an easy choice. We initially moved to Dynamics
365 Marketing and Sales because we used a whole
suite of different services; for email, for event
planning, for social media, for landing pages and other services. Eight or nine different
systems that were all not connected at all. Then to go to a full suite
where it’s all just one system that’s fully integrated with our CRM data is absolutely amazing. Dynamics 365 gives us the ability
to see as soon as a client first comes to our website
and interacts with a form or they’ve clicked one of our emails, and then we get to follow
them and score them on how much they’re
interacting with our business. And that really gives
us a lot more insight into our customer journey, which we didn’t even know before. For our salespeople to be able
to go and see all the sales insights and all the analytics right there in their contact records is huge for them. The insights provide our
sales people with knowledge that nobody else has. This is a competitive advantage for us. – We have systems in our disposal, that no other brokerage
house has, it’s everything. Especially when you’re dealing
with clients at that level. They wanna know that
they are taken care of. Sometimes you get very few
minutes with them, you know, they’re very busy individuals. If you mess up and
you’re not fully briefed, it could cost you a sale. So, having it at the palm of
your hand and having a system that connects the entire company no matter where you are is huge for us. With Dynamics 365, we’ve
tripled the company in any KPI, whatever you wanna measure it on. We pretty much tripled everything.

The Project Economy: What it means for the world, business, and you | European CEO


European CEO: I’m with Sunil Prashara, President
and CEO of the Project Management Institute. Sunil, as part of Project Management Institute’s
renewal, you’ve launched a new focus on what you’re calling the Project Economy; what do
you mean by Project Economy, and what does it mean for organisations moving forward? Sunil Prashara: Yeah, so, project economy
for us – there’s two definitions. There’s one at the individual and corporate
level, and there’s one at a, sort of, global level. And I think it’s a cause-and-effect. You know, there’s a lot of big things that
are happening around the world, which are resulting in the countries in those parts
of the world changing. For example, in the Middle East: if oil demand
is declining, and alternative energy source demand is increasing. If you’re an oil producer, you might be thinking,
‘Well okay, I’m probably good for the next 50 years, maybe even 100 years. But I do need another story. So how do I go out and build another story?’ And they’re pushing very hard in alternative
energy sources, healthcare, tourism. Changing what each of those companies wants
to be, to maintain their GDP, and maintain their relevance in the marketplace. That causes in that company a change. A project. So the world is becoming projectified, because
of these tectonic shifts. You could say the same thing in Africa; I’ll
give you another example. 2050, the population of Africa is expected
to be 2.4 billion people. It’s 1.4 billion today. They have to build 65,000 homes a day, every day, for the next 30 years to accommodate those people. How many hospitals?
How many schools? How many roads?
Who’s going to do that? How’s that going to happen? And which countries are going to be relevant
when that happens? That is a huge amount of project work. So if I’m an organisation, and my government
is saying that in order for me to be relevant, I need to change the kind of services that
I provide: that’s a transformation, that’s a change. We believe that organisations are going to
have to really rethink the way work is done in their businesses. So we’re seeing the world at the business
level becoming projectified. And we call that the project economy, where
you have teams of people moving between functional areas, without the boundaries of finance,
HR, legal etc. And the people you need in the organisation
should all be able to be well-versed in project management disciplines, and the ability to
execute. Because they’re going to be called upon to
do that, moving from project to project to project. European CEO: Now, what skills do project
managers – and if everything is being projectified, professionals in general – need in order
to thrive in the project economy? Sunil Prashara: Well you definitely need to
have a very strong understanding of technology. Technology is helping project managers and
other professionals to optimise the way they do their work. So leveraging technology, leveraging big data
to give you insights as to what your next step and decision should be. We call it the technology quotient; not necessarily
being a software developer, but having an appreciation for how technology can help you
is very, very important. When you look at specific skills, you still
can’t run away from scheduling, planning, iterative processes for development, governance,
risk management. You know, you also have to be able to pick
the right methodology for how you execute on a programme, on a project. The third skillset is empathy. And here’s something that technology really
can’t get its arms around. Professor Tabrizi from Stanford University
calls these the power skills. They used to be called the soft skills: empathy,
cultural awareness, ability to be able to say ‘sorry.’ The ability to be able to be human. A few years ago, these were soft skills, and
the hard skills were, can you create a Gantt chart? Can you do an Excel spreadsheet? Can you manage a month end close? Concrete things which today are automated,
systemised, codified. And those softer skills are now being called
the Power Skills. They’re the things that make things happen. So these are some of the skills that we advocate
as PMI. You have to have an appreciation, an understanding
of the hard skills. You can’t get past home base without that. But what makes you stand out is when you have
the softer skills, or the power skills, to be able to make things happen. Sunil, thank you very much. Thanks for watching. Click now for more from Sunil, on how technology
is changing project management and strategy implementation. Learn more at pmi.org, and please subscribe
for the latest business, finance, and strategic insights from europeanceo.com

Transform your business with Azure migration


[MUSIC].>>At Albertsons Company, we have invested very heavily in our digital platforms to meet the changing requirements
of our customers. We have transitioned all of our customer facing
applications into Azure.>>We were able to bring our own
architects and engineers and our DevOps teams
working together with Microsoft to come up with
a plan on migration.>>Last quarter we grew a huge amount and we are
excited about this hypergrowth. Our Microsoft partnership, it helps us leverage their innovation
to power our growth. [MUSIC]>>H&R Block has a storied history. The tax industry has evolved
tremendously over the last 60 years.>>We knew that Cloud migration was important. We needed to modernize.>>It is very critical that we pick our data platforms with scalability, high availability, and security. That’s a big impact of the business. We serve almost 20
million tax returns using our DIY and Appointment Manager applications,
which we are running in Azure.>>Migration to Azure has really
helped us accelerate our journey. [MUSIC]>>The pH scale was
invented at Carlsberg. We are a beer science company. We wanted to get a really
scalable, efficient, secure, lower-cost IT to come up with a digital solution to market
at a much faster scale. The Cloud migration was a way to
streamline and clean up our IT.>>We went for Azure for SAP,
because of the track record. What we have is now a foundation
that will allow us to scale all of the solutions
across every market, across every region in Carlsberg. [MUSIC]

PMI: There’s a lot of work to be done in the discipline of transformation | European CEO


European CEO: The Project Management Institute
turned 50 this year! The milestone has seen the organisation adopt
dynamic new branding, and a re-energised approach to supporting project management professionals. And, of course, the new President and CEO
of PMI, Sunil Prashara, who’s with me now. Sunil, of course the trend that won’t stop
trending is the way that technology is changing the way that businesses operate and deliver
value; what are the most significant examples of that you’ve seen, as head of PMI? Sunil Prashara: Yeah, I think that it goes
without saying that technology’s having a profound effect on businesses. Technology is driving competition, it’s driving
new entrants into the market across multiple sectors. But not only that – I mean, technology is
also being used internally in organisations to optimise. And needs to. Why? Because you’ve got things like robotics, automation,
that’s changing the way work is going to be done in the future. You even have now cognitive technology like
AI, which is complementing the work that humans do. So the way work is going to be done in the
future is changing. Organisations are having to look to say how
are we going to operate in a world which is part technology, part human? How do they interface between themselves? How do we use that capability to be able to
create competitive edge in a world that’s highly disruptive? You know, at the end of the day, transformation
is on the minds of most organisations that I talk to. And there are very few transformations that
actually deliver what the c-suite were hoping for it to deliver. So there’s a lot of work that needs to be
done in the discipline of transformation. European CEO: Now, what are some actionable
steps that businesses can take to transform their business models? Sunil Prashara: So I think the first thing
is, it’s great to have a methodology, and have a framework. There are a lot of frameworks that are out
there; there’s talk of agile, agility, there’s our traditional waterfall capabilities around
project management. And I think project management plays a very,
very important part in transformation. Because what is project management? It’s a capability that allows you to get things
done: take an idea, and make it into a reality. That is a really valuable skillset in this
world of transformation and change. So I think a lot of organisations are looking
towards the way work is done, and saying: how can we optimise that better? What skillsets do we need? What do our project managers need to be able
to deliver – over and above what they did traditionally. European CEO: You mentioned the disconnect
between the c-suite and the actual implementation of that strategy; what challenges do companies
face in implementing strategy, and how can they overcome them? Sunil Prashara: I think the very, very first
one that comes to mind is employee engagement. I think it’s very, very important that when
you’re going through a transformation – once you know what that transformation is supposed
to deliver – that you have engagement from your employees. They are the ones that are going to be impacted
the most, they are the ones that are going to implement the change for you, they’re the
ones who are going to have to live and breathe it. They are also the ones who are going to have
to adopt the changes that you’re going to make. So the number one thing I think is your employee
engagement. The second thing is a sense of urgency. Technology is moving very, very fast, and
most organisations look to reinvent or transform every 18 months. You may end up with a technology solution
to automate, systemise, codify a specific workflow or specific process. If you don’t get that in, the return on the
investment on that might be impacted by the next technology that comes in. So getting a return quickly, and having that
sense of urgency to make that work done, in the right timeframe, is very important. I think the third thing is discipline and
governance. And this is where the role of the project
manager comes in as well, because it’s a very complex thing to do – a transformation. You’re changing the DNA and mindsets of a
company – sometimes from a reactive to a proactive mindset, sometimes from a business
as usual way of working to an outcome-focused, metrics-driven type of organisation. Using technology where you can use
it, automating workflows where you need to do it. So I think having that empathy and experience
around that, the project manager can play a big, big part in managing the different
stakeholders, managing the technology components, keeping momentum and the sense of urgency. Managing empathy and engagement from all the
staff that are impacted. European CEO: Sunil, thank you very much. Thanks for watching. Click now to learn about PMI’s new focus
on what they’re calling the Project Economy. Learn more at pmi.org, and please subscribe
for the latest business, finance, and strategic insights from europeanceo.com

New Work, New Tools, New Rules | Full Keynote (English Subtitles)


Thank you for the introduction and thanks for inviting me. We had a long call prior to this and before we start I’d like to share a story with you, the story of my very first email. Can you remember your first email? I was reminded of my email when I cleaned up at home recently and found something: I have a penpal from Canada since I was around 11 years old. We are still friends today and have met in Canada; his name is Chris, he is also an entrepreneur, he never learned German unfortunately. Anyways, we are still friends today and I found this document from 1998, it started with ‘Dear Christoph’, Chris’s answer to me. And ‘did you get my last email?’ was his first question. Back then we sent us faxes and because email was new, we used a fax machine to check if our emails are being read. Today’s equivalent would be sending a whatsapp-message about our emails. Why am I telling you this? Because technology has always been my passion, especially the ways in which technology can change communication. I’ve never been able to describe this but even back in school I was already fascinated by mobile phones. Even though I got in trouble for having a mobile phone in school, I even had a girlfriend break up with me because I had a mobile phone, it was very unusual to own one back then. But I really liked being on school trips and still be able to organize things. Unfortunately Chris was my only friend who had email back then, I couldn’t convince my dad to get an email address too. So this is my passion which led to the creation of a company and I want to share some stories from that company with you today. Lots of content but I hope I can craft some good stories. I all it new work, new tools, new rules. It’s about the digital transformation but also the transformation of the world we work in. And because it sounded too boring in my opinion, I added ‘and why nostalgics have never won.’ If someone disagrees, please let me know of an example during the question session. There are no examples in history of nostalgics or a nostalgic attitude improving anything. I am not talking about preservers. We need them as well as innovators. I am talking about diehard nostalgics. You were so kind to introduce me as a former entrepreneur but I still am one. My two co-founders might argue because my hobbies are my podcast, which we started to share the many things which are happening right now. and we wanted to share our experiences. We interview people like Facebook’s director of marketing, students who have founded a company, entrepreneurs, politicians, people from all walks of life. People who deal with new work and the digital transformation who are open to share things in a transparent way, not just the sugarcoated version presented to the general public. The podcast and the videos I make have become more than just a hobby, it has almost become a full-time job. It is an important resource for learning for us and we want to share it with others and will continue to do so as the community is still growing. Just to be clear, my core business is digital transformation. If people ask me what that is, there’s 3 fields who are effected: The business model that is becoming more digital every day, it’s a challenge for everyone. Then we have the customer experience, your inside app is only for internal use but still a good example. It is still an app that changes things. Another example is Uber vs. MyTaxi: People who use Uber know, they don’t have to anything when they arrive, just get out of the car and say goodbye. You don’t have to pay right then, or get your money out, pay, then get receipts to turn in to accounting etc. The third field is the digital transformations of operations, the operative processes. Things like process flow, communication inside the company, new work etc. This third field is our bread and butter. If you want to ask questions later, via the QR codes which you can just scan you can ask me questions and we will discuss them, as the CEO I should at least in theory be able to answer all relevant questions. So just ask away at the end. On our way to here we took the bus, it looked like this – we could save the flights when we travel with many people. I was thinking about what could help you. So I rewrote my presentation after our call and I want to give something so that tomorrow you can say to yourself: ‘This is something I can do differently now!’ I remembered a guest from my podcast who is 75 years old now and who was there when Nixon left the White House and Gerald Ford became president. The man who I met was 29 years back when all of that happened. And he was in the room when Nixon came and said: From this day on he was the White House Appointments Secretary My hairstyle and his are just a random coincidence. I was hiking at the Tegernsee and he was there for an event too. His name is Warren Rustand, 75 years old, 19 grandchildren… He told me many stories and I asked him : Warren, you have so many stories to tell, can we record a podcast? And he said: Yes of course, what is a podcast? We managed to explain it to him. And were sitting in a small hut, wearing sweatpants at the Tegernsee and recorded the podcast. I had many questions for him, ‘On his first days as president…’ and he interrupted me immediately and told me he can’t tell my anything about the CIA briefings. But I just wanted to know how they managed the transition and the immense number of events and requests How do you deal with that? Because a calendar is just a tool – a tool for communication and organisation. I assume everyone uses one daily, I asked him they managed their workload? I asked him for a specific reason: Warren was the one who developed the president’s appointment system which was used from Ford until Obama. His ideas were the foundation. Donald Trump uses this system for reasons unknown. Warren declined to explain further. What I wanted to know was how they dealt with the 300 invitations that President Ford got each day and how they organized his day. Just to compare: The boardrooms of Germany’s top companies will be paralyzed by 10 invitations per day. Every secretary will be busy with checking if the chancellor is there and if anyone else who’s important is there as well. and what they could talk about. 300 Warren said that the idea is simple: The calendar is a tool that shapes your behaviour every day. When I use a calendar in a way that I am the one being shaped, I become my calendar’s slave. One question: Who here feels like he is the undisputed master of his calendar? Not too many events, no unnecessary meetings, enough time to think. Who is the master of his calendar? Some catutious responses from the back. So listen to the podcast, episode 22, I am just telling you what Warren told me. And many other things well. Like their one day they reserved at Camp David to determine the president’s legacy. What he wants to leave behind. That’s not an easy task. And they used this legacy to set a priority. Priority is singular on purpose. Then Warren asked me what my priority is. And I didn’t know. I said Family He told me that’s a common answer. And then he asked me how I feel about sitting at the Tegernsee with him on a sunday, while my wife and my 3 week old newborn child are at home on the other side of Germany. I couldn’t give an answer. This was all live on the podcast and I like being challenged. Warren said the after the priority has been set, the calendar is split into three parts: 0-2 weeks forward the events are done in 15-Minute intervals. Exactly 15 minutes. 2-6 weeks forward the events are every hour, including briefings. And are then reduced to 15 minutes. And for events more than 6 weeks into the future, they are just assigned a daily slot. They still do it like that today. Obama is visiting Germany this week maybe you can see how it’s done in practice. Straightforward and easy to use. The important thing was the mindset: It’s a quote from the 70s, originally from Churchill, who said ‘we shape our buildings and thereafter our buildings shape us.’ Now it was: ‘We shape our tools and then our tools shape us.’ If we don’t invest the time to think about how we want to shape the tool, the tool forms us. Who here has a smartphone? Great, and who is the one who still has a Nokia phone? There’s usually one guy every time. Statistical probablities. To the smartphone users: Who of you has enabled the notifications? That means audio, visual or vibrating signals. Who has turned them on? What do you think, how many times do you look at your phone each day? Based on the average age of the people in this room I would say 80-100 times. My colleague behind the camera and the generation that is now 20-21 years old are more in the region of 200 times daily. MP you recorded your number once because people didn’t believe us. What do you need notifications for when you look at your device more than 100 times per day? Because we didn’t invest the effort of thinking about how we want to use the tool. And this is what I mainly want to share with you: We shape! How do we shape modern digital tools for communication in a way that supports a change of behaviour that makes improves our working life. That makes work easier and turns work into something that strengthens us instead of exhausting us. Because that’s the core of new work. That’s why we start with a look at the tools and some rules we work with. We also introduce tools, I will gladly answer questions about anything. And we will close with a bit about new work and mindset. Tools: There are two types of communication, asynchronous and synchronous. Asynchronous communication is written or read. Things like email and whatsapp. Not too long ago there were different tools, if you include the end of the 80s email was the new tool, and a big hit. Back when I was still in school we had a phone chain for when the teacher was sick. I’m not sure who remembers this, today this would just lead to a benign smile and a message in the whatsapp group. And a discussion about the next parents’ evening. For other tools you had the phone, meetings, the office, which is more of a synchronous communication tool. Synchronous communication is speaking and listening, the more emotional form. We broadly distinguish between those two sides. Today’s problem with thousands of communication tools, I can send emails, send a fax, letters, company mail, to video conferencing which never works, phone conferences which always start late, there’s a huge number of tools. And people try to improve with Office 365 or GSuite, Slack, WhatsApp etc. What people often forget, however, is that our brains take longer to process some things and are quicker at processing other things. On the side of asynchronous, reading or writing, which is faster? read or write? Louder please? Reading – yes, reading is significantly faster, on average 4x as fast as writing. No matter how fast you are able to write, you can read really fast. Speaking and listening? Depends on who is speaking of course. Unfortunately we are twice as fast at speaking than at listening, if we want to comprehend. The brain is very fast at listening but comprehending takes time. This leads to problems. I don’t know how your meetings I run so I will just use examples from an anonymous company. We are too lazy to prepare for the meetings because you’ve seen that writing takes time. Because the meeting starts late we talk quickly. Noone understands what we wanted to say. But thankfully we have a new intern who takes minutes and uploads them on drive G: for everyone where it is then forgotten. As I said, a random example for a random company which is is not yours. But examples like this are why every new employee has to learn about the matrix. It’s one of the basic tools to understand why communication fails in so many companies. There are of course many tools to add. We are talking about digital operations. It’s my strong suit which is why I’m talking about it. Based on experience from more than 150 podcast episodes, videos, projects. these things will always work. Three things always work no matter what the tool is called. The first is group communication, the second is concept communication and the third one is unplanned communication. Group communication: who is a member of a whatsapp group? Who here feels like that group never stops getting new messages? Who is the one responsible that you are still in this group? Your are, correct. That’s why we talk about behavious so much. Why do I use Whatsapp as an example, considering it’s not totally legal to use it for business puposes? It has of course replaced the sms, the Telekom has earned more than 4 billion € from SMS until Whatsapp came and killed it. Everyone uses WhatsApp, even the board members. It has changed group communication tremedously. Another example is WeChat, the ‘chinese copy’ of WhatsApp. Those of you who work in China know that over there only Germans use email still. You have to have Weixin to get any work done. Everything, private or business, is done via Weixin. They us it for payments, messaging, join work groups and leave them again. In the background you can see the new company HQ of Tencent, that’s how big they have become. Why do I share this? Because it changed our private communication forever. 20-30 years ago taking the new innovations of the business world back home was too expensive. Now, we are unable, for some reason, the innovation we use at home, even my dad is able to send voice messages and videos via WhatsApp, as well as live locations, we don’t bring them into the company. We struggle hard doing that. Our business tools are Microsoft Teams, Slack, or other messengers. Because we don’t understand that this form of communication increases the speed of communication enormously. It brings both sides of the synchronous/asynchronous matrix very close together. Voice messages are one example. Some people absolutely hate them. For these people, it’s the biggest waste that was ever invented. Of course, everything longer than a minute is a podcast and not a voice message. However, listening to a voice message lets me hear the voice of my colleagues. I immediately know what kind of mood my colleague is in, just by listening to his voice. Is he sick, does he have or good or a bad day? Noone wants to know how I fell – they do! If you work closely with some, of course you are glad to hear his voice on mondays. But not via a phone call at 8:30 when I am busy bringing the kids to school, and my son throws up a fuss because he doesn’t want to take off his shoes. A phone call would be really annoying in this situation. On those mornings, being able to consume something asynchronous, which is also spoken, so something usually only done synchronously, is a huge boon. This greatly increases speed. It also creates transparency. Just an example from our Slack channel, doesn’t matter whether you use Slack or Teams or something else, This channel is called ‘The Situation'(nothing to do with Jersey Shore). where everyone sends a few short sentences about his upcoming day. Some will say that’s useless. But it’s not – just by reading a few sentences I know who is on the road, who is sick, who is doing a project, it makes leadership transparent. The challenge is in the way you lead. Because what you used to do behind closed doors you are now doing on a stage in front of others. That’s the big issue. We often see that leaders have no big problems introducing this form of communication because of takes pressure off of them. And it’s still a big task, when you introduce a new tool many people will say ‘that’s bullshit and never going to work’ that’s the muscle ache you get when you have to change your habits because of a new tool. We can talk about how we gauge the effects of this new style of communication whenever you want – there’s no reason not to introduce it. The only reason not to is clinging to your old habits. Email isn’t even a bad communication tool we just transferred fax to email. Concept communication, what does that mean? If you go back to synchronous/asynchronous communication, a typical concept is creating a presentation. In Powerpoint. Probably the worst tool for concepts. The only thing worse is concept plans in Excel. Excel is not a painting tool just saying. Don’t do it. Concept communication. There are many tools you can use and I always have to try them out. This is my podcast partner Michael and me, passionately writing our book that we started two years ago, it will need at least another year. We wrote in one document together. Realtime collaboration is nothing new and has been around for quite some time. What’s the benefit of this? Let’s say I create a concept and write it down. And I ask people to proofread and share their thoughts. The classic workflow is to take the document, attach it to a powerpoint, attach that to an email, send it to three people and ask each of them for feedback. Then I get feedback from three people, each at a different time, and have to splice all of the answers and documents together on a saturday morning because it needs to be finished by monday. Someone please tell me where there was meaningful work done in this. In 2019. I can’t understand it. In my previous company we introduced realtime collaboration, that was ten years ago. And every time someone sent me documents as attachments I asked for a link instead because I couldn’t bear it anymore to read things like version 1, version 1.1, final version 2, master of final version 2. What the fuck. You couldn’t even search in the document. ‘Every new hire has 3 weeks where we explain our server structure, then you have to go to an employee has been here for longer than you and read up on everything. What? Why does still happen in 2019 when I can Google almost everything on my phone? I don’t understand. That’s concept communication. It doesn’t mean that everyone can read and comment about everything. But it needs to be possible to share things without having someone come into the office on weekends because he doesn’t have access. Unplanned communication – the source of innovation. Who knows the story of Steve Jobs at Pixar? After he left Apple and went to Pixar he tried to have all toilets set in one corner of the building. Because he noticed that people come into the office, hide behind their screens and try not to be seen on their way to the toilets. But there was no avoiding that trip. And on the way they met and talked about every possible topic the same as when getting a coffee or a water and eventually the conversations birthed innovation. This is what happens when people meet randomly and start to talk. The craziest ideas arise. This is how my podcast was created. We visited Harry’s in New York, the people who bought up razorblade companies in Germany. A successful startup dealing with razorblades. Razorblades as a subscription service. We checked out their meeting rooms and asked them why their seating was always behind the meeting rooms. And they told us that they found out that the most important conversations always happen right after meetings. That’s why there is always a place to sit after the meeting. People can sit down and continue their talks. Super simple. That’s how they fostered unplanned communication. This is also why we view the office as a tool for communication. One of the most important ones. In the digital age we need personal interaction more than ever. That also means that I’m not going to the office just to show up. In the office my task is interaction with others. Not to hide behind a screen. How do I foster unplanned communication in a digital space? This is where Facebook appears. With the introduction of the feed in 2009- who remembers StudiVZ (German Facebook clone)? You can read about it on Wikipedia now. Facebook introduced the feed in 2009, until then you had to visit your friends’ profiles. The feed was introduced relatively late. For the internet, the feed was the biggest invention since Google’s search engine Even if you don’t like Facebook, everything is a feed nowadays. The feed lets me discover things others have shared. If I use this principle in my company, it is possible to foster unplanned collaboration because there are so many contributions from others. And if I don’t get anything done I at least look at the feed. And I stumble upon topics like a coworker buying a car similar to mine and we get to talking. Some may say that’s not relevant to ‘business’ but it is because it directly leads to talk about projects, clients etc. This is how unplanned communication happens. These are the three formats group communication, concept communication and unplanned communication. What rules do we see when digital tools are used for fast communication? One thing we have noticed and you probably did as well, are couples sitting at a neighbouring table and both are busy with their phones. Or you are talking to someone but have your phone in your hands. I know you would never do such things but you have observed other people doing that. This is called ‘together alone – alone together.’ Our devices enable us to always be somewhere else. Andrew Huberman, a neuro-scientist from Stanford, explains why that is a very problematic thing for our brains. Because we lack the time, after a focussed work session to look relax, just stare into the distance and let our thoughts go. As a counterbalance to the focussed time at work. Because we immediately return to our screens. But our brains need time to regenerate. And this together alone, alone together problem is huge. Most people who try to change their business culture try to reduce the notification overload that usually happens because people are not trained correctly. An analogy would a football team setting up a training session, handing out one ball, set up 2 goals and then just say ‘go for it’. This does not work at all. We have found three simple rules which always help: The first rule is about emotional topics. How do you deal with them? How do I solve them? How do you solve them at home? Talking, of course. How do you solve them at work? Are you sure? You would be the first ones to do so. Let me give you an example. I did a presentation at one of our clients. And I tend to be very black-and-white. I am dyslexic myself and when I went on the stage, I said that most people who join the company turn into IT-dyslexic as soon as they enter the office, even though they manage at home. There were about 1000 people in attendance, and I told them that many people turn into IT-dyslexics. And right after my presentation ended, I got one, two, three emails and when I landed back in Hamburg, I got an email like this from the woman who organizes all their training and used to work with dyslexics earlier in her career and that what I said was really problematic and caused very negative thoughts in some, immediately I was sorry because that was not my intent. It was 5 am on a friday, I just got into a taxi and was on my way to help my wife with the children, when I got this email. What now? The more emotional the topic what now? Write her? It was friday evening, so she wouldn’t be back in the office until monday. The rule is, the more emotional the topic, the more synchronous the communication. I started to write her and then said to myself I am an idiot, turned on the lights in the taxi and got out the best camera there is, which is the one you are carrying right now. The current smartphone cameras are excellent and started to record my apology. I told her that I was really sorry, I really enjoyed the presentation and it was never my intention to hurt anyone. She wrote back immediately that this was the best apology she has ever seen and if she could send it to others. I told her that was my reason for recording the apology. This is what I mean with the more emotional the topic the more synchronous the communication. We tend to forget about that and put someone in CC so he knows where I stand. Getting rid of the ego is a huge problem, especially with digital tools. Just imagine a discussion in a public thread, someone comments, on and on and your boss immediately shuts down the whole thing. That’s the problem. Second, freedom without limiting the freedom of thers. Another hypothetical example, it’s friday evening, I want to edit a presentation and need access to some data from Dirk. So I can finish on Monday. Dirk is on vacation and is not available because his phone is turned off and I can’t get at the data. Then the discussion starts that I should have prepared earlier etc. We have the rule that you can do anything as long as you don’t limit the freedom of others. The mistake that happend was that the set of data was not shared with anyone. Our rule is that no documents are saved on the desktop, we do everything in the cloud, no exceptions. Because we use a cloud which conforms with every data protection standard, is secure, there is no reason to save anything locally. If I lose my notebook or it gets stolen, then I would have a huge problem with locally stored files. The same for if my company gets hacked. In this case it would have been my colleague who’s responsibilty it would have been to have the data availabel for everyone. We have the same rules for attendance. Everyone always equates new work and digital with home office but that doesn’t work every time. There are days where I need someone physically present. And when someone tells me that he has two days of home office per week in his contract and doesn’t want to come in, even though I have told him that I need him, he limits my freedom. And this rule is independent of hierarchy. Everyone is allowed to ask for someone to be present if they need it. I can then tell people that they limited my freedom because they didn’t let me work how I wanted to. One of our core rules and it works very well when everything is shared and I just have to look for it. Third rule: Always on is an important topic. People have the feeling that they need to be available 24/7 and get notifications everywhere. And it’s becoming a massive problem. There is the legend of the red telephone between Moscow and the White House. Of course it’s a legend, they actually use Twitter instead. The idea of it was that the POTUS could call the Kremlin and tell them that the US didn’t launch any missiles, it could have been the Chinese. The idea was to have a channel for emergencies. And that’s what our third rule is about: What is an emergency? We tend to view too many things as emergencies because we are stressed. But what is an actual emergency and how do I communicate that? We had a huge problem with this because of WhatsApp, LinkedIn, Xing, people tell me they can’t reach me and use more than one exclamation mark. Emails written with capslock on a pandemonium of communication tools. And we said enough is enough. Or rule is that when someone calls me twice in a row, this happened yesterday, I had my kids and we were at the playground, I usually don’t pick up the phone when I’m with my kids, my phone is also in my pocket so I don’t even see anything. I sometimes check if someone called me twice and when I checked, I saw that someone called me twice, so I put my children on the swing and started calling and it was an actual emergency. But this only happens once every 6 months or so. twice a year maybe. And if it’s an actual emergency, that’s ok. This rule is valid for all employees. So far we’ve had no misuse from employees, only from clients and partners sometimes, but then we explain the rule politely and that’s that. And then I can put my phone away and we start to notice that it’s our inability to put it away that’s stressing us. Before we start the discussion, a quick sentence about new work: People always ask me what new work is. Isn’t it just table football, fresh fruit and stuff like that. New Work is an attitude, nothing else. To use the current technological possibilites to turn work into something that gives us strength because it takes up such a large amount of space in our lives. Why shouldn’t we turn work into something that we really like and that doesn’t break us. That’s what new work is about. The only things needed are some basic principles, one of them is the distinction between knowing and learning, a knowing or a learning stance. One sentence from Microsoft’s cloud boss, who told is in our podcast that at Microsoft they try to transform from a knowing into a learning company. At first I just nodded until I realized what he meant. Who has children? You? Children learn by connecting neurons. Neurons are like two train stations which are not connected to each other. And as children grow older and learn to walk, the neurons start to connect to each other. As adults, when we get input about new connections we tend so say, even if it’s a great idea, that we already have a connection that works. That has worked yesterday and will probably work tomorrow. But that’s a huge problem. A learning attitude is the opposite of this mentality. And that’s why it is such a big challenge to really become a learning company. Putting the ego on the backseat instead of always knowing everything already. If you know, then why don’t you apply your knowledge? Don’t sit around and tell everyone you know everything. A well-known example which effected me as well was Nokia’s CEO in 2007 who said That’s attitude. 1200 days later Nokia was sold but that’s another story. If don’t manage to change my own attitude – and this counts for the management as well- I cannot expect others to change. I can’t tell everyone to change but I don’t have to. Everyone has to do adapt but my things will stay the same. A good example are the special rules for iPhones for certain employees. ‘We can’t use the cloud because of data security concerns.’ And I usually notice that the iPhones of the board members have cloud sync enabled. Just the regular apple cloud-sync. Where do they think their data is being stored? ‘In the Apple cloud’ They tell me. Oh right? it’s called iCloud and is not actually hosted by Apple themselves. Never has. it was first hosted by Microsoft, then by Google for several years and now it’s hosted by Amazon. This means you have used every big cloud provider. Congratulations. So much for an emotional discussion about data security. If I don’t change, I can’t expect others to change too. A positive example for this kind of attitude is Jeff Bezos in 1999. In 1999 Bezos as founder of Amazon was sued by several big corporations, by Barnes & Noble, Walmart etc. In an interview he was asked if he was afraid. Justen listen to the interview. So, just saying that it’s a fact that tomorrow everything could be different. A fact. The difference is simple: If you are afraid, your work suffers. If you are afraid, you can’t innovate. If you are afraid, you can’t negotiate well. Because you are always on the defensive. Without admitting that you too can be afraid because you are human too, you won’t bet at eye level with others We were all children once, everyone has been afraid once, everyone has their own way of dealing with fear. But that’s the common element between all members of a team. And for a CEO to say that he can lose it all, that’s not a fear, that’s a fact, makes a world of difference. So what can I do to put this all into practice tomorrow? Even though it’s difficult and there are time constraints? I have an idea for you. Everyone has a smartphone. Just think about if you would be able to, just as a small challenge, to go one week where you only use your phone to work. ‘Why should I do that, that makes no sense at all, I need a big screen etc.’ Yes. 99% of your customers use their smartphone to consume and order things. It’s sad but true. But you do as well. That means that the phone is our most important device. What can you learn? How do I see my customers? How does it feel? Are our tools even smartphone-ready? And by the way I have an actual job to do which is not just writing emails. I have to lead, not just create Powerpoints. Of course there specialized tasks which can only be done in Excel or things like video editing, But if I am unable to do the majority of my tasks on a smartphone in the year 2019, something is very wrong. That’s a good starting point. This would be my challenge for you. And I want to end my talk with a feeling. About why new work won’t go away but is actually something that deeply concerns us as human beings. The possibilities we have are huge and independent of our chosen career path. No matter where you work or what job you have, you can change your life. We personally visit each guest in our podcast and at the start of 2019, we visited a guest in Ann Arbor, Michigan. A 4-stop flight from Hamburg which sucks when the TSA is on strike and you carry filming equipment with you. It wasn’t a comfortable flight. We could only bring carry-on luggage. And we interviewed someone who invented the term New Work 40 years ago. His name is Frithjoff Bergmann, he was in the hospital when we visited him, so we asked him to postpone but he really wanted to record the episode. Frithjoff had to lie down from time to time, it was a 3-hours episode. During the breaks I was worried whether he will wake up again. Fortunately he did. Still, it was a moving talk in which I learned many things. I will show you the movie which hopefully conveys my emotions, then we’ll do the q&a session.

AI Future: Economics, Employment, Ethics with Michael Chui McKinsey Global Institute (CXOTalk #268)


AI is everywhere. There is a lot of hype around AI, but what’s
the impact of artificial intelligence, machine learning, autonomous technologies on the economy,
on jobs, on organizations? These are key questions and, today, on Episode
#268 of CxOTalk, we have truly one of the world leaders, one of the world’s leading
researchers who is here to talk with us about these topics. I’m Michael Krigsman. I’m an industry analyst and the host of CxOTalk. I want to say a quick thank you to Livestream
for providing our video streaming infrastructure. Livestream has been supporting us since the
beginning, and those guys are great. If you go to Livestream.com/CxOTalk, they
will even give you a discount on their plan, so thank you to Livestream. Without further ado, I want to introduce Michael
Chui, who is one of the leaders of McKinsey Global Institute, which is the research arm
of McKinsey. Michael, I don’t know if that’s a correct
or an incorrect introduction to McKinsey Global Institute, but welcome back to CxOTalk. Thank you, Michael. Thanks for having me on, and that was a perfect
description of MGI. Tell us about MGI, McKinsey Global Institute. What does it do, and what kind of research
are you engaged in? Well, as your watchers know, McKinsey & Company
is a global management consulting firm. The McKinsey Global Institute is part of McKinsey. It’s an investment by our group of global
partners around the world to do research, quite frankly, on topics that matter. We’ve been around for over 25 years as part
of McKinsey [and], for most of that time, have done work on productivity, country competitiveness,
labor markets, [and] capital markets. For the past few years, we’ve added another
research leg, which is around the impact of long-term technology trends. We’ve looked at data and analytics. We’ve looked at open data. We’ve looked at Internet of Things. Increasingly, now we’re looking at artificial
intelligence, robotics, and automation technologies and their potential impact on business, society,
and jobs and employment more generally. When you focus on artificial intelligence,
robotics, these kinds of technologies, do you have a particular perspective or a lens
through which you look at these topics? We have multiple lenses. First, we understand we need to understand
the technology itself, and so it’s really interesting. I mean the term “artificial intelligence”
is not new. It was coined almost, I think, over a half
a century ago, so it’s been around for a while, and so understanding the underlying the technology. Then, really, it’s not just the technology
that we’re interested in. We want to know what this means for business,
what this means for jobs, what this means for employment, what this means for economies,
and so we really try to take that lens on it. What’s the impact of those technologies that
underpin some of these trends? It’s the business impact of these technologies. Now, is there a common definition that you
use? Just as a baseline, maybe you can help define
this for us. Defining artificial intelligence, you could
go for hours debating it. Roughly speaking, we would describe it as
using machines to do cognitive work, to do the work that comes about primarily because
of our brains. But, as it turns out, even from my graduate
research studies, we know that not all of our intelligence is just trapped in our brains. It’s also part of our bodies, et cetera. And so, we understand that, in many cases,
artificial intelligence itself might enter the physical world and be things like robotics
and autonomous vehicles, et cetera. But, it roughly has to do with intelligence
and then the machines that instantiate it. I don’t want to spend too much time on the
definitions. However, when you talk about machines doing
cognitive work, you’re sort of leaving wide open a big question that I just have to ask
you to elaborate on. What’s the question that we’re leaving wide
open? What does that actually mean to do–
Yeah. –cognitive, because machines are not thinking,
right? They’re going through many, many patterns–pattern,
pattern, pattern, pattern–and matching. It’s not really thinking, but yet we use that
term “cognitive.” I think it’s completely fair. Like I said, we can continue; we could talk
for hours and hours about whether or not this is that or that is this. Roughly speaking, if you think just in economic
terms, and you think about the work that we all do, there’s work that we think of as involving
intelligence. Now, there are all kinds of different types
of intelligence, too. In some cases, we think about logical problem-solving. As you said, pattern matching, recognizing
patterns, but also developing new patterns. As we think about what it takes to be an effective
worker in a lot of places, whether you’re a salesperson, whether you’re a customer support
representative, whether you’re a manager or an executive, part of that is understanding
human emotion as well; being able to process that and then respond appropriately. We all think that those are aspects of intelligence
in addition to the ability to potentially pick up something, which has irregular shapes,
irregular objects, and then maybe add a certain amount of squishiness. You don’t think about that as being something
that you use your brain to do, but what we found is, in robotics, those are some of the
hardest things to do, and so that often gets incorporated into this definition of artificial
intelligence. Some people separate out the physical from
the pure cognitive; but, in many cases, those things can’t be separated. Finally, on this definitional point, is there
a meaningful impact in the fact that you define AI in this particular way? How does that address, shape, inform, or circumscribe
your research? Yeah, well, we take a pretty broad definition
of what we mean by AI. Quite frankly, sometimes we use other words
such as automation to capture the fact that some of these things don’t seem to involve
a lot of what you would call a higher level of intelligence. I think, as we think about it, the sharp cuts
between whether it’s AI or not are less important than what the impact might be. If you don’t mind, I think there are a bunch
of other words. People talk about cognitive computing, which
is perhaps just another brand name for AI. There are some additional distinctions, so
particularly recently. When I started in AI, a lot of the AI that
was developed was purely algorithmic in a certain sense, being able to program an if/then
type, and large amounts of if/then type statements. Machine learning is quite occurrent now in
that roughly the difference being between traditional computing and machine learning
is now you’re training a system rather than programming it. The important thing is, what are the training
sets? What are the ways in which you maybe reward
or punish is another way to think about machine learning? Then deep learning, particularly, is another
where a lot of the recent advances have been. To a certain extent, that’s oftentimes synonymous. It is really a subset. Deep learning and machine learning are subsets
of the overall artificial intelligence. That’s where a lot of, as I said, the recent
revolutionary or at least striking developments have been and where a lot of energy is going
into on the technical side. Of course, understanding the technology is
kind of a basis or a foundation, but your focus is on the business implications of this,
looking at industries and looking at companies. Can you share with us some of the broad, high-level
conclusions of what your research has uncovered? Yeah, well, a few things. One is, our research is ongoing. This is a topic I don’t think that we’ll publish
one report and we’ll be done. Just to preface, we can keep diving into different
details. First of all, as we started to try to understand
what the overall potential for these technologies might be that we roughly call artificial intelligence,
they are huge. They affect potentially every sector, potentially
every function. One reason for that is a lot of the potential
applications of AI really are extensions of the work that people had already started in
data and analytics. And so, we’ve been looking at nearly 500 different
use cases of artificial intelligence across every sector, across every function. Sometimes what we say is, these traditional
analytic methods, whether it’s regression or what have you, gets you this much impact. But, when you could add the multidimensionality
of additional data or these additional deep learning techniques, you could increase, for
instance, forecast accuracy or increased OEE or decreased waste, a number of these things,
which these use cases allow us to do. You could think of AI as just being another
turbocharged tool for your analytical toolkit. I think that’s one broad finding, which is
that there is almost no part of the business that this couldn’t affect. Another piece, though, is we’ve been surveying
thousands of different executives in companies all around the world. My colleagues who serve clients on these topics
also have very direct contact with people who are thinking about or are using AI. One of the things that we know now, as we
sit in December 2017, as we’re talking, is that it’s very early. While there’s this huge potential for improving
economics, both in the top line and bottom line, that a very small percentage of companies
have actually either deployed AI at scale or within core business processes. Now, that’s changing every day as more and
more companies develop this capability, learn more about the technology, and then also be
able to embed it within the processes of an organization, which in some cases is the hardest
thing to do. As we sit now, we’re just very early on this
learning curve. It’s a steep learning curve, but we’re early. And so, I think those are two things, which
a little bit intention, so much potential, but we’re early. I want to remind everybody that we’re speaking
with Michael Chui, who is one of the leaders of McKinsey Global Institute. Right now there is a tweet chat going on on
Twitter using the hashtag #CxOTalk. You can ask Michael questions. Please share your comments and your thoughts. Michael, we’re at this phase where it’s clear
that there’s all of this potential across many, many different, almost every sector
of industry, as you described. Yet, very few companies have deployed artificial
intelligence technologies at scale. That means that at this stage there is also
a large understanding gap and execution gap. And so, how do organizations fill those gaps? What steps do they need to take? Well, I think, in terms of steps that need
to be taken, it’s not the first time when we’ve seen a new family of technologies enter
the scene, which has great potential and where it’s fairly early. If you think back to cloud, if you think back
to mobile, these are technologies which are transformative but take time to actually embed
into a business. First of all, as we were talking about, you
need to have an understanding of the technology itself. You need to raise the waterline. That can often start with the technologists. We’ve said this so many times when we’ve talked
about any technology. It’s not just the technologists who have to
understand something about it because you really do need business leaders writ large
to start to understand what’s possible. If you don’t understand the art of the possible,
you’re not going to be able to identify and prioritize opportunities. I think that understanding the technology
is number one. Secondly, again, because we’re at this early
stage where the potential is increasingly being recognized, we’re starting to see more
and more vendors show up at our doors carrying AI solutions in their bag. That’s great. I think that’s part of taking those meetings
as part of that education. But, I think often a failing would be to be
captured; to find something so exciting that you just want to go ahead and do it. I think making sure that, again, not that
you may need to take years to do this, but very quickly understand the portfolio of possibilities
so that you’re actually spending your time on the types of solutions which will drive
the needle for your business. For instance, I talked about the 500 or so
use cases that we looked at. Just two broad categories where we’ve seen
huge amounts of potential: one is basically on the customer-facing, sales, marketing,
[and] customer experience side. This is everything from improving your next
product to buy recommendation to being able to segment a customer who comes to you so
that you provide them with much more personalized and customized interactions. Then another broad category, which let’s just
describe it as operations improvement, and so whether or not it’s identifying waste,
reducing inventory costs, managing your energy costs, logistics, supply chain, et cetera. It’s another broad, broad category. Again, if you understand what type of business
you’re in, you’ll understand which of these needles, if you tuned it up by 10%, 15%, 50%,
which one will actually drive the most value for you. I think understanding that and then, of course,
the execution against it is so, so important because, again, that last mile, right? We see this pilotization, you know, pilotize-itis,
maybe, right? It’s great to run a pilot. It seems to be successful, but the real hard
work then is how do you, day-to-day, change that process which is really going to drive
benefit at scale? That’s the hard work we do on change management
every day, but this is a different set of underlying technologies. We’ll need to learn how to do that in every
business. What you say is so packed. There are about 12 different things I’d like
to ask you simultaneously, and I wish we had about 3 hours. We have to focus because we have so limited
time. We have half an hour left, and the time is
just flying by. What are the common threads? As you look at industries, what are the common
threads? At the same time, we have a question from
Twitter, and maybe you can weave this in. Scott Weitzman from IPsoft is asking, “How
does the company understand technologies from a purchasing perspective?” In other words, okay, how do companies think
about buying this? The industries and absorption are the topics
here I would ask you to elaborate on a bit. Well, let’s start with industries, as you
said. Again, if you take these two broad categories
of value potential, there are a lot of industries which much of their value gets driven from
their customer interactions. If you’re a retail company, if you’re a consumer
package company, et cetera, it might make more sense to look at the value of AI and
those types of functions. On the other hand, if you’re driven by your
operational effectiveness, if you’re in the business of manufacturing, delivering and
shipping products, for instance, if you’re in logistics, then perhaps those operational
needs. Again, I think those are, at least at the
top level, one way to think about it. I think another common thread that we have
found is the following, which is, I think oftentimes you discover a technology which
has a potentially transformative impact. You say, “Gosh, isn’t there a shortcut? Can’t I just jump and use that to compete?” As it turns out, what we’ve discovered with
AI, particularly because of the need for large training sets of data that, in fact, we’ve
discovered a high correlation between both sectors as well as individual companies, which
are further along on their digitization journey, so the ability to use digital within their
core processes to improve process effectiveness. There’s a high correlation between that and
your readiness for AI, and so I think one of the other common threads we’ve discovered
is it’s actually quite difficult to accelerate past your digitization journey. You need to be on the digital journey in order
to enable yourself to be ready for AI. I think that’s another finding. If you want to accelerate your potential impact
with AI, you need to accelerate your move along the digital journey. To the questioner’s question in terms of how
do you think or how are customers thinking about purchasing, I think a couple of things. One is, because it’s early, developing and
understanding from the customer perspective is more important than ever. Again, I’m assuming the question is coming
from a place of, as a technology vendor, how do you sell more effectively? The first thing is sometimes what you need
to do is to educate the customer so, in fact, they can be a good customer [and] understand
the value that you’re potentially providing. The other piece of it is, as we think about
the impact of AI, certainly, there are impacts of AI which are improving the IT function
itself, so whether or not it’s using AI to improve cybersecurity, using AI to improve
customer support for IT. Look; the vast majority of the value of AI
is coming from improving business metrics. Then what I’d say is then it’s going to be
a simultaneous sale. From a procurement standpoint, you need to
make that case to the business. You also need to make that case to the technology
function as well, simultaneously. I think that’s something else that we’ll see
more and more of, which is that the business will need to understand this in order to buy
AI. When you say that the vast majority of the
business benefit of AI comes from metrics, I’m assuming that what you mean is businesses
need to see the practical results or are you getting at something else? Yeah, I think business needs to see the practical
result. When I mean practical result, we’re talking
about things like increased conversion. We’re talking about things like decreased
maintenance costs, increased uptime, higher priority prospects or higher potential prospects
being identified. Literally, the things that drive the business,
the metrics that drive the business are the ones that people are going to be looking toward
AI solutions providing. We have a question from Twitter from Mitch
Lieberman about a topic that I know is very important to you, and that is the issue of
AI and the economic impact and the impact on jobs and the workforce. This is a topic that we recently published. Actually, we published two reports. We published one in January, and we just published
one at the end of last month, our last one entitled Jobs Lost, Jobs Gained. A couple of things: one is AI and these automation
technologies more broadly. Again, some of the potential impact is for
these technologies to automate activities, which we currently pay people to do in the
economy. Again, we looked at things at the level of
individual activities, not just occupation, so 2,000 different activities we pay people
to do in the global economy. Roughly half of the time that people spend
being paid at work is on activities which theoretically could be automated by adapting
technologies, which exist today. That sounds scary, right? That’s a large percentage, but we’re not predicting
50% unemployment tomorrow partly because it takes real time. It takes real time on the technology side
to develop the technology. You actually have to have a positive business
case, typically, when technologies are first developed, whether it’s a self-driving car
or an artificial intelligence algorithm. It tends to be relatively expensive. That cost declines thanks to Moore’s law. You need to net that out against the cost
of human labor, and that’s different around the world. In any case, 50% of the world’s activities
potentially might not be automated for another 40 years, so 2055. Although, we have a scenario which is 20 years
earlier and a scenario that’s 20 years later. We do know that increasingly activities, which
we pay people to do, will be automated. The question then is, will there be enough
demand for human labor, even net of the things that might be automated? Our report from last month suggests yes. If you look at a number of different potential
catalysts, whether it’s increasing prosperity around the world, another billion people entering
the consuming class in the next couple of decades, whether you’re talking about aging,
which is a troubling thing because we have [fewer] workers, but on the other hand it
drives the need for healthcare. We have roles for people to develop and deploy
the technologies themselves. We’re going to see increasing, hopefully,
investment in infrastructure to help the consuming class, but also fix and improve the infrastructure
we have. We’ll see changes in energy mix and efficiency,
and potentially even a lot of what’s currently unpaid work in the economy that’s many times
done by women at home, whether it’s childcare, cooking and cleaning, increasingly enter the
market. If you look at all of those things together,
and then even you netting against those the activities which AI and robotics might do,
we still see plenty of work for people to do, enough to basically offset the effects
of automation. The broad question, though, is, okay, if you
think mass unemployment isn’t going to be the problem, mass redeployment might actually
be the problem. As much as we want the education system to
get better, it actually works fairly well. What we think is potentially the great grand
challenge for the next couple decades is, how do we retrain millions of workers who
will be displaced by the technology? We need them to keep working to have economic
growth, and yet, at scale, retraining of people past their first two decades of life is something
that I dare say we haven’t completely solved yet. That’s something we really badly need to work
on. Clearly, there is a very broad set of stakeholders
that need to be involved in thinking through these issues. That’s absolutely right. The breadth of this includes everyone from
government and policymakers, business leaders, and then individuals themselves. People have said, “Look. What’s the one thing we need to do?” Given the breadth of this problem, I do think
it’s potentially an all of the above. We need to think about, what are the public
policy levers; what are the business levers? I’m encouraged greatly by a number of business
leaders. You think about these heartless capitalists,
but they understand that Henry Ford thing about, if you don’t pay you’re your workers
enough, they can’t buy your products, right? We do hear about business leaders saying,
“How do we retrain our workforce? In fact, how do we even retrain our workforce
if sometimes their next job won’t be with us, but we know that we need to have a compelling
employee value proposition?” Then a lot of people have said, “How do we
enable workers to take charge of their own careers, take charge of their own training?” Give them the tools and the information they
need so they can retrain because this will affect all of us. It doesn’t just affect a sliver of people
who are low-wage front-line. We find activities even for people with graduate
degrees; 20%, 30% of what they might do might potentially be done by machines, and so they’ll
have to think about what they do differently as well. To what extent do business leaders need to
think about these retraining issues now at this very early stage where they’re just beginning
AI pilots in very narrow processes? I do think that this is something that demands
some immediate attention. Now, it’s not necessarily because things are
going to happen overnight, particularly with regard to AI. But, if we think about automation technologies
more broadly, then, in fact, we are starting to see these things, whether it’s robotic
process automation, whether it’s physical automation from a manufacturing plant, in
logistics, or in a distribution center. These technologies are coming into play today. Again, another point that we sometimes make
is, while we’ve described this as being a multi-decades trend, that this will take time
in macro, it will happen quickly for individuals. It will happen quickly for individual workers. By the way, it takes time also to understand
retraining. We described this as a grand challenge. Usually, grand challenges aren’t solved overnight,
and so I do think business leaders engaging on this question about retraining their workforce
on a continuous basis at scale is something that is a question that ought to be top of
their mind when they’re starting to think about their workforce strategy. What is the difference between retraining
now and retraining following the wave of outsourcing that took place some time ago? Yeah, when we look to history, in some ways
there are encouraging pieces there, whether it’s outsourcing, whether it’s the broad-based
move from agriculture to manufacturing, the increasing move for manufacturing services. In flexible marketplaces we’ve found people
do find new jobs. Now, there is a separate question about whether
or not they’re being paid as much as we would like them to be in order for them to continue
to consume and be part of the economy. Broadly speaking, we’ve been able to do that. Are there differences now? A couple of things: One is the breadth of
potential impact here. Like I said before, this is not just some
assembly line manufacturing worker. This is not just one role or another. In fact, all of us will have this impact our
lives, and so I think being able to do that. The scale, also, particularly, again, past
the first two decades of life, mid-career retraining we’ve found to be a challenge as
we’ve looked at different programs. There are successes out there. But again, we need to build on those successes
to be able to see what we can do at scale. Just the level of investment. I had the privilege of talking with a workforce
development board recently in a large city in the United States. We just sat back and compared the amount of
investment being made in K-12 or K through college, even, and compare that to the level
of investment that we’re making in people who have left formal schooling. Again, it’s a huge, vast difference. Now, that said, this has been a story that’s
continued. Again, when we started this process of moving
from farm to factory in the United States, there was no universal high school. That was a social movement. That was a set of investments that we, as
a society, decided to make. I think our question now, as we think about
artificial intelligence, as we think about the impact that might have on the workforce,
the fact that we’ll need to retrain so many people, what are the analogous, but different
sets of investments that need to be made so that we can take advantage of the benefits
of artificial intelligence, and yet continue to have both dignity, as well as income, that
comes with work? We don’t believe, in fact, if the machines
do all the work and people aren’t working at all, we won’t have enough economic growth
in addition to the other benefits that work gives you. I want to ask you about demographic issues. Before that, we have a comment/question from
Twitter, from John Nosta who has been a guest on this show and is a brilliant thinker about
the future of healthcare and the impact of these technologies. John asks, “What about the potential for a
guaranteed minimum income that changes an entire notion of what is a typical full-time
job?” Yeah. This idea of a universal basic income, guaranteed
minimum income, et cetera, is capturing a lot of currency. I sit in San Francisco here and, as it turns
out, there are a lot of people talking about it there. There are lots of arguments for it. One of those arguments is if we think the
machines are going to take everybody’s job and we’re going to have mass unemployment,
we need to make sure that everybody has enough income so that they, in fact, can feed themselves,
et cetera, and feed their families. I think that justification or that rationale
for universal basic income gives up too early because that assumes mass unemployment. In fact, what we say is we do need mass redeployment,
not mass unemployment, just to make sure that we have enough economic growth going forward. Our point of view is that we’ve looked at
the past 50 years of economic growth. Half of that has come about because of more
people working. Because of aging, we’re going to lose a lot
of that. One way to think about it is we just don’t
have enough workers. We need all the AIs, robots, et cetera working,
plus we need people working to have economic growth. Again, if you think UBI is based on the fact
that we’re going to have mass unemployment, I think you’ve given up already and, in fact,
you need to move. The other thing that I think is also helpful,
again, as we modeled out the potential impact of AI and other technologies, plus these additional
drivers, we might continue to see this increasing income dispersion or income inequality. You might ask, “Look. We just need to make sure that people get
paid enough.” Well, then again, if you want to look at it
from a public policy standpoint, maybe you could target the types of subsidies such as
the Earned Income Tax Credit, which both incent work as well as provide additional income
to people. I think, thinking through all of those possibilities. Now, that said, UBI for a place that’s a developing
country, again, it might put the floor in place that allows people to have a lot more
freedom in terms of what they’re able to do in their job. But, in a developed country, both because
of the expense, as well as the fact that it isn’t targeted towards trying to get people
working, I think it’s challenging for that reason. That said, the overall point, another overall
point that we found from history, which we hope will continue is, while we don’t think
everyone can completely stop working, the working week has declined, on average, by
double-digit percentages over a matter of decades and centuries. Hopefully, we all can actually have more time
for leisure. By the way, leisure actually drives new activities,
new occupations. That’s something else we need to do. We need to continue to generate new activities
and occupations. Hopefully, the workweek will continue to decrease
over time. At least, for the foreseeable future, we don’t
see it going to zero. We have questions backing up on Twitter. Steven Norton from the Wall Street Journal
has a question that I want to get to in a moment. The CxOTalk social media account [laughter]
has a question that I want to get to. What about the issue of demographics? Where does that come into play? Yeah, demographics is a really interesting
and a number of powerful factors. Again, we cover some of this in the report
we published last month. First of all, countries vary greatly in their
demographics. For many countries, they’re aging, and that
basically exacerbates this question; we don’t have enough workers to continue the economic
growth that we’ve enjoyed for so many years. The reason why we have better lives than our
parents and our parents had better lives than our grandparents, et cetera, is because of
this economic growth and half of it coming from more people working. Germany’s workforce is declining. Japan’s workforce is declining. China, with a population of a billion and
a half people, their workforce either is or, depending on who you ask, will shortly begin
declining. Those are countries which simply don’t have
enough workers to underpin economic growth. Again, one of the implications of that is
AI and robotics can actually be some of the workers, can fill in for that gap in terms
of just numbers of people who are available to work. That said, there are other countries like
India, countries on the African continent, et cetera, which are very young, and their
demographic pyramid looks very different. We’re concerned at some point about the fact,
well, gosh, what if automation AI, these technologies, come into play just as they need to create
even more jobs? That’s absolutely true in India, for instance;
another 150 million people needing jobs going forward. Again, we modeled out all of these potential
drivers of additional demand. By the way, we picked seven of them. We know that there are more, so even our modeling
is limited. Particularly in those countries which tend
to be young, those are countries also which tend to have high aspirations for their economic
growth. They start relatively low on the GDP per capita
scale. As a result, that will generate lots of demand
for human labor, as well as robotics and artificial intelligence. Even in those countries, we see the potential
for lots of work as well, work to be done. Again, that comes back to the question of
retraining and education. Can we get people into those jobs? Then, can you actually deploy those technologies
in a way because, as I said before, AI and robotics require an underpinning of moving
on the digital journey? Even those countries, which are developing
and young, will need to move on the digital journey in order for them to take advantage
of these other technologies and improve their productivity while they’re generating new
jobs for people as well. We have several questions from Twitter, and
I’ll ask you to answer these relatively quickly because I’d love to get to as many as we can. Wow, my mind is just being blown by the things
that you’re saying, Michael. [Laughter]
I want to remind everybody; we’re talking with the amazing Michael Chui, who is one
of the leaders of McKinsey Global Institute. His research into AI, the impact of AI on
jobs, the economy, is really pretty extraordinary. We have a question from Steven Norton on Twitter. Steven Norton is a reporter for the Wall Street
Journal. By the way, I want to always encourage reporters
to ask questions. We have such amazing guests on CxOTalk. There are a lot of stories here to write. Steven Norton asks, “What role does user experience
play in [the] adoption of AI in the enterprise? Is user experience today sophisticated enough
to be useful to help employees outside the data science and IT departments?” Hey, Steven. Thanks for the question. I love your stuff, by the way. A couple of things: One is, I think we are
starting to see really interesting things in AI, particularly in voice, et cetera, where
it’s a lot better than it used to be. At the same time, is it perfect? Not even close. There’s that very visible frontline use of
AI for user experience. There’s also the effective use of AI and these
technologies a bit in the background, so making sure that, in fact, you’re getting a personalized
type of response. I think, in some cases, that’s getting a lot
better. In fact, you can’t even see that it’s working. I think there’s a little bit of a distinction
there, but in both cases, I think AI continues to improve the potential of improving customer
experience. Some of it is sometimes laughable, but we
do see grading improvements in that over time. Another question from Twitter. This has become, like, 20 questions here. Mitch Lieberman asks, “You’ve mentioned hundreds
of use cases. Where does medical fit in? And, in general, which use cases have the
greatest impact?” Yeah. The healthcare use cases are extremely powerful. Lots of value potential there. In fact, I’m sure the questioner has seen
lots of interesting academic results being published day-by-day. We see a recent result out of Stanford where
the ability for a deep learning system that was trained on radiology scans to be able
to diagnose pneumonia better than trained radiologists, for instance. Lots of interesting work going on in dermatology. Primarily, these are places where deep learning’s
effectiveness and image processing allows it. That’s a natural place to effectively go,
but we are seeing applications across the healthcare space, whether it’s in claims and
provider, as well as looking at population health. Number one, healthcare is a huge part of the
economy, particularly in the United States. There are lots of potential for improvement. Over time, hopefully, there’ll be more and
more data that can be used for training. I think the potential there is just absolutely
tremendous. Sorry, Michael. I’ve forgotten the second part of the question. The second part of the question is the ability
of user interfaces, user experience to enable non-specialists in the enterprise to make
use of the data and these AI technologies. Yeah, I think this is one of those things
where, just like many other technologies, oftentimes the benefits to the end user are
embedded in the system, but you don’t have to understand a convolutional neural network
in order to be able to speak to a voice interface. I think, over time, what we’re going to find
is a little bit of the AI inside. We see a lot of the technology CEOs saying,
“We’re going to be an AI company.” That doesn’t necessarily mean that someone
is going to have to be on the command line and set up the system themselves. Rather, that it’ll be embedded in the systems
that operate, and we’ll just benefit from better systems. Okay. In the spirit of plowing forward fast, the
@CxOTalk Twitter account asks an interesting question. She asks the question, “What differences have
you seen since you published your report at the end of 2016 and early 2017?” What’s happened this year, and where is it
going? Where do you see it going, the changes and
the rate of change as well? In some ways, what’s happening is predictable
because we’ve seen these technologies, whether it was from data and analytics, whether it’s
Internet of Things, [or] cloud. We’ve talked about mobile before as well. We’re starting to see it permeate in terms
of awareness, particularly amongst business leaders, at least people asking, “What’s AI?” Then there are all kinds of funny, naïve
things as well, right? I joked at another conference. There was a time in the data and analytics
journey where you’d hear a business leader ask their IT person, “Please buy me a Hadoop,”
and now, “Please buy me a neural network, and how much does it cost?” Right? We’re starting to see that. That’s part of being along the hype cycle,
being part of a journey. I think we have good or increasing awareness
now. But now, I think, understanding the technology,
being able to actually deploy it in business, we’re on the cusp of doing more and more of
that. Clearly, the born digital companies, online
companies, et cetera, have embedded these types of technologies deep within many of
their processes. We’re starting to see incumbent. Let’s describe them as incumbent sectors because
we have startups in every sector. But, incumbent sectors are starting to think
about, how can I use these technologies to improve my performance to compete better? That’s really starting to happen. It really is a process of understanding, but
then practice, right? This isn’t something you just read about on
the Web. It’s something you actually have to do because,
at the end of the day, that last mile challenge, “How do I embed that at scale within the process
of an organization?” that’s the hard stuff. Finally, we have about three or four minutes
left. Picking up on what you were just describing
as incumbents starting to pick these things up, what advice do you have for incumbents
who are looking at this and they say, “Hey, we need to do something.” What’s your advice to these folks? Yeah, number one is, dedicate some time and
resources to understanding the technology and its potential. I mean I should have said they should read
our report, but [laughter] but I’m not going to do the commercial. I think it really is starting to understand
what that potential is. Then I think the same sort of test and learn
philosophy, which was effective in data and analytics broadly, I think that’s something
which is true here, too. Another thing I think, which is also true,
is particularly for the technologies which are working well today around machine learning
and deep learning. They’re based on having training sets, so
data. Again, I think being sophisticated about having
a data strategy is really important. I had the opportunity to speak with Andrew
Ng, for instance, who is one of the pioneers in deep learning and machine learning, overall. He talks about some of the leading companies
in the deployment of AI, really spending time on these multiyear views of what data is important
to be collected or have access to so they’ll be able to compete going forward, and they’re
playing these multiyear. He describes them as multidimensional chess
games to have access to the data which matters. What are the largest challenges that you see
these businesses are facing right now? Well, one of the largest challenges now is
particularly on the human talent side. We saw this with data scientists previously. Again, to a certain extent, we talked about
many of the AI use cases being extensions of the analytics use cases. The analytics challenges with regard to talent
now are extended to the challenges around AI as well, and so huge amounts of war for
talent in terms of people who understand these technologies deeply. Of course, that’s changing, too, as more and
more people take advantage of online resources, enroll in classes, et cetera. Again, supply and demand are constantly evolving. Right now, demand is so high, and supply is
relatively limited. One of the biggest challenges is just having
people onboard who can do it. Then another challenge is around data because,
again, many times you need these large training sets. In many cases, labeled training sets, and
that’s a really interesting job effect too. It’s been covered a lot, but take for example
self-driving cars. They have these cameras in them, and they
do a lot of their sensors through cameras. There’s a growing number of people whose job
it is to annotate video feeds from self-driving car pilots to help train these cars themselves. Again, there’s a real challenge around data,
and that’s something else that companies, which are on the forefront, are really spending
some time and energy addressing. Mitch Lieberman says that he’s doing the commercial
for you or for Michael Chui and McKinsey saying, “Go read the report because it’s really great.” For sure, I will send that. Finally, in the last one minute, changing
gears entirely, what do you think about Bitcoin? [Laughter]
[Laughter] Bitcoin is fun to watch. I have an app that shows me the Bitcoin’s
dollar conversion every day. Let me leave this with people just for fun,
for those who remember their computing history. We talk about Bitcoin as an application of
blockchain. I wonder if blockchain is a little bit like
risk computing. Ah-ha. In what respect? Yeah. It seems to have transformative impact in
terms of its potential performance, but perhaps the legacy systems, either technical or business,
could incorporate them, and so it doesn’t have as much [of a] disruptive impact at the
business level so much as incremental. Well, that’s very interesting. I wonder how the blockchain folks would think
about that. That’s a whole other discussion. Blockchain folks, what do you think about
that? We are out of time. Wow! Michael Chui from McKinsey Global Institute,
thank you so much. This has been a super, super speedy fast 45
minutes. Thank you so much, again, for taking time
in coming here and sharing your experience and research with us. Thank you, Michael. I have enjoyed being with you again. I hope you come back. I’d be delighted. Everybody, you have been watching Episode
#268 of CxOTalk. Our guest has been Michael Chui, who is one
of the leaders of McKinsey Global Institute. Truly, their research is extraordinary, and
so I urge you to check it out. Next week, we have a show on Wednesday, Episode
269 with two interesting folks: Minette Norman, who runs Engineering Services for Autodesk,
she’s responsible for 3,500 engineers; being joined by Tamara McCleary, who is one of the
most well-known digital transformation experts. Join us on Wednesday. Next Friday, there’s no show because of the
Christmas holiday. Thanks, everybody. Thanks, everybody, for joining us, and we
will see you again next time. Bye-bye.

Make a claim to an employment tribunal on GOV.UK


The digital service improves upon the non-digital service by essentially making it quicker to apply to an employment tribunal. People should use this service if they have a grievance with their employer or potential employer. The thing that has been really positive is
the primary feature that we have implemented around saving and returning to the form; that’s
getting fantastic feedback. Throughout testing, we were finding that users,
when they were filling out the form, were getting confused at certain points, and they
were unable to continue filling out the form. So we went away and we worked on making the
language a lot clearer, and then retesting it to make sure that they were able, then,
to get through those points. We also received a lot of feedback that 29
pages is a lot to actually understand. Our form is now 12 pages long. For people who have experienced a problem
at work, going to the employment tribunal is the last recourse for them to get justice
for the injustice they feel they’ve experienced.

Business Application Platform: PowerApps | Business Applications Spring 2018 Release


>>Thank you for
joining us today. We’re going to be talking about the new PowerApps capabilities available in the April release. Before we get into
those details, we want to talk about
the framing that we use to think about PowerApps. We use a digital feedback loop which is something
that you’ve heard about consistently throughout
the other streaming videos in the digital event which talks about how we go connect
together customers, products and people to actually enable
digital transformation. And we do that through the six main offerings
of marketing, sales, services, operations,
financials and talent, which together create
a great deal of data which can go feed back and forth
between these applications, to go transform how you
engage with those customers, your products as well
as your employees. A key underpinning of this digital feedback loop
is the platform elements. That’s PowerApps,
Microsoft Flow, PowerBI, Azure and the
Artificial Intelligence capabilities for Microsoft. And these platform capabilities are an essential ingredient to the digital feedback loop
for a few basic reasons. The first is that when you ever want to go
do digital transformation, the easiest way is to go buy an application
off the shelf. And with Dynamic 365 we have a plethora of
options available to you which all make it
very easy to just take something and quickly change how you actually run your business. The next bit, and this is
where the platform becomes very important is that none of those applications are
perfect right off the shelf. You have to go customize them and tweak them to
match what you need to actually make
your business processes run as you need
for your industry. And the platform is how
you go about changing things like the sales and service offerings
from Microsoft? And the third bit is
equally important. The reality is there isn’t
always an app for that. Sometimes you can’t just go
buy something off the shelf. Instead, you have to go
build it and to build it we have a great platform here at Microsoft to
go make that real. And a good visual to think
about that, is this one. If you imagine digital feedback
loop has the big elements that are available through
the SaaS applications from Dynamics 365, there’s all kinds
of small pebbles in between those that
are key to actually doing the digital
transformation making digital feedback loop
real for your business. And this last mile is
enabled by the platform. The platform makes
it incredibly easy to quickly build applications that integrate tightly
with your data and your existing business processes that you use within
your organization. And this is really
that last mile, that last element of
what it takes to truly transform how you engage
with your customers, your products and
your employees or your people. And if we go and
think about what does that platform really mean? The Business
Application Platform? If you drill into
it you can see that there’s PowerApps and PowerBIs, the two big elements of it. PowerApps is all about
rapid application development, quickly creating
experiences embedded in all your other
business processes and applications tailored to what your business needs and PowerBI which is
all about creating insights and
intelligence on top of the data as part
of your business. And these elements
integrate with a few other core products
or core capabilities. The most important of which
is the Common Data Service. Where the Common
Data Service for applications which is
what underpins PowerApps. It’s where all your system
of record data is stored as well as
Microsoft Flow which makes it incredibly easy to do
business process automation and workflows on top of that data and on top
of your applications. For PowerBI, it also has a Common Data Service for intelligence which
is what actually enables you to
quickly build insights and optics into the data that you’ve accumulated
from your applications. Together these two
elements create the business application
platform, PowerApps and PowerBI. And what’s great about
them is they also share the Common Data Model. The Common Data Model is
a really important detail for what the Business
Application platform enables because it’s a well-defined consistent schema to describe your business data
and your business objects. In addition to
the Common Data Model, there’s connectors and
data integration capabilities so you can very easily
reach data that may not be in the Common Data
Service whether it may be inside of SAP,
workday or salesforce. Over 200 different services have completely native
integration with PowerApps and PowerBI out of the box if that’s where
your data is today. And, what’s so unique
about PowerApps and PowerBI from Microsoft is the tight integration we
enable our Dynamics 365, Office 365 as well as your standalone business
applications that you create. If you go inside of
SharePoint lists, the way that you actually
change the experience for your end users
is with PowerApps. There’s way you go
create workflow and automation is through
Microsoft Flow. Same thing applies if
you’re on Microsoft teams or a bunch of other
Office 365 offerings. If you go to Dynamics 365, it’s completely natively built on top of the
PowerApps platform. That means you can go customize all your dynamics applications using the same knowledge
and tools and capabilities that you
see in PowerApps which enables our customers
to that earlier point to go tailor
our SaaS applications to exactly what they need
to go change their business. And of course for that last mile that we
were talking about, you can go build
your standalone applications and your standalone experiences on top of PowerApps and PowerBI. And when that may not be enough, when maybe you have
to go an extra mile, you can go drop into Azure. And Microsoft has
incredibly tight integration between PowerApps and
PowerBI and Azure to make it very easy to go bring in developer code through
APIs connectivity or just logic that may be beyond what you
want to go do in a high productivity application
platform like PowerApps. And to show these
things in action, we’re going to talk about
three real customer examples that are out in the wild today. First, we have Metro Bank. Metro Bank uses Dynamic CRM to actually manage all of its
engagement with its customers. And this is a great
story of how you take Dynamics 365 off the shelf. You can actually
quickly change how you go engage with your customers. But in their case,
there is more to it. They want to go have
an experience where they greet people who
walk into the bank. And to do that they
built the PowerApp. So with Microsoft PowerApps
they were able to go build a tailored experience for their greeters,
an app called m-greet, so that whenever you
walk into the bank they can give you a high touch, highly tailored
experience specific to what it is to be
a Metro Bank customer. And this connectivity between Microsoft and Metro Bank
really transformed and enabled that close
customer engagement which is so important to
Metro Bank as a company. And that’s what the story
really is all about. You can take Dynamics 365
off the shelf, change how you do
business and as needed, you can turn around and
drop into PowerApps to go build experiences as needed, as required and just exactly how you want them to go
engage your customers. Another great example
is G and J Pepsi. Here is a great story of how they change how
they engage with their product as well as how they empower
their employees. If they had a problem as the largest family owned Pepsi Bottler in
the United States, and that they wanted to go audit individual grocery stores
to make sure that the placement of
the Pepsi products is up to their standard and up to the agreements they already reached. To do that, it was
a paper process. People would go out
with clipboards and if they wanted to go order more inventory or
anything like that, they had to go make phone calls
and send text messages. However, with
PowerApps and PowerBI, they were able to transform
what this process looks like. First, they were
able to go build a mobile application
so that people who actually went into
these grocery stores to go do these inspections
and these audits, they could use PowerApps to record and track
every single thing that they noticed and whether
or not they were actually getting the placement that
they expected and wanted. And, to go beyond that, to really change the process and how they actually
managed their products, they were able to go and
add a function to go order more inventory or
request more delivery to that store which is the thing that before couldn’t
really be enabled, certainly not enabled digitally but they could go
transform that because they had PowerApps running
on a mobile app to go be brought into the store and actually help with that process. And as a result of
all the data from PowerApps flowing into the common data
service for applications, all kinds of other great
capabilities lit up. And primarily,
that’d be PowerBIs. It’s very easy to create
PowerBI dashboards on top of the Common Data
Service which allow them to go get insights that
they couldn’t do before. And this again is
a story of how you can go transform the way you
engage with your products. And the third example
is TransAlta. So TransAlta is a very large
company that’s based out of Canada that manages repairs
of electric wind turbines. And to do that, one of
the common problems they had is if a turbine
breaks off hours, how do you determine
whether or not to go inspect and repair it at that moment or to wait until business hours or more
scheduled repairs? And the way it worked before
was either you always send people or you had to
make a judgment call about whether or not
it made economic sense. However, they were
able to go convert this to a digital process, to digitize that decision
making framework to decide whether or not they
wanted to go actually and repair these wind turbines. And this process was a huge success in
terms of actually driving significant
savings and in just a matter of
a month actually pay for the development
of the PowerApps or the PowerApp itself
because they were able to go and prove
that business process of wind turbine repair
by bringing that into a digital framework
and digital system. So that’s what’s so important and so unique
about PowerApps across these three customers is
the real story of how you can transform that last mile
of engaging with your customers or that last mile of how you track your products or again that last mile
in the case of TransAlta of how your employees interact with your products. And this really
tells that story of the complete digital
transformation and digital feedback loop that we
were talking about earlier. What we’re seeing across all these different
customers and across all these different
industries is two basic principles of what application development
is training like. The first is the IT application
development is shifting towards low code,
high productivity environments. And the reason for that
is because it enables incredibly rapid application
development to respond to the changing business needs and regulatory needs of
a modern company. And that is only really
possible with a platform like PowerApps because it makes it so easy to actually
go build an application. The second is those high productivity
application platforms, or be it around
the data that you actually already collect
for your business, your CRM data, your ERP data. And the reason for that is
what we talked about earlier, it’s all about transforming how you engage with
your customers, your products and
your employees, and that data is
naturally stored inside your CRM and
inside your ERP. So you really want to have
that tight connection between your high productivity
application platform and these business applications
like CRM and ERP. And this story and
these two basic trends that we’re noticing in
the industry are what have driven us as Microsoft
to ship these three products, PowerBI, PowerApps
and Microsoft Flow to really deliver on
that promise to our customers. And we have major investments of them in the Spring release of this year to go
make them be even more unique in the marketplace. And what’s super core to each of these application
platform components, is that they’re Cloud-first. That means very easy sign up, very easy setup
and no deployment. You can get going in
just a few minutes. Second is it has, all around is single data store. What that means is we have
the Common Data Service behind PowerApps, behind
Microsoft Flow and enabling intelligence
and PowerBI on top of it and we make that
very easy without having to go do data movement
or data integration. And what’s great about
that as well is that Dynamic 365 natively stores all of its application
data for sales, service and marketing directly in the Common Data Service. And the third bit
is we recognize, all your data may not be
in the Common Data Service, it maybe in other systems. And to make that just as easy, we ship with over 200 connectors to the industry
leading system of records and business
applications to make it so that you can connect to
where your data is today. And that’s an
incredibly key element of the platform is
something we support natively out of the box with no coding and for
no additional cost. Additionally, we support an incredibly rich cross-platform
development framework which makes it easy to
go build applications and workflows and BI that
may run on iOS devices, Android devices, in
the browser or on a Windows PC. All of those are
supported natively out of the box and you
only have to build your applications
and your experiences once in a work across
all those different platforms. Additionally, everything
is essentially manageable. One of the biggest concerns
we have when we talk to customers is that with
this easy to use platform, you’re going to have
an explosion of applications and workflows and BI
inside of your company, but we make it easy as an IT department to
take control to have Data Loss Prevention policies or DLP policies to make sure that data doesn’t leak
out of your organization. There’s also incredibly
powerful reporting and our team support as well, so you can track what people are doing in your organization
and make sure they’re only
behaving according to your policies and
compliance and regulations. And lastly, and something
that is particularly unique for what we have
with our platform is that there are no cliffs. You can start with
something incredibly simple and get more and
more advanced all the way to building an entire end
to end application without having to go abandon this high productivity
application platform. And we do that because
of our Azure integration, our Office integration,
our dynamics integration, each of these three offerings. And to make that story real, let’s look at this diagram
of the ‘no cliffs’. First SharePoint embedded forms. There’s tens of thousands of authors already
building experiences embedded in SharePoint
which are reaching an even larger number of users using the
PowerApps capabilities. Whenever you build the PowerApp, you can bet it right on a SharePoint list to replace
the default form experience. And that means
the same skills you use for your business applications
you can also go put in your productivity
applications. Something unique to
what Microsoft offers. Next, you can go build relatively simple or
straight full line of business applications. And to demonstrate this,
we’ll talk about a real story. Brian Dang is a teacher based out of Orange
County who went and built PowerApps
digitally transform how he runs his classroom. And he actually did
this in a way where he built different PowerApps
to help the students learn more efficiently as well as a game application app
to help students track how well they’re doing on tests and how well they’re doing from attendance perspective. And Brian tells
a story about how PowerApps changed
his classroom and that it dramatically improved
the results on tests as well as efficacy of the coursework that
they’ve learned so far. And Brian has
no coding experience. He’s not an engineer.
He’s a teacher by trade. Went to school to
be a teacher, but he was able to go take
PowerApps off the shelf and start to transform
that last mile of his classroom. Another great story
is Mohammed from Harkey Pharmaceuticals
based out of Iraq. A real consumer of PowerApps. They had a process which was heavily manual between e-mail, paper and Excel files
to go track, visit other pharmacists
and doctors. But Mohammed, again, with
no technical training, without being a developer, he’s actually a pharmacist by schooling was able to build a completely digitally transform
process with PowerApps, Microsoft Flow and PowerBI to change how Harkey
Pharmaceuticals engages with and helps their customers operate better and then make
sure that their employees are able to better
track the work that they do and what they’re doing from a territory management
perspective. Again, no development
experience but able to go transform that last mile for his company
using this platform. The fourth item. This is Evan. He works at a consultancy called Confluent which helped
a company called IPS. And Evan is a developer or basically an
engineer by trade. However, he was able to
use PowerApps to build an incredibly robust
complex application to change the way IPS does electric motor
inspection and repair. And they did this using the powerful WYSIWYG capabilities
available in PowerApps. You can have a picture
of a particular motor and as people go and inspect it, they can click where
they’ve actually inspected, where they see issues and
rate different problems, and by doing this they were
able to go from a pen and paper white board process
that fully digitized process. And this digitized
process is able to actually enable all kinds
of new customer experiences. Before they wouldn’t
be able to reach out to their customers
and let them know that the repair is almost done, but now they can do that because each stage and piece
of the process to go repair the motors is
tracked digitally and you can go generate things
like e-mails and so forth. And again something that’s
not available off the shelf, not even available by customizing something
off the shelf, but a custom line of business application that’s
very complex it had to go be built using
the PowerApps platform to go make that real. And lastly, I say
the most complex. We have ISVs and partners who are building
on top of the same platform. This is a picture of
the bank’s site team. They’re a professional
development organization. They sell software
and they’re building their entire application
around better engaging customers when they go
walk into banks on top of the Common Data Service
and on top of PowerApps integrate
with Dynamics 365. This is a full development team
with source control, dozens of engineers
and they’re able to go make it work using
the same platform. They don’t have to go look into building
everything from scratch. From the most simple
SharePoint form to the most complex
ISV application. All they can happen
without cliffs on a single business
application platform which includes PowerApps, PowerBI and Microsoft Flow. And this is really
what our vision is. We’re all about
democratizing app creation. We want to make it possible
for people who could never change their business to start changing
their business today. And this is something that
Microsoft is not new at. This is something Microsoft has an incredibly rich legacy
of doing from Excel, Access, InfoPath,
Visual Studio and Visual Basic across all of
these different things, Microsoft has been
at this for decades. And really what we
look at with PowerApps, Microsoft Flow and
PowerBI is the cloud re-imagination of
those particular capabilities, and we see that momentum
in the market. If we go look there’s tons and tons of huge logos
that you may recognize. There’s over 1.1 million monthly active users on this PowerApps
and Microsoft Flow. There’s over 213,000
organizations. All of them are using these capabilities to transform how they actually
run their business. And we’ll talk about through another demo in just a couple of minutes a real example of
how a customer has done that. And just another element
of it is PC Mac. They did a review of the low-code high productivity
application platforms out there and PowerApps
was their editor’s choice. And that’s because it just has so much power that
you could go use. And again, really what
that means is no cliffs. You can start simple, basic UI, basic forms over data, but as needed you can earn
more and more expressions and more and more capabilities without having to go to
a different platform. And this broad spectrum
of capabilities including the ability to go dive into Azure is something that
only Microsoft can do. And to show how real that is, we’re actually going to turn
it over to Ryan Cunningham, who’s going to do a live demo
and actually build a real PowerApp that matches one of
our customer scenarios.>>I want to talk
about Intercars today. Intercars is the
largest distributor of automotive spare parts and
repair supplies in the EU. They serve 16 countries, they cover on more than 10,000 individual customer locations. Now their field salesforce
of more than 600 people, that means they
are visiting almost 100 locations a month
for some people. That’s a constantly mobile on
the go frontline workforce. Now, what we’ll talk about
is how PowerApps can start to help with some of those
frontline business scenarios, automate the types of
processes and build the applications
that you just can’t find anywhere else
or buy off the shelf. Let me give you an example
of one of those scenarios. Now Intercars sells not
only automotive spare parts. They also sell repair supplies
like this tool chest. They come stocked with tools and individual wrenches
and socket sets and that’s a great deal for them the day that they sell it. But a year down the line, half of these wrenches
are missing. Some of the sockets are broken, and restocking this tool chest becomes a whole different
proposition entirely. The classic method of
that seller who has 20 minutes a month to
be on the site to bring in a 200 page parts catalog and flip through it page
by page and try to find this one particular
little socket set to make a manual order just was not
scaling with that business. So today we’re going to
talk about how a company like Intercars can very rapidly build extremely custom
applications for a scenario like this very
quickly in PowerApps. Let’s dive in and take
a look at how it works. Now, we like to talk a lot about how powerful PowerApp is and
how quickly you can build. And they’re all a lot of
great ways to get started, you know not even
starting from scratch with great templates and samples
to jump off the bat. But today we are going to
start from scratch from a completely blank canvas to show just how powerful
this platform is. Now as PowerApps loads up here, you’ll notice that what
you’re about to see is not your traditional software
development environment. In fact it looks nothing
like Visual Studio. It looks a lot more like PowerPoint and
that’s no accident. I’ve got screens of
an application that I can add just like I would add
slides in a presentation, and visually they light up for me right on my canvas here. And I can use my Office skills to do very simple things.
I can theme it. I can make it look
like my company by inserting a logo or
an image element. And all of this is very
easy to do with my mouse. Let’s go pop in our logo here from our computer
and upload it. And I have full control over the visual appearance and
look and feel of this app. This isn’t a config thing. I can make this look and position exactly
how I want it to. Now of course I’m not just
pushing pixels around. What I’m also doing
is able to work with a whole rich set of
connected data sources. In fact, right out of
the box PowerApps connects to more than 200
individual applications and services where my company
might already have data. Everything from Adobe, the Zendesk and
everything in between. I can do simple things like connect filtered search of
tweets about my company, more sophisticated
things like access a sequel server running
on prem through a gateway. But of course actually in
this case of Intercars, we don’t need any of that because we have something
even more powerful. We have the Common Data Service. Common Data Service
is the data platform that comes with PowerApps. That as part of
this Spring moment is getting a
radical expansion of its capabilities and for our customers that are
building new applications, comes with rich schema and
logic right out of the box. For customers like
Intercars that already have data in
the Microsoft Cloud, in Office 365, in Dynamics 365, that data just lights
up by default. So we’re going to pull in a list of accounts and a list of products and a list of line
items of those products here, and PowerApps already richly understands the nature of
that data and information. I can put templates
on this type of information and we know
where to put the images. We know where to put the titles. We know what rules to enforce when these
things get updated. And that all is
just coming natively out of the box with
the Common Data Service. Now of course my Office
skills still apply. I can make a title larger, I can go bump up the font size, all these things are
very easy and familiar to do even if I’m not a
traditional software developer. But, this is not PowerPoint. These are not static boxes
and static pieces of text. These are actually bound
to data under the hood, connected to that list of accounts in my business
database, in my platform. And I can change that
binding on the fly. I can say, “Hey, let’s
make this the full name, and over here let’s make
this one the address.” And just like that
my application is updating in real time
as I’m designing it. I’m actually using the app
as I’m building it here to get instant feedback about how my changes
are taking effect. It really helps, the less
traditional software developer make very rapid progress here. And of course I’m not even
limited to a single screen. I can go build navigation
into this application. I can say, “Hey, when
I click any one of these icons go take me back to another screen
and keep building.” Now, all that is
powerful and all that is fast but, I’ll
level with you. This is something I can do in other low code
platforms as well. Here’s the thing. This
is right about where every other low code platform on the planet stops being low code. And when I want to do something a little bit more sophisticated
or a little bit more custom tailored to
my business than just formatting a list and
putting a logo on the top, that’s where I quickly hit a cliff in a lot
of other platforms. But with PowerApps we’re
just getting started. And I want to show
you a few elements about what makes this true, this ability to very quickly scale and sophistication
and amplify what a whole new range of micas can do inside
of this platform. And we’ll start with something
very simple as an example. Now I can add text boxes and images and the whole
nine to this application, and I can you know just
like I could in PowerPoint, type a static piece
of text into this box. But you’ll notice
as I’m doing that, that silently behind
the scenes we’re updating this Excel like formula
in everything that I do. Now, in fact, every single
element and property of every single control
in this application is governed by an Excel
like expression, or by a language that millions and millions of people
already know how to speak. In fact, we honor the entire Excel syntax right
here in PowerApps and we’ve added a few things to it to help you build
applications quickly. It means that I can very
quickly get productive and do sophisticated things
without having to learn an entire
programming language. The Delta to get here
is just much smaller. So let me show you
a really simple example. Let’s say instead of just typing a label into
the top of this page, let’s go grab the thing we selected out of the gallery
on the previous screen. And you’ll notice here that
IntelliSense is actually helping suggest to me
all those same fields, all those things I know
about this account. I can go back and pull through the full name out
of IntelliSense and it’s going to
update right inside of my application
just like that. Now I can build myself
a little bit of a back button, and now we have
an app that’s actually responding to context
across screens, passing the value of the customer that
I’ve selected here. Now that’s a very
simple principle but it applies very powerfully to
the rest of this application. Now, let’s use it. Now remember, we’re trying to prove
the process by which we restock a tool drawer here. So let’s go add a list
of those tool drawers and let’s wire it up to
our list of products. And again let’s pick
our rich template for this particular list. Let’s get something
nice and visual here. Now we don’t want to
show all the products, we just want to
show the last one that this particular
customer backed, so we’re going to pop it
in here and tighten up this particular little gallery to get to this tool drawer. But we want to go
further than that. We want to look inside
the drawer and see what particular sockets and
wrenches we want to restock. But we can do that too. We’ll add another list. We’ll bind this one
to the items that come inside of the tool drawer. Now, we don’t want all of the socket wrenches in
our entire database, we want to filter
it down just to the ones relevant to
this particular product. And again, we can do that with this very simple Excel syntax that we can learn very quickly. I can say, “Hey, let’s filter
this product items list.” And again just like in Excel, PowerApps is going to
walk me through it. It’s going to give me
a nice template to fill out, the IntelliSense is
going to help me. I’m going to say, “Hey, show me all the product items
where the idea of that product item equals the thing that I just selected
on the previous step.” In fact IntelliSense
is smart enough that I’d barely need to type
it all to get this done. So I wrap that up
and then PowerApps is going to go off to
the server grab back from the Common Data Service
just the wrenches in my particular tool drawer. Now of course, I
still don’t want to hunt and peck through a list, I want to see what
this thing is supposed to look like in real life. And it turns out that we’re
laying out tool drawers on a predictable grid
and in PowerApps I can build that with
just a few strokes of my mouse. I can literally recreate exactly what this tool drawer
is supposed to look like. So now my employee rather than walking in
with a big book of spare parts just opens up a drawer and sees what
it’s supposed to look like, sees what’s missing and
can do the difference. Now let’s finish
this scenario out. I want to, when I actually
select what’s missing, go collect that
information and start to build the order of
what I’m restocking. I can say, “Hey, when
somebody presses a button, go collect together
the items that they tap on.” Again, I’m just using my mouse
to collect these things. And I can then do things
with that collection. I can go to the fill property, the color behind
this particular wrench and I can write logic. This is rocket science kind of software development here but
we’re making it so simple. I can just say, hey if this item is in that collection
I just created, again IntelliSense helps me out, let’s make it blue, actually blue violet, beautiful color. Now, as I start to
build that collection, I also obviously want to
see what I’ve collected. So I’m going to
go insert a table. I’m going to drop
it to the bottom. I’m going to bind it
to that collection we just created on the fly
and I’m going to say, hey give me the name
and the let’s say how about the quantity of the thing that
we’ve selected. Tighten that up, and
just like that I’ve built a process that is extremely custom to my business
where I walk in, I pull up in the drawer and
I say, “Oh, that’s missing, and that’s missing,
and that’s missing, and that’s missing and we
need one of those too.” And just like that we’re
building this custom order. There is not another platform on the planet that can go that fast and build this custom
of a process without touching
a single line of code. PowerApp is extremely
powerful in that regard. But of course,
there will still be problems for which we
need to write code. And for example I’ll come
back to this first step. We skipped over a detail here. It turns out it’s
not actually all that useful to give
every single one of my 600 field sellers
the list of every single one of the 10,000
accounts in the database. I don’t want them
to have to hunt for where they need to visit. I want an employee to know exactly where to
go in the morning. Given their geolocation which we know because this is
running on your phone. Given their identity
which we know because you’re logged in
with Azure Active Directory, tell me exactly where to go. Now, that’s not
something I’m going to write in an Excel expression. More power to you if you can. But that’s a great opportunity for a professional developer to create a building block
that comes in and augments this experience
without having to throw out all the goodness that
we’ve got here in PowerApps. And we’ve done
just that. In fact, we’ve started out
this Azure function. It’s going to run
server lists and on demand. This professional developer
didn’t have to worry about infrastructure
or anything. They just write the code
that says, “Hey, given this geolocation
of latitude longitude, where should I send
my person next?” And you’ll see we’ve kind of stubbed out the answers there. And if you do this in Azure, if you do it in Azure functions
or API managements or a number of
other Azure services, we make it really easy for you. We give you this nice export to PowerApps and flow
button right within the professional
developer experience that lets you light this up in a few clicks for a low code developer
working here in PowerApps. And in fact just like that, all these data sources
that we showed earlier, the whole 200 that
come out of the box, we can add to that list with any custom data source,
any service, anything we can, we can put a rest API in front of and
wrap in a swagger file. We can bring here into
PowerApps and allow our local developers to go even further without
hitting that cliff. So I can say, “Hey, don’t just point this at
the list of accounts. Let’s actually go point this at the route mapping function
that we just added, and let’s pass it our location.” I’m using all the same tools
that I just learned before. I’m going to go
past at my latitude, and my location.longitude, and just like that
it’s going to go fire off to that Azure
function and bring me back in a few seconds the list of four stores that
I should visit, not the list of 10,000, that I might want to go
to in the whole database. And that’s how we hit a whole nother level of sophistication in
these applications. Now of course,
that’s still not all. But at the end of the day
it’s not just about this one application or this one screen or
this one tool drawer. It’s also about how these things
work into the fabric of our business processes across
all of our applications. And to give you
a simple example of that, if we continue
building this app out, we’ll cut forward here in a second to a more
finished version. At some point I’m going
to place this order. At some point as a seller, I might want to request
a discount for this order. Now, I may or may
not actually have the authority to approve that discount on the fly and in fact for a distributed
sales team, different sellers have
different levels of ability to approve different discounts when they’re out in the field. Now, still I can automate
that business process and I still don’t have to break into code or expensive customization. In fact, I can build that whole approval process
in Microsoft Flow. Microsoft Flow comes
with the platform and it allows me to visually logically design
business processes like I would draw
them on a whiteboard. It’s connected to
all the same data sources that PowerApps can pull in and I can very quickly build logic just like this. When a new order
hits the system, let’s go grab
everything we know about the user requesting it out
of the Microsoft Graph. And then if
that discount request is over a certain threshold, in this case 25 percent, let’s go kick off
an approval process. And I can write this just like I would compose it as a message. In fact I can pull in
dynamically data from those previous steps what we know about the user from Office, what we know about
the order from the Common Data
Service and I can use it to build
this approval process, Microsoft Flow takes
care of the rest. So let’s see this whole thing
in action end to end. I’m going to pop over
to my mobile phone here. Now, Intercars employees can work in a Bring
Your Own Device culture and Intercars developer can publish this application in an instant. It will run inside of
PowerApps container, on iOS, on Android, it
will run on the Web. All I needed to
do is log in with my company ID at
the front door and I can get a polished application that looks awesome and it’s just
for my business process. This was built using
exactly the same tools that we just saw. So, I’ll get up in the morning, I’ll say, “Hey, where
should I drive first?” The application will suggest
to me exactly where to go, how far away it is, promotion I can offer
that customer when I get there. I can dive in and I can see just a slightly richer stylized
version of this process. I can pull open a door
at the tool chest. I can say, “Hey, we’re
missing that one, and this one and
this one and that one.” And I can build this order
all the way through. In fact, I can request
my discount here. I can even sign it and use all these great touch
device capabilities inside of PowerApps as well. Now, I’ve requested
this discount, it’s over my threshold. You noticed as I did that, this button for submit
an order is actually changing to a request
approval button. And as I request an approval way over my discount here,
and I send it off, it’s not going to immediately commit that into the system,
it’s going to tell me, “Hey, your request is pending, somebody will get
back to you soon.” Now for the kick of this demo, I happen to also
be the approver. And so I can see that that push notification came
right in from Microsoft Flow, right here on the mobile device
of the approver. I know exactly who
requested the discount, how much they requested it for, and I can approve or reject
and add comments right here within the fabric of my experience without
even missing a beat. And Microsoft Flow
handles the rest. Soup to nuts it keeps track of exactly the full approval
history and logs everything, in fact logs
all that information right back in the Common
Data Service for me. So let’s switch back
to the desktop here. And you’ll notice that
I actually also got that approval message
right inside of my e-mail, right inside of
Microsoft Outlook. At the same time that
I got it on my phone, I can richly use it right
inside of the rest of the tools that I’m already using all day long for productivity. And that’s really
powerful as we start to zoom out further
from this experience. Again, it’s not just
about the one application. It’s not just about
the one business process. It’s really about how we
start to use these tools, these PowerApps platform
to richly customize and extend everything that
we get from Office 365, from Dynamics 365, from the intelligence and the action that we can take on top of that. For example, the datas in
the Common Data Service, the model is richly understood. Building business intelligence
on it is a breeze. I can quickly build a dashboard in PowerBI
that says, “Hey, from my back office
exactly what did we sell the stingray
auto repair yesterday? And where were they or how many support incidents
do they have open?” I can even build a
rich custom visual to show me exactly what
this customer ordered. Now, this whole custom
visual on the right, was that developed by
a professional developer as a PowerBI custom visual? No. That’s a PowerApp. I built that in
exactly the same way that I built the
mobile application that my field sellers are using out at every auto shop
all day long. And in fact that same pattern extends across the rest
of my Office experience, here in SharePoint where is
where I’m uploading images of these socket wrenches and logging which position
in the drawer are they. This is not the standard
SharePoint forum that comes out of the box. This is a PowerApp. It’s got a customized button
on top of it. In fact, now every
SharePoint form, every custom form across SharePoint Online has
the same customized button. Guess what happens
when I press it? You’re right, we fire
up PowerApps and you use that exact same design
experience that we saw in building the original
application to build out custom experiences inside of the rest of your apps as well. It’s not just about
the frontline worker scenarios. It’s not just about my field sellers out
there in the field. I’m also using this platform to fundamentally transform
my back office as well, and the rest of our processes
and applications around it. See on the other side
of Intercars business, every time a field seller is out there ordering
more socket wrenches, we have to maintain
a whole network of supplier relationships as well. And we have to know
where we’re going to get those socket wrenches from and how much they’re going to cost, and if we can get them from
a better place tomorrow. Now, we can still manage all of that on
this rich platform. In fact we’re here in the PowerApps
management experience, we can see all of the entities
that we’re managing across our business
right here in one place. All the individual accounts and appointments and addresses
and products and suppliers. In fact, even here we
can richly model and extend that data model that comes out of the box and
add our own entities, our own fields, our own particular rules
about what to track. It’s super easy to do
right in context here. For example, I already have one. If I want to go create a status field and I want to make it of
a particular type. In fact, I could make it a
static text box or a number, I can even make
it a multi-select, an option set, and I can
even create that option set right in line here
of my application. I could say, “Hey,
one status is good and another status is not good.” And very quickly I can customize the surface of this application at
the data layer as well. And then PowerApps gives me the ability to quickly
build on top of that. Now, I can build
the Canvas-based applications that you just saw me create, the very visual PowerPoint like applications where I
started my user experience, but I also now have
another option in PowerApps. I can model these
applications as well. I can start at this data model,
at these relationships, at the rules that are attached to these individual entities. And I can then automatically generate applications
on top of them. Let me show an example
of one of those, then we’ll pull back and
see how it was built. Now this is a supplier
management dashboard for my back office to track all the individual suppliers
that we have relationships with and all of their status
in adding to this system. And in fact, we’re
right in the process of adding a new supplier,
AC Delco here, and I can build a rich
application completely customized, the rich forms and business processes that I need to onboard a new supplier
into my system. In fact, I can even model this rich business process
that shows me step by step, walks me through
as an employee at each stage of the process
of what I need to do. So it really cuts down
on the training time and enforces consistency across
this particular application. I can say, “Hey,
have we received a proposal from the supplier?” Yes. You know, when did we
get it? We got it today. or we completed
our legal review. All these things are
mandatory for me to proceed to the next stage
of the process. I can even then continue
to sign things and it will tell me exactly what
to do as I go. And in fact, you’ll notice
a nice little thing down here, it automatically is calculating for me that the contract
should start 14 days from today from the day that I said that
we should kick it off. Now, how did I create all this? Did I build all of these with individual check marks and lines and arrows and fields like I did for the tool box application? Actually no, I modeled
the application. I modeled the process. I visually designed
the business process and said at each stage of
onboarding a new supplier, here’s exactly what
we need to ask for in the order we
need to ask for it in and here are
the fields that are required to go on
to the next step. And then I brought
all of that data, the entities involved in that and the processes themselves and I brought it
together in a subset of an application module. And then I press publish, and all that great
user experience which by the way is responsive
right off the bat was just automatically
generated for me and I can use it everywhere
that I need it. So extremely powerful
capabilities to both start at a rich user experience for your highly
custom processes, and start at a rich data model
and automatically generate that user experience for your more immersive back office scenarios and application. Now I can even set these automatic
business rules attached to the entities and the data
that run on the server. I can say, hey, for
example that rule that automatically calculated
the contract start date, this is exactly what
it looks like to build. I didn’t have to write
any code for that either. I just said hey, when all of the individual
review steps are complete, if we have a contract
receipt date, let’s go automatically
calculate 14 days from now. That’s when the contract
start date should be. It’s just a couple of
drop downs I can publish it. And because that’s running
on the Common Data Service, because both of
these applications are built on
that same data platform, I can leverage that rules
and those server side logic in my Canvas-based
applications as well. So back here where we
started in PowerApps studio, I’m building out
this sort of tablet or web app for supplier management
and status management. I can come in and leverage
exactly the same logic. I can say, hey yes,
we’ve completed all of our reviews and our receipt data
of that contract is today and I can go update
this thing and just like that the same rule
will run on the server. It’ll go past
that information off to PowerApps and the start date itself has been updated to the exact same date that it was on the model driven
side of the house. An incredibly
powerful set of tools. We really just scratched
the surface today. And in fact in a moment we’ll go back to Charles and talk in a little more detail
about many of the new features that are
coming to the platform. But it’s exactly these tools that customers like
Intercars are using to transform their
business processes from the frontline
to the back office, and everywhere in between. And it’s the same set of
tools that you too can use to bring digital
transformation to your company. Now we’ll go back
to Charles and talk more about all the details of the new goodness
that’s coming to the platform in
the Spring release.>>And now we’re going
to drill down into the new details and new elements of the Spring release
for PowerApps. We’re going to talk about the key capabilities
that are included now. The first and most important is that PowerApps is tightly and natively integrated
with Dynamics 365 as well as Office 365. And for the first time
Dynamics 365 for sales, service and marketing data is natively available inside
the Common Data Service. Another interesting
and powerful element is a new model-driven
UI capabilities. These are in addition
to the existing WYSIWYG, Canvas-based app creation that you know and love
from PowerApps, enable a new set and new type of applications
to be created. The third item is that
the Common Data Service and the Common Data Model have
taken a huge step forward. There’s a bunch of
new capabilities including the data layer
as well as a new and much more clear our Common Data Model that can
be used across applications. And for those situations where the Common Data Service
is not the right choice. We have over 200 connectors, tons of great enterprise
connectivity as well as new data integration
capabilities to bring data into the Common Data Service
when and how it makes sense. And lastly, very rich enterprise governance and
compliance capabilities so that you can go
better your business on the PowerApps platform and
run the most mission critical workloads on top of it and not worry about hamstringing or restricting citizen
developers within your organization
and make sure that you still are being
compliant every day. If we go look at
that integration element, this is a great picture to show what it really looks like. We have Dynamics 365, Office 365 and customer applications all built on
top of this single platform. And this platform spans
things like Microsoft Flow, the Canvas-based UI
creation capabilities, model-driven UI
creation capabilities, all of it on top of a very rich Common Data Model
and Common Data Service. And if we go look
to the bottom of this diagram there’s a few
really important bullet points that we want to make sure
that we hit and make sure you take away from the spring
release of PowerApps. The first is that
all the Dynamics 365 data is now natively integrated inside of the
Common Data Service just like we talked about before it’s available in
place. It’s not a copy. It’s not a data integration. It’s available right inside the Common Data Service
which allows you to build incredibly powerful
applications against your existing business
data with ease. And this is what we
think about and what we talk about when we mention that the Dynamics 365
integration between PowerApps and the Common Data Service is better than ever. And this is really only
made possible because of these new Common Data
Service capabilities and the new Model-driven
UI capabilities. And PowerApps, again, it’s just an incredibly
broad and rich set of capabilities that
make it possible to go build application
experiences that complete that last mile of digital transformation we talked about earlier in
the session today. And to go make that real
if you look at Office 365, we can look at four great
examples of integration. The first is PowerApps embedded inside of a SharePoint lists
as a SharePoint form. PowerApps is the natural
and class successor for form customization
inside of SharePoint and it makes it easy to go take your great skills and
great capabilities that you’ve constructed in the platform
and bring them into the Office apps where your employees are working
each and every day. In addition to that,
Teams is the same way. You can go out of PowerApp or Microsoft Flow associated
with any Team channel. This makes it very
easy for people to go interact with their PowerApp
in the context of Teams where
the conversation is already happening within
your organization or without forcing them to go learn yet another application or another place to go
discover those capabilities. And Microsoft Flow it sits there as well and
enables all kinds of great automation on
top of interacting with chat messages as well as file movement and
things like that. Next, we also have incredibly
powerful Excel integration. We have Microsoft Flow and the Common Data Service natively integrated
inside of Excel so they can very easily
trigger your workflows based on what you
select as well as go import data from
the Common Data Service into Excel and do all the slicing
and dicing that you want and that you’re
used to doing. And this is all brand new
capabilities announced as part of this spring release
for the PowerApps platform. And fourth, and
a very interesting element is also the PowerBI integration
that we have where you actually have PowerApps
embedded inside of PowerBI as well as PowerBI
embedded inside of PowerApps. And what this allows
you to do is when you’re actually looking at
your data to get insights, you’re able to
very clearly embed PowerApps to take actions on those insights and that data. This makes it easy.
You don’t have to go switch again to another context completely in the experience
you’re used to with PowerBI, you can go take action. And a common thing
we’ll hear from customers is you may be looking at say
salesforce performance, higher employees
are actually doing. And if the performance isn’t
good you may want to have a PowerApps form
available right there to go trigger a workflow
or remediation steps to hopefully go improve
that performance. And that type embedding
really helps us transform what
the experience is like for our customers
and your employees when it actually comes to
interacting with your business data and
your business processes. It’s available
wherever they are. If we then turn over to
the new UI capabilities, we have the WYSIWYG, Canvas-based app creation which is super familiar and very commonly used
today for PowerApps which allows you to start from a beautiful PowerPoint like UI, bind your data as needed and actually create
an experience that exactly matches what your business process
and tasks require. Additionally, we have the new
Model-driven capabilities. And those are
available just like the Canvas-based ones
on all types of different devices
out of the gate, whether it be a mobile
device or a tablet. And for those
Model-driven capabilities, those allow you to
start from your data. Instead of using canvas to start from the UI and then
bind to the data, with Model-driven you start by defining your schema,
your relationships, your entities, and then we automatically will
generate UI on top of that. You can go tweak the UI
as you need but it’s very much driven by the data and the relationships of those data. And these again are available
across tablet devices, desktops with a rich app
module creation experience and across all
different form factors. And these two types of
applications allow you to again spend that whole spectrum of app creation without any cliffs, whether it’s very simple basic binding to
data all the way to the most complex UI
that you want to hyper tailor to what your customers
or employees require, you can do both of those on
one platform with PowerApps. Additionally, if we go
change and drill into the WYSIWYG with
a little bit more, it’s very, very easy for you to go manage that experience of what the UI looks like
by screen by screen. And you can do this
to go mash up data across different data sources
as well as actually use templates so you can get
out of the box support for common business
processes that you may have to go interact with. Things like inspection or field services are very common
scenarios for our customers. We have rich templates and
rich UI available out of the box to go enable
those on top of your existing business
application data. If we look at
the data that actually powers the applications
that you construct, we have the Common Data Service and the Common Data Model. And the Common Data Service
as we mentioned earlier, the important element is now all of the Dynamics
365 data is just available natively right inside of CDS without having to
do any data integration, data copying or data movement. And that means if you create a PowerApp it will automatically update in place
the same data that your salespeople would see
in their sales application, or your marketing
people would see in their marketing application, and I say again because it
really is a single data store. We’ve been able to
enable this as part of the platform with complete
backwards compatibility. So that means if you already have customizations
and experience on top of Dynamics 365,
they don’t change at all. You don’t have to
do anything to take advantage of
these new capabilities. They’re just available
out of the box. And if we go look at
the Common Data Model, that’s something that
allows us to find very common business
entities and objects. And this is a very
important thread throughout the entire platform
because it enables tight integration
by our ISVs and partners to go do additions. And if you look at
what Adobe has done, they’re actually going
and doing extensions of the Common Data Model
using their own XDM to create a combined
unified view of business data for
our joint customers. This Common Data Model is a key kernel of the Common Data Service
to go make it possible. If we go look at
custom application development, we would recommend to
start first and foremost by looking at the
Common Data Service as a place that you
store that data. But the reality is you
can’t always do that. Sometimes you have a huge number of systems already in place
within your enterprise. And for that Microsoft very uniquely has over 200 built in connectors that
you can drop into your application without
having to write any code. You can just snap them
in, and this makes it possible for you to
go connect to your data wherever it is without having to worry about
how you bring it into the Common Data Service or do a data
integration project. And these connectors spend
the full spectrum of what your employees would require or what your business
would require. There are things like
file services, SharePoint box, Dropbox, web APIs to
cloud services like AWS, Azure and so on as well as common business
applications like Workday, Marketo, SAP and so on, all available out of the box very easily and very natively integrated with what
you need and it is the same application platform
for UI creation. And these different
data sources are again a really key element that
we make very easy to use. And we do that by what we call mashup or composite
applications. So composite
applications allow you to go to multiple data sources, say Dynamics 365 and SharePoint and bring them together into
a single experience. And this mashup capability
again is something very unique in the industry that you can
do without running any code. And even if we don’t have over one of those 200 connectors
as one that you require, you can go create your own. You can create a custom
connector and drop that in with your developers and
with your code and that will enable it
inside the same system. And to operate on all these
different data sources, there’s a very simple
Excel like language built into PowerApps
and which we saw in the demo
from Ryan earlier, this simple language makes
it easier to do lookups, filters and so on without
going and having to learn a brand new programming
language sentence like Excel and also without having to go drop
in to developer experience to go
code everything up. And again, all out of the box, all on top of those same, Canvas-based and
Model-driven app creation experiences, they were
just talking about. Another core part of the PowerApps platform
is Microsoft Flow. It enables rich workflow
capabilities as well as business processes to actually manage the UI experiences
for end users. Microsoft Flow supports
the same 200 plus connectors as well as the Common Data
Service just like PowerApps. And that makes it
so you can very easily build
automations as well as applications that tie together tightly and build on
top of the same data. And not only can
you actually trigger Microsoft Flow based on changes and data with
events and triggers, you can also trigger based
on a button press or activity taken inside of UI created
inside of PowerApps. And altogether this
makes it very easy to transform repeatable
simple tasks within an organization to
actually automate them away and you can also go
use business processes to completely control
the experience for your end users to make
sure that they complete the necessary steps and
necessary gates as part of say interacting
with the customer or closing a support ticket. All that is possible using the Microsoft Flow
capabilities which is richly and natively integrated
inside of PowerApps. And across both Microsoft
Flow and PowerApps, there’s enterprise grade, admin management and
compliance management. And the way this works
is we actually have a central admin center
which looks across all your Dynamics 365 applications as
well as PowerApps, Microsoft Flow and
Common Data Service to enable a rich set
of capabilities. First, as it’s all managed
inside Azure Active Directory. Your user list, your security policies like two factor
authentication as well as conditional access
so that you can have management around
devices with Windows, Intune or other MDM offerings. Additionally, in this admin
center there’s rich reporting and rich auditing
capabilities so you can see what people are doing with PowerApps and Microsoft Flow
inside your organization and make sure that they’re
behaving according to what you actually want them to do based on a compliance and security perspective. And beyond just reporting, there’s also data loss
prevention policies. These policies
make it so that you can’t go and actually
flow data from a high business impact or a very sensitive environment to a lower sensitivity environment
like say the Internet. So a common example
we may see from our customers is they
don’t want to just say take something from a locked down SharePoint document library and then send an e-mail out to potentially people
outside your company and you can actually enforce that with the data loss
prevention capabilities inside the platform. Altogether, all of
these different capabilities come together to provide an incredibly compliant and
enterprise grade experience to not only manage the applications that
Microsoft builds, that’s our dynamics 365 but also what ISVs build
that also extend the same application platform
as well as what your IT department or individual employees as citizen
developers may build. All of them could
fall under the same centralized unified
admin experience with those rich capabilities for both auditing, reporting
and enforcement. And beyond that, there’s also a very important element of the platform which is AppSource. AppSource is
the one stop shop to go install applications
from ISVs and third parties as well as
partners of Microsoft right inside your Common Data Service or your PowerApps instance. They all interact and play together in an incredibly
powerful and unique way, and they were on top
of that same platform. So all of those rich governance
capabilities that we just talked about would apply to things that you would solve
from third parties as well. In addition to going
outside of your company, there’s also an organization
level AppSource capability. So you can actually construct applications within
your company and publish to your employees and they
can actually go pull them down and make use of them in
an easily discoverable way. And again, all of this is built on top of that
same platform with the same Common Data Service
with the same business data and the same security
all bundled together. And that really
goes back to what we talked about in
the very beginning today. When you go look at
the digital feedback loop, we go bring together from Microsoft Dynamics 365,
the marketing, sales, service, operations,
financials, and talent applications as well as those little pebbles in between which you can get
from ISVs or build yourself. They all play together
and they all integrate together on top of one platform, the Microsoft platform for business applications
which is PowerApps, PowerBI and Microsoft Flow. And with that, thank
you for your time today. And I’ll just ask one call to action of people that
are listening in. Go check out PowerApps. Go to powerapps.com, sign up and in just a few minutes
you can go build these same applications
that you saw today of the demo and on these slides
in the same workflows. And I look forward to
hearing from you as you go and actually
build those. Thank you.

How A.I. Will Impact Marketing and Growth in 2020 | And Where to Start


Hey everybody!
In this video we are going to look at the first steps to applying
AI to marketing and growth. We are going to cover the must-haves,
the should-haves and the nice-to-haves of different applications.
We built this graph for the first time in 2017, but a lot
has changed since then. So, it’s time for an update! Hi, here’s Bernardo again! Two years ago at Growth Tribe we started
to train professionals in marketing and growth on how to use
AI in their businesses. It became clear that having an
understanding of the potential applications of AI in business would
definitely bring a return on investment for a career path or for a
company’s capabilities. Not only the more traditional uses like
lead scoring and churn prediction were becoming more accessible. Text analysis and computer
vision have now a much wider adoption in copywriting and campaign optimisation.
This has actually been supported by the rise of collaborative platforms. These
tools allow professionals who are not native to the area of analytics to
evaluate, prototype and communicate the results to their teams. Then we face the problem:
Where should they start? If there was a list of skills that a self-reliant
growth marketeer definitely had to learn in 2017, there were other less mature
applications that should just be understood. In this way, they could know what was
possible and evaluate future opportunities. So we decided to put this in a
diagram, ranking the maturity of the AI applications to marketing and growth.
Now, two years and many early adopters later, the priorities list has changed.
All the applications became more mature and the landscape became flatter, showing
a smaller maturity gap between the must-have and the
nice-to-have knowledge The most mature applications, those that a professional has to
master, are still the same. Using predictive modelling to anticipate the
steps of the marketing funnel and clustering techniques to create data
informed personas are still the fundamental skills. These two forms of
machine learning, when an algorithm learns from examples without being
explicitly programmed, became even cheaper and easier to understand. The book Prediction Machines from 2018
is an excellent publication that explains the economic impact of this cheaper
and more accurate technology. One of the main changes is that we
downgraded recommender systems from I should have to a nice-to-have. Despite being one of the most
influential applications in our daily lives, by suggesting which songs, videos,
products and news we should consume, The necessity of having a recommender system
is reduced to a small group of companies These are businesses, typically
subscriptions or e-commerce that have a very dimensional number of products and
services in which users would have a hard time to find their niche
preferences. This is the so-called longtail problem. Learning how
recommenders work is important for us as modern citizens but not so applicable in
most of the business models we work on. Now, the analysis of human
language stayed as a should-have. Natural language processing has definitely consolidated its applications. It’s cool to understand how the voice assistants
offered by the big tech companies work. but it’s even more interesting to
learn how to improve copywriting by analysing the sentiment and the
implicit personality of your customers. A simple text mining algorithm can
help a company to identify topics in customer reviews that would be
impossible to be identified by a human. Moving now to psychographics.
Remember in early 2018? We had the data privacy scandal
involving Facebook. It revealed that Cambridge Analytica had harvested
millions of people’s profiles without their consent and used this data for
political advertising purposes. They used online advertising to target voters
in the US and in the UK with specific messaging in conformity with their
personality and previous beliefs, which is defined as the use
of psychographic data. Since then, public ethical concerns and
data privacy regulations like the GDPR made marketeers to be more diligent and
try not to look creepy with their content. The risk return here is still unclear so
we decided to keep psychographics as a nice-to-have. Finally, good things come for those who wait.
In 2017 we first saw image recognition as a hard-to-acquire skill. Teaching computer
vision sounded challenging, even with the use of no-coding tools. To our surprise,
image recognition became one of the most relevant, easy-to-acquire applications. Image scoring for ads can make a junior
professional produce visual content like an experienced one. Also, the
company saves resources by not having to test so many variations
to check what will actually work to generate traction and engagement. Use cases of image similarity
showed good value as well. Basically, these look-alike algorithms
find products that resemble each other and that customers might like them too.
One tool that really represents the time we live in is DataSine. It uses AI to
provide text and image analysis to create ads, landing pages and emails that
are then recommended to your specific personas. We tested it one year ago and we have
been using it in our training since then. So, from traditional applications to the rising
ones, the next coming years are promising. Marketeers will have even wider access
to tools that use visual analysis instead of coding. They will continuously
exploit tools that improve and scale up personalisation in a timely and relevant
manner without sounding invasive. We hope this video will help you to take steps
to apply AI in your business and career. Let us know your thoughts in the
comments below, and don’t forget to subscribe for more
videos on AI for marketing and growth. See you next time!

IoT in Action: Discover new business opportunities with IoT


[MUSIC].>>We’re here IoT in
Action Santa Clara and I’m here with Rishabh
from Quests Global. Tell me a little bit
about how it feels to be IoT in Action and what it means for your team to be able to be here interacting with customers
and industry experts.>>So it’s a pleasure to
be here at IoT in Action. It’s great to be amidst this energy and all the
insightful conversations. We like to leverage this platform
to showcase the capabilities of our solution and how it’s applicable to all
different industries. It’s also very helpful
to understand what the requirements of the industry
as well as the customers is, and how we can cater to those needs.>>Tell us a little bit about what Quest is showing here within
the Expo IoT in Action? How the solution works? What problems does it solve
and plans for deployment?>>So we’re actually showcasing our AI-driven vision
analytics platform, which is called Third Eye. So basically, it takes
the camera feed and then sends it to an AI algorithms, where the inference takes place.>>Okay.>>Then we draw insights from that to give the businesses an
opportunity to create actions, that then reduce their costs
and increase their ROI’s.>>Tell us a little bit about how
Quest is approaching that and why building on the Azure platform really helps you bring
value to customers?>>Yeah. That’s a great question. We actually partnering
with Microsoft, and using Azure platform really
helps us ensure that security is there in the solution from
the ground up all the way from the Edge to
the to the Cloud, and also ensure and empower our solution with features like
high availability and consistency. So just having these major blocks of security communication
protocols in place, it’s easier to focus on the use cases rather than the
architectural competence.>>Can you give us your feedback
and your thoughts on why is it so important to intertwine security
when developing IoT solutions, nowadays, and going forward?>>So I think it’s one of the most fundamental things in any
IoT solution which is security, because there’s a lot of
sensitive data that is being transmitted from
one level to the other. So on an enterprise level, you want to make sure that these enterprises trust
you when they’re working with you and they
feel safe giving you access or creating a
solution around their data. You want to make sure that
you meet a certain level of service level agreement and also ensure that security
is delivered to them.>>What is Quest Global’s
vision for IOT and how are you leveraging that vision
to optimize efficiencies, improve customer experiences, and really just open up new
business opportunities?>>So Quests Global is basically
an engineering services company, which is focused on creating
solutions specific to industries.>>Okay.>>So we help enterprises adopt digital technologies using
Azure services and others. So it’s basically helpful for enterprises to
leverage Azure services, and actually take their
solutions faster to the market.>>Can you tell me
a little bit about, are there any particular
products or services on the Azure platform that
has really helped Quest streamline their deployment
or that you feel is going to really change
the landscape of the Intelligent Edge,
Intelligence Cloud Ecosystem?>>So we’re doing a
lot of work with a lot of different services
given by Microsoft, specifically to the Azure platform, significantly using IoT Hub.>>Okay.>>Then we’re using the SaaS
offering which is IoT Central.>>Right.>>As well as the IoT Edge which falls under the IoT
Edge Hub umbrella. One of the major factors that helps us push our solutions faster is the security component and different security services
such as Azure Active Directory.>>Can you tell me a little bit
about how you see IoT evolving in the next 3-5 years and how you
see your solution here today, or plus Global’s impact and IoT
really driving that growth?>>So we see the industry and IoT primarily moving
towards the edge.>>Right.>>The Intelligence moving
more on the Edge side. So that is, we see the
industry moving and we’d like to focus on catering to
those needs that are coming up.>>If there was an opportunity to reach out and connect
with all the customers watching this video on
why they should work with Quest and why they should leverage your solution,
what would that be?>>So you should leverage our
services as we have expertise in helping enterprises take their
digital technology adoption, and also reduce their time to market. [MUSIC]