Employee Retention Speaker – Cara Silletto

We’re all pretty familiar with the buyer and seller market in real estate where the advantage switches back and forth from buyers to sellers based on the economic factors at hand. But did you ever realize that the same exact philosophy is true with the employment market? During the recession, we were in an employer’s market- where it was pretty easy to get and keep the talent that we needed. But we have now transitioned over into an employee’s market- where employees and candidates have the upper hand today. They have an advantage because everyone is hiring. So I want to talk with you today about our workforce, in particular, this Millennial mindset that we’re seeing come into the workplace. Now, a lot of people know the general demographics here: that we had 80 million Baby Boomers in the workplace. Now this number is shrinking from a workforce standpoint because 10,000 baby boomers are retiring every single day. What a lot of people don’t realize is that Gen X, the group right behind them, was about half their size. Now what that means is that when the Gen Xers came into the work world 15, 20 years ago, they came in with new ideas and wanting to do things differently. But their Baby Boomer supervisors and bosses would not let them. They did not want to wear pantyhose. I promise you. But their bosses said they had to. So, what most Gen Xers tell me is that they learned pretty early in their career that if they wanted to advance and wanted to be successful, they were going to have to play the Boomer game. So they adopted this Boomer mentality of how we manage people and lead people and how we schedule and what professionalism looks like. All these types of things. They became what I lovingly call Pseudo Boomers. Because they took on those same definitions. Now here is the game changer: We have 80 million Millennials. And you haven’t even met us all yet in the workforce because we go all the way down to age 16. This is the same exact group as Gen Y, if you look at the at the demographics and things. It just depends on the research. In fact, I don’t care what year you were born- different researchers say different things. What I care more about is: what is your mindset? How were you raised differently than other people and in what times were you raised that make you who you are today? So I’m going to share with you this Millennial mindset today. And remember, it doesn’t have to be somebody who is between ages 16 and 36. This is anybody who has this type of mindset. You may also have some Millennials in your workforce that are in their 20s, and you love these old soul Millennials- you know these. They show up. They show up on time. They do what you tell them. And they certainly don’t wear leggings to work, do they? No. So, we’re going to talk about this more broad, Millennial mindset of a lot more of those young workers (not the old souls). The people who were raised like I was. So, these are the issues on the table. What we’re going to address is: Technology, Authority, Balance, Loyalty, and Entitlement. The first one here is Technology. Now, think about when you were a really young kid and how you’d listen to your favorite song over and over and over again. most Baby Boomers started with record players. And they had those record players through their childhood and through high school into their early adulthood. Some of you Boomers probably still have your records. I’m certain of it. Now, if we look at a Millennial’s perspective, on the other end of the spectrum here, by the time I was born in 1981 I started with cassettes. Then I quickly moved to CDs, then I was asking for an iPod for my birthday. And we were the first college group to start illegally downloading music on Napster. Okay, so that meant that our formative years, what happened in those first 20 years of my life, was very different as far as my relationship with technology than any Boomers experience. So that relationship with technology has now transformed itself in our workplace as our comfort level with change. So, no wonder you have some Millennials in your workplace that are saying, “Oh, well this is too slow, and that needs to be automated, and don’t you know there’s an app for that now”? Versus the other end of the spectrum that says “if it ain’t broke don’t fix it. I’ve been doing it just fine the way I’ve been doing it for the last 10 or 15 years. Don’t you come in here, you little whippersnapper, and tell me how to do my job or run my department. Okay?”. We’re seeing both sides of this and I can understand where they’re coming from. In fact, on all of these different spectrums, there is no right or wrong. There’s no right or wrong, but as leaders you cannot be extreme. You can’t be on one end or the other. We’ve got to find middle ground as managers and leaders to lead our organization forward, so you’ve got to look for that appropriate pace for change. Then we have Authority. Now, my mom was raised completely differently than me. She was told at the dinner table, “You don’t have an opinion unless I give it to you, young lady”. So when she had two little girls, man, she swung that parenting pendulum so far the other direction and made sure that we had a voice. “What do you want for dinner tonight, Cara?” “Where do you want to go on vacation this year, Cara?” Now, my family was so equal in our vote that every four years my mom, my dad, my sister, and me would rotate who got to pick the family vacation spot. When I was 10 years old it was my choice, and I wanted to go to Boston. So bad, okay? 1991, 10-year-old girl, why does she want to go to Boston? Because that’s where The New Kids on the Block lived. Right? Duh! So, we got on a plane and we flew to Boston to go try to find Joey McIntyre’s house. All right? I was in love with him. So, you can imagine then in the workplace why we again have this widening spectrum where we have a lot of folks who respect this chain of command and expect others to respect that as well. Then you’ve got kids like me coming in that say, “Whoa, whoa. No. We’re all equal here. This is more egalitarian (is what we call it) and we believe that everyone is needed, everyone is valuable, and we should all be appreciated for that value. Whether I’m Clinical, Admissions, Housekeeping, Environmental Services, Dietary, it doesn’t matter. We all have to do our jobs to make sure this building runs well and that our seniors are well cared for”. So, very different. Another difference that we see today is this work-life balance. Now, I’m guessing for most of you in the room, when you started your career you didn’t have a cell phone in your pocket. Did you? No. Things have changed dramatically over the years. Not only with that, but we also have so many single parents in our workforce today. We have so many people who are carrying a second job in our workforce today. So, we have got to understand their reality, and their priorities- personal and professional. Because I’ll tell you it is next to impossible, with cell phones today, for us to separate the personal from professional sides of our lives. Another thing that’s difficult for us to understand is this innate sense of loyalty for loyalty sake. Most Millennials don’t know what loyalty looks like. We’ve never seen it. Divorce peaked in the 1980s. Most of us saw our parents or our best friend’s parents split during those formative years. Then came the 90s and early 2000’s when the internet caused globalization for most of corporate America. they started offshoring and outsourcing and downsizing. My mom is a corporate accountant who always got stellar performance reviews. She got laid off three times before I hit college. My parents split when I was 11. I remember the day when my 15 year old mom. I’m sorry. I remember the day when I was 15 and my single mom came walking through the front door, with tears in her eyes, having been blindsided by another layoff, looking for my shoulder to cry on. That gives you a whole different perspective on company loyalty. She said, “Don’t ever depend on a spouse or a company for your livelihood. You have got to be able to stand on your own two feet”. And then we also saw examples of loyalty where our parents stuck it out and sometimes they got that raw end of the deal, but sometimes they would stay they would stay working for a boss they didn’t like, a company they didn’t like, or they’d stay married to somebody they didn’t like, and when they finally got out of those miserable situations after 10, 15, 20 plus years, you know what they said to their kids? “Don’t do it” “Don’t do what I did because life is too short, and you should not be unhappy for too long”. We then translated that teaching over to what we call YOLO. All right. By the way, this is not cool anymore. Once our parents figured out what it stood for, we stopped using it. Okay, kind of like Facebook. YOLO. YOLO stands for: You Only Live Once. You only live once. And even though it’s not a cool hashtag anymore, it’s still very relevant in our workplace today. This is the number one reason for turnover. I don’t like my supervisor. I’m out. I don’t like my schedule. I’m out. I didn’t like the way you just talked to me. I’m out. They can leave because everybody else is hiring. Really important for us to understand what’s going on in their heads today. And then my favorite: Entitlement. Anybody have a few entitled little whippersnappers running around your building? I figured you did. So here’s the explanation: Credit cards. Personal credit cards became mainstream for middle-class families to use in the 1980s * ding ding ding* so that meant for the first time these parents didn’t have to have the cash in their pocket to spoil their kids and to get us everything we asked for. Then came ‘keeping up with the Joneses’. If you think about the holidays, your holidays, before 1980- It’s a whole different world. It was about family, food, fellowship- the reason you were gathering around that table – and today It’s about stuff and all the logistics around house hopping and the schedule and the financial obligations. So who’s the beneficiary of that explosion in the commercialization of our society? The Millennials. We have gotten almost everything we ever asked for, so it’s no wonder that we come into the workplace with a heightened sense of entitlement. It’s no wonder. We come in with a lack of deep-rooted loyalty for loyalty sake, or that we have trouble separating our personal from professional lives. Every generation is merely a product of the way they were raised. Every generation. So, what is it that a lot of the Millenials are looking for today in a in an employer? Well, they want to be heard. They want to have a voice. They want recognition and appreciation for a job well done. I did not say for going the extra mile, or going above and beyond. “I showed up all five shifts this week You better pat me on the back”. Now I know that seems ridiculous and some of you are thinking, “That’s why they get a paycheck”. But, the reality is all those silly participation ribbons are coming back to haunt the employers today. Because I showed up. I played the game and I got recognition for being on the team. This doesn’t cost us anything; just a couple minutes. Just a couple seconds really to say “Thank you” It’s time for every leader and every manager to turn up the dial on their recognition meter and start thanking people when they show up. Thank them if they show up on time. Thank them when they do a good job. Even if it is their job because when I talk to other administrators, Directors of Nursing, and others in this field, they tell me there’s a lot of people who don’t show up and don’t do their job. So let’s just recognize the people that we truly are grateful who are there and who are taking great care of our residents. They also want opportunities for advancement. Any position where people are leaving because they feel stuck or they feel like there’s no room to grow here, You can level out that position. What I mean is figure out what the competencies are in that role such, as a CNA. You know that a CNA with 6 years of experience is far better than a CNA with 6 months of experience. What’s the difference? Define out what those competencies are and then create chances for them to level up: I’m a level 1, level 2, level 3, level 4 CNA… Give me those opportunities to move up in the chain so that you never have anybody leave because there’s no opportunities for advancement here. Then we want flexibility. We are all looking for a greater quality of life and that better balance, so please give people more choices on their scheduling. We’ve got to give that power and that say over to the employees where they get to select their schedules. Do you have 4 hour, 6 hour, 8 hour, 10, 12 hour shift options? Some of you might think that’s a nightmare- get scheduling software. It will manage a lot of the priorities and preferences that your workforce has that is going to be needed to keep them. Then we’re all looking for a coach. Not a boss. Nobody wants to work for a boss anymore. We want coaches who help us do things better. So if there’s one thing I could tell you that is the silver bullet on reducing employee turnover, it is: make sure your supervisors and managers have the tools and training they need to be successful. We have cut training and development over the years, and we’ve got to bring it back to make sure that those frontline supervisors and managers at all levels in our organization can absolutely have those important conversations and coach their people to be better. Oh, but wait a minute. Newsflash! Guess what everybody in the workplace wants? This is not rocket science. Everybody in your workplace wants it to be this way. So, what is the real impact that the Millennials are having? This huge cohort that really is shifting the way that we are going to do business over the next 5, 10, to 50 years? The real impact is that we are helping leaders find new ways to create a place where people want to work. Where everyone wants to work. This isn’t about Millennials. It’s about creating a place where people want to work. So, do me a favor: get to know this new workforce. Don’t assume, don’t judge. Get to know them because getting to know them on an individual basis is going to help you build the trust and loyalty to extend their tenure so that we can get the staffing stability we so dearly need to provide the greatest quality of care. Thank you.

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Best Practices in Developing G Suite Business Apps (Cloud Next ’19)

In this session, we are going to talk about
developing applications on G Suite, and some of dos
and don’ts of developing applications and how to set
up organizations in this particular session. So my name is Satheesh. I am your host for
the session today. Along with me, my co-presenters
are Monica from Genentech, and we are going to have
Sambit from Google Cloud talk in this session as well. So we will start with
giving an overview of what kind of challenges
our enterprise customers face when it comes to developing
applications on G Suite, and how we are driving certain
industry trends with some of our product lines,
followed by talking about our specific products. And then we’ll have Monica
present how they’re organized, and what are some of the best
practices in their organization with respect to app
development on G Suite. Then we’ll talk about, what
is the future looking like, what are the key trends that we
are seeing in the industry when it comes to developing apps
in the productivity space generally, and within G Suite
as well more specifically. And then we’ll wrap
up this session with an overview of some
of the exciting features that we are announcing today
with respect to G Suite development platforms. So before we get
started, a quick note on how to submit questions. So all of you must
have the mobile app. So you will be able
to submit questions through your mobile
app on this Dory. So you can go to this
particular session details, and then submit
[INAUDIBLE] there. Towards the end, we will try
to address your questions. We’ll also be able
to– hopefully we’ll have time to take some
live questions from this room as well. Sounds good? Perfect. So, without further
delay, let’s get started. So imagine yourself to
be a salesperson, an HR professional,
financial analyst– many different roles
in an enterprise. Your key responsibility
is in driving the business with
respect to your role, with respect to your
area of expertise. When you do this,
you’re obviously using many different
applications. You’re using G Suite, plus
you’re using other enterprise applications as part of this. That means you need some
customizations in order to run your business process. You need all those apps. When it comes to
getting those apps, there are some key
challenges that the business users in an organization face. Number one challenge is
what we call the skills gap. As the business
process owner, you are the expert in
your business process. You know how your
process should run. You know how your
business is run. You know your role
better than anybody else in your organization. When you want to
get those apps, you need to go to your IT
developers, and talk to them, and educate them about
the business process. And then they have the
technical expertise to develop those applications. Do you see the problem there? So on one hand,
the business users are really proficient
with their processes. They have the right
skills for that, but they lack the
technical expertise. On the other hand, the
technical developers have the right
technical knowledge, but they don’t know all
the business processes. This is what we refer
to as a skills gap. This requires communication
back and forth in order to get the right
application that you need. This is the number
one challenge. The second challenge
is, the IT developers, now they have to work with
many different business users in the organization,
across the enterprise, understand those
business processes, and then develop the
applications for them. That leads to scaling challenges
for the IT developers. The resources become
limited as a result of that. Any organization, this
is a very common problem. The third challenge
that we see is that technology keeps evolving. Business processes
also keep evolving. And as a result of that,
it’s hard to keep pace with those changes. Everybody’s always
playing catch-up in order to stay in tune
with these changes that are happening. That leads to delays in
getting the apps that you need. That leads to getting
the updates to the apps that you’re using. That’s the number
three challenge. The net result of all
of these challenges is that the involved
stakeholders get frustrated. There are many
different stakeholders. I have identified three
stakeholders here. Number one is the business user
who needs these applications. Number two is IT developer,
the technically proficient developers. Our number three
is somebody who is tracking the cost,
and the schedules, and managing all these
programs and costs, what I call the IT director here. The business users are
frustrated because they are not able to get the
right apps that they need on time or the updates
that they need on time. The IT developers are frustrated
because their project backlog just keeps growing
as they try to work with many different
organizations in enterprise. The net result of
the IT director is that now they
are facing the cost and the scheduled [INAUDIBLE]. Those are the challenges
that everybody faces– all the stakeholders face. How are enterprises
addressing this? What are the shifts that are
happening in the industry to address this? So number one shift
that is happening is that the application
development itself is being moved to
the business users– closer to the
business users– where they have the right expertise
on the business process and they are in
the best position to find out what
is the application that they need, and
better still, actually develop these applications. This is happening on no-code
tools for the business users to develop those applications. The second shift that is
happening in this industry is that there are lot
of SaaS applications that are coming up– Software as a
Service applications. When there is a
need, it’s probably most efficient to go
and buy an application, as long as there is one
that meets the need. That has led to the growth of
the enterprise marketplaces and the growth of
the ecosystems, where ISVs and third-party
developers develop these apps and make them available to
the different businesses. The third shift is
within the enterprise IT. IT’s role itself is evolving. It’s evolving from one of being
an app developer and an app development
organization to being an enabler for development of
applications, by the businesses and by the business users. The business users in
this slide are also called the knowledge workers. So the knowledge workers
are now developing the apps, and the IT organizations are
became becoming the enablers. They’re providing
the right tools, they are providing
the right data access. They’re providing the right
guardrails– security, et cetera– to make sure
that those applications meet the organization’s needs and
comply with the organization’s policies. In Google and in G Suite,
we are at the forefront of driving these shifts. Number one, with respect
to the first shift, we are providing the
low-code and no-code tools to enable the business users
to develop these applications. Number two, we are
building this ecosystem and we are building
this marketplace where business users in
an organization can go and find
applications that they need and start deploying and
using those applications. With respect to
the third shift, we are also providing the
right tools and technologies that data administrators
need in order to ensure that all these
apps that are being built by the knowledge workers
across an organization remain secure, the enterprise’s
data remains secure, and that the IT administrators
can go on and monitor the application usage and
make sure that they’re able to whitelist the apps
that they allow the enterprise users and the business users
to install and use that. That’s how we are driving these
shifts in the G Suite Developer platform. Getting into the
specifics, I want to talk about the five products
in G Suite Developer platform, give an overview, so
that you can go out and explore further
details on this. So the number one developer tool
that we provide is Apps Script. Apps Script is a
low-code platform. How many of you here
have already heard about Apps Script. That kind of shows how
popular Apps Script is. You can actually
see that there are over three billion weekly
executions on Apps Script. So it’s a low-code
developer platform, and it enables the business
users to quickly build apps. How so? Because it provides
an integrated document environment. It provides APIs for
all the G Suite apps. It also provides security,
in terms of OAuth, et cetera. And it provides an integrated
runtime environment, so that when you’re
building the app, you don’t have to look
elsewhere to think about where you’re going to run that app. So it has that integrated
runtime serverless environment that you can use to go ahead
and run the application. From a best practices
perspective, if you have an
application that is going to be used by, let’s
say, a few hundred users, Apps Script provides the
perfect platform to get started. Apps Script still
requires some coding and some proficiency in coding. This is for what we call
the advanced knowledge workers, or citizen developers. Let’s say you build an
app and it becomes very popular in your organization. Now it needs to be used by,
let’s say, a few thousand users as opposed to a
few hundred users. That’s the time when,
as a business user, you talk to the IT
organization and IT developers, figure out how to
scale up application. And also, potentially, you need
new features– maybe some email or AI capabilities, maybe some
data analytics capabilities. That’s when you can use
Google Cloud Platform, and scale that application,
and build the new features. The second tool that I want
to talk about is App Maker. App Maker is intended to
be a no-code platform, a no-code application
development tool. This is for pure business users,
knowledge workers who cannot code. At this point in
time, App Maker is great for building simple cloud
applications with the data that you are already using
for your business users. If you want something that
is a bit more advanced– if you want more
advanced customization– you can use Apps Script
to customize your app that is built using Apps Maker. So from a best
practices perspective, if you are a business user, you
will start building the app– as long as it’s a simple
cloud application, you should be able
to build with all the visual drag-and-drop tools,
as is illustrated on the slide here. If you want more
customizations, you would go to the IT
department and try to seek some of
their help in order to customize the application. The third tool that
I’m going to talk about is the G Suite Add-Ons. I literally know of
nobody who is just using one or two applications
in their business, right? They’re always using a
suite of applications. For example, if
you’re a salesperson, you’re using G Suite, Gmail,
Events, Calendar, et cetera. But chances are very
high that you are also using a Salesforce or a dynamic
CRM along with this G Suite. So Add-Ons provides the right
tools and the framework for you to get an integrated experience
with third-party apps. That’s what Add-Ons
is intended to do. It provides an
integrated experience. It also provides a
development environment in order to build those
Add-Ons so that they we use multiple applications along
with G Suite, in conjunction with G Suite, in an
integrated experience. So from a best
practices perspective, you’d look for these add-ons– to start with, on the G
Suite marketplace, where the chances are that you’ll
be able to find the right add-on that you need. Otherwise, this is not a
development tool intended for the knowledge workers. Rather it is a framework
intended for use by the knowledge workers. So from a development point
of view, you have to go to IT and ask them to
develop an add-on and make it available
to you, and potentially many of your colleagues
in the organization. The next one is the
G Suite Marketplace. There are over 6,000
ISV applications– both web applications,
productivity tools, add-ons, that are available on
G Suite Marketplace. So if you’re looking to
solve a particular problem, this is probably the
best place to start with. Look to see whether
there is already an application that’s available,
and use that application. And if not, then
you’ll have to look at how to build something in
collaboration with your IT. So if you are in
the IT organization, from a best practice
perspective, you should talk to
them about the app that you need so that, in IT,
you can actually make sure that the application
that you want to make available to the rest
of your organization is secure, it meets all your needs. And then that application can
be whitelisted, and make sure that all the other business
users can use that. The last tool that
I’m led to talk about is the Admin Console. So the Admin Console provides
a number of different tools and techniques to make sure that
the apps in your organization remains secure and the
data in your organization remains secure. With the shifts that
we talked about, now a lot of different
knowledge workers will be building
applications through their entire organization. The role of the IT
now is to become an enabler, a facilitator
for this kind of application development. As a result of that,
it’s very important that IT’s role is to keep the
security of the applications and the security of
the data, and make sure that these apps and data meet
the compliance requirements of the organization. In order to do this,
we are providing a number of different tools,
including whitelisting of the applications. Only the whitelisted
applications can be installed by the
users in your organization. Providing data access
controls via whitelisting APIs and enabling APIs, providing
some data guardrails, as well as monitoring
the app usage and ensuring that the resources
that are allocated from the app are maintained. So those are some
of the ways how we are enabling
the IT to go and be an enabler in your
organization in turn, for knowledge worker
apps to be built. This is an important area
of investment for us. We know that there is a lot
more work to be done here, and we are working on
bringing more capabilities to ensure that, as
IT organizations, you can empower your
business users to build apps and maintain the
security of those apps. So, so far, I gave
you an overview of the different
discrete developer tools and an overview of
what are the industry shifts. I want to take a moment to
summarize some of the best practices that we have learned
from many of the customers that we have spoken to. These best practices, I have
divided them by two personas. One is a knowledge worker, and
the other is IT administrator. So if you’re a
knowledge worker and you are looking to build
an app, your first step should be to identify
what kind of experience your app needs to deliver. Is it a web app that users
are going to access via URL? Is it an add-on that will
be available along with G Suite in the side panel? Or is it an automation–
automation meaning and event-drive app
that automatically does some task for
you in response to some kind of a system event? That would be the first step. The second step is to
lay out the resources that your application needs. These resources could
be, for example, certain compute resources or
certain storage resources. Or maybe you want some
access to resources such as ML models, et cetera. Depending on the
resources that you need, you can think about
what kind of platform that you want to build
your application on. The third is the data
sources and the retrieval. The data sources could
be– for instance, it could be some on-prem system
that you’re already using. If you are in IT, you
have to think about, how will I make this data
available to the knowledge workers so that they
can build our apps? The data sources could also
be some other third-party SaaS services that you
are looking at. And maybe what you want to
access is just a few data items, potentially using APIs. In some cases, you may
want a large amount of data that needs
to be analyzed by the application itself
using some kind of pretty analytics tools. So the fourth step is,
using all of these data from the first three
steps to make sure that you’re choosing the
appropriate G Suite developer tool. If you’re looking to
build a simple application with no code, you will
probably start using App Maker. If you want some customizations
that are a bit more advanced, than you would start
looking at Apps Script, and start using that particular
tool for building your app. If you are looking for much
more advanced data analytics– crunching a large amount
of data, using some email, or if you are looking for
advanced storage such as Cloud SQL, then you would be thinking
about building your app on GCP, the Google Cloud Platform. Those are the kind of things
that you should look at. So now, once you
build this app, you should also think
about how to share this app with the other
users in the organization. This could be, for
example, even IT, providing some amount
of pre-built code for the other knowledge
workers to develop apps on. Or it could be IT enabling
all the enterprise users to use this app via a private
listing on the enterprise marketplace– on the
G Suite marketplace. Or if you’re even looking– if you are a third-party
developer or an ISV, you can use the G
Suite Marketplace as your distribution
platform so that you can reach many different
enterprise customers and have them use
your application. Now, looking at it from an IT
administrator’s perspective, the best practices
are– number one is, make sure that your
business users, the knowledge workers in your
organization, are empowered and they’re aware of the tools. Make the right tools available. For example, you
may want to make App Maker available
for all your business users in the organization–
enable it for them. Or you may want to build some
community around the knowledge workers so that they can
collaborate with each other, share information
with each other, and build the
application on their own. This is important for
you as an IT organization because that reduces
the load on your– and the stress on
your organization, by moving the applications
closer to the business users. The second best practice
is to establish data access and connectivity. If you want your
knowledge workers to be able to build apps
around on-prem data, make sure that
data is available. And the third best
practices is to enforce security and governance. Now when you’re looking
at enabling your business users to install applications
from the marketplace, make sure that they’re secure. If you are enabling
your knowledge workers to build those
applications, then make sure that
those apps are also secured before they are widely
used in your organization. Or you may want to establish
some data guardrails or some quartiles in
the compute to make sure that those apps comply
with those limitations that you enforce. So those are some of the best
practices that we have learned from many different customers. So at this point, I would
like to invite Monica onstage to talk about application
development, and Genentech, and how they’re organized. MONICA KUMAR: Thanks, Satheesh. Hi, everyone, welcome
to the session, and it’s great to be here. Thanks to Sambit and Satheesh
for inviting us here. I have a couple of my colleagues
from Roche and Genentech. So– glad we could
get a team together. So I want to start off with
talking about who we are. So maybe some of the US-based
folks may know Genentech, but Roche is basically a global
pharma company based in Basel, Switzerland, with around– you can see we have
over 100 locations worldwide, with around
95,000 employees. And Genentech, which is a
US-based biotech company, was acquired by Roche in 2009. And ever since, we have been
a member of the Roche group. Another fun fact–
I mean, it’s really a huge number– the 11 billion
Swiss francs in R&D investment. So we basically are focused
on four therapeutic areas– oncology, immunology,
neuroscience, and infectious diseases. And really, we have both
the diagnostics and pharma divisions under one roof. And this gives us the
unique opportunity to actually look at
the patient health care across the whole
spectrum, so right from prevention, diagnosis,
treatment, and then monitoring. And our mission
is really to find those unique and best solutions
to improve our patients’ lives. To really support our business
and to fulfill the mission to have the best solutions
for our patients, we are looking at,
from an IT perspective, how can we actually
simplify the landscape, empower teams with
the right tools, and also support these
new ways of working. Our business is going through
a major transformation today. And what you see on
the left hand side– and just to give
you a background, Roche migrated to
G Suite in 2013. And prior to that, because the
company had been in business for more than 20, 30
years, as some of you know, you tend to build
up on legacy applications, legacy platforms. And lots of custom solutions on
those platforms had been built. So we had sort of a messy
application landscape. And we also have– ever since we’ve
moved to the cloud, we also got these
third-party apps that were sort of
confusing our end users– when do I use this versus that? Microsoft was embedded
in the organization before we moved to G Suite. So a lot of the
questions is, when do I use SharePoint versus
Team Drive or Sites? And so our leadership looked
at this last year, and we said, there is a certain power
in offering our end users a default. And that
default is actually G Suite. So we believe G Suite offers
the right capabilities to make our end users as
productive as possible. But along with G Suite– So the G Suite ++, is really
about these third-party apps that we have also. So we use Smartsheet,
Box, Trello. All of these apps actually
add to that experience, they enhance, and
they meet the gaps that we have just in the
basic Collaboration Suite. So how are we organized to
support this very large, very complex organization? We have a global
IT team oversees that looks at where
is the business going, and what are the enterprise
solutions we need to provide our customers so that they
are not waiting for this and having to do all
this work on themselves. So for example, we are focused
on personalized health care, in the Roche science
infrastructure, ERP, and many cloud capabilities,
even around automation. So that’s something
that global IT provides, those platforms and tools. The functional IT is basically
embedded in the business. They actually have
the closest proximity to what’s going on in
each business division. So for example, our
business functions can be from research,
manufacturing, diagnostics, commercial. So each of these businesses have
their own individual demands, and they have their own
business-critical applications that they work with. And that team actually
sits, and delivers, and drive that global
IT strategy forward. And then, of course,
we wouldn’t be here and be able to do what
we do without hundreds of these knowledge workers
who are both developing, but they’re also
consuming these services. But they are the ones
that are actually building these solutions,
using some of the development platforms we have. And we have a wide spectrum. Given the application
landscape that we have and the complexity of
the business demand, too, we have every– low-code, to medium, to the very
complex apps, a wide spectrum there. And so in the low-code,
we have seen a lot of– because we’ve been on
G Suite for a while. We’ve seen lots and lots
of knowledge workers build app scripts for many,
many different solutions that they want. So for example, Apps Script
comes embedded within G Suite. It gives you the ability to
connect with the G Suite API. So anyone who has
curiosity to solve a problem within their
own group can just pick it up and get started. It offers the integrated
serverless runtime, and it’s no additional cost. So I think this is
something that we have seen grown very organically. We didn’t have to do a whole
lot to support the organization. This is something
people just ran with. In the medium complexity,
we have Apps Script or other web apps
that have evolved to a higher complexity,
where we are seeing the use of GCP and APIs. In fact, we
ourselves, in IT, have built lots of global solutions,
including our employee directory, which
is called Peeps. We have built that
on GCP, leveraging our identity management
systems, HR systems, bringing together the
data so that that Peeps app can be available
both on Chrome as well as on a mobile device. But I think in the last sort
year and a half, two years, we’ve seen a demand for more
intelligent, contextual apps that will reduce the friction
or the barrier of entry to use them. And these apps could be using
some of the cloud technologies like the natural language
processing, machine learning, and AI. We are actually signed
up with Dialogflow, which is part of the
Cloud AI stack on GCP. And we have about 70 digital
assistants and chatbots, either in a PoC or development stage. So there’s huge
interest and a demand from the business in this area. And again, we are
integrating with some of our big third-party systems,
like ServiceNow, Workday, and SAP as well. So today, I actually want to
talk about two use cases, both built with Apps Scripts. And both of these
actually come from our pharma technical business
operations team, which is basically manufacturing. So this team actually has two
manufacturing pilot plants here in South San Francisco. And they really
wanted to have a tool that enabled to do some
sort of workforce planning– so for both technicians
to be able to plan, like, the next weeks and what’s in
the pipeline, and for management to have oversight over
the activities happening in these plants. And so they looked
at– obviously, there are third-party
tools available. There’s a cost associated
with that as well. But given that our
Genentech processes are so customized to the molecules
and the experiments that are being run
in these plants. Just to buy an off-the-shelf
product wouldn’t work. And they could also
have gone to IT. But IT also adds to the
overhead in the sense they need to explain– firstly, get the resource,
explain all their business processes, the roles. And it takes time to
actually deliver it to the pilot plant workers. And so Scott Linnell, who’s
here with us today, the author and the person responsible
for this app script, actually is very much
like some of the knowledge workers in our organization. He saw this problem. And he’s not a
computer science major. He comes from the life
sciences background. He was an intern at
Genentech in 2017, and just dabbled in Apps Script. And along with another
intern, and then later on, as a full-time employee, took
this on and built the app script to address this need. And I think it’s a great
example of what’s possible. You don’t need to wait to
solve a business problem just because you don’t
have IT resources. And again, there’s another
example from the same team, but for a different use case. So there are these
different equipments. There are five different labs
within our manufacturing team. And they have different
equipment based on the roles that the people have. And earlier, it used to be a
very tedious manual process. People would go to the
equipment, sign up on a sheet, like, hey, I want to use
the equipment from 10 to 11 tomorrow– really manual process. And they actually–
this equipment can’t be booked by just anyone. So they’re booked by the role
that you have on the team. And so again, Apps
Script came super handy. Because they could
actually not only see the availability of the
equipment, book the equipment, it’ll show up on
their calendar, there would be an email
sent to remind them, hey, your equipment
is due for return now, and they could also say the
equipment is broken– they’ve used it and it’s not working. They could just schedule
a maintenance right there, through this tool. They have colleagues now,
in Germany, the same team. And they said, we would
like to use this tool, too. And so they’ve localized
that same app script and used it for their German
colleagues and counterparts. Again, a great example
of how empowering your organization and your
knowledge workers to use what’s at their fingertips today. And we’re really proud of
the work that Scott is doing. He even, in fact, ran Apps
Script training for his team there, to help them build more. I want to leave you with
some best practices. Obviously, we’re
not a small company. So some of our best practices
are really centered around how we can scale and support
a very large organization. And the first one is
the enterprise strategy. And this is not just
about seeing technology for technology’s sake. It’s about how can we deliver
platforms and services that actually meet our
business demand. So we look at a
two- to three-year and see how are we positioning
ourselves with the cloud capabilities, with
infrastructure services, application
development services, to enable and
drive that forward? Because the business is
relying on us to do that. And the second thing we
actually really value a lot is this customer experience. So when we think of IT
services, most people just don’t like going to IT. It takes long. You have to open 10 tickets. You have to go here, go there. We try to bundle these services. So we look at what does
an application developer need when they come to us? What does a DevOps person need? What do these
researchers need when they want to quickly
spin up applications? And so we look at how people
are consuming our service, what are they telling about it,
what is their feedback, where can we do better, and
continuously have this cycle with them to improve it. And then the third thing
that we have to drive is the compliance within
all the products, platforms, and services we provide. And this is a proactive, close
collaboration with security, with legal, with
COREMAP, to make sure that anything we
recommend and anything we say, this is
supported by IT, it’s actually complying with Roche
data and privacy standards. So essentially we
are making sure that the heavy lifting
is already done, so that when end users go into
the application landscape, they can actually pick a product
knowing that IT has vetted it, it’s safe to use. The second piece is around
empowering the organization. And this, the first part,
business partnership is essential for us because of
how diverse and geographically dispersed we are. It’s very important to have– we call them IT
business partners. They’re basically
embedded in the business, but they understand
the IT landscape. They can connect the
dots for the business. They can point them
to the right people. They can point them, hey,
you don’t need to build this; there’s already a solution
available for this. So there is this
cross-sharing of ideas, but also solutions
on how business can solve their problem. We also make a very
concerted effort to make sure that
anything that we introduce into the organization,
there’s full transparency on the roadmap, so there
is nothing unexpected or a surprise. So we make sure that we
have our sounding boards, with our stakeholders
and customers internally. We also have user adoption
services regionally, spread across, who are
actually our channels. And they are
communicating new changes that are coming in our
pipeline to all of the users. We also run a lot of pilots. So we’re very– because we want
the organization to be prepared for change, we make
sure that, for example, whether it’s Team Drive,
or it was Hangouts Meet, or they’re a new
docs API, things like that, that are coming. If we open this, run
pilots in our test domain, give early access to developers
so that they are prepared for changes that they need
to make in their applications or in the way they work. And this actually gives us the
early access to their feedback. And we’ve been actually lucky
to have really great partnership with Google to funnel that
feedback back into the product teams so that this feedback
goes there early and often, and they actually know
what doesn’t work for us and what works for us. And the last thing
is around learning. So I think this is also
very critical, especially as technology is changing. There are new
emerging technologies coming, where our business and
our IT is actually ramping up. So we run hackathons. In fact, procurement just had a
Procure-a-thon two weeks back. This is really to say,
let’s bring our top two, three business problems here. Let’s get a team of developers,
UX, business analysts, all of us come together,
and let’s try and solve this in maybe one or two days. And this is a great
way to understand that you’re pushing the
limits of the APIs available, you’re pushing the
limits of how can we address this problem, can
we address this problem, are we too early,
should we then request more feature updates
from the product teams and come back to this later? This really gives us this cycle
of understanding and learning to be prepared to
do it in production. Part about learning is
definitely knowledge sharing. Again, we are huge or heavy
users of Google+ communities. I can tell you that a lot
of our Google+ users rely– in fact, I met Scott through
one of these communities. I just posted something on Apps
Script, and Scott responded. So there are lots
and lots of people that are connecting
with each other, sharing learnings, sharing even
their failures, like, hey, this didn’t work for me, has
anyone else tried this? And so these network communities
are ones where a lot of folks rely on them for learning
and understanding what’s going on in
the organization for specific subjects. And then centers of excellence– we have Roche experts
in specific domains. So for example G Suite app
development, API integration, we now have one on
conversational platforms. So what we do is we
look at the emerging technologies and the
business demand and say, hey, we need a set of
experts on these technologies that are ready to
jump into projects and to help the
business when they need. And so they are at hand to
advise and guide our business as need be. So we’re still
learning, obviously. This is not set in stone. We are learning and
adapting, and we are continuing to do this
to fulfill the need that– basically address what
our patients need next. And with that, I want to
hand it off to Sambit. Thank you. [APPLAUSE] SAMBIT SAMAL: All right. Thank you, Monica. What I’m going to
do is I’m going to talk about the future
of app development, some of the key trends that
at least we see and we hope that you see the same way. So a few things– so if you look at any
productivity platform, everybody provides the
standard mechanism, the same way of sending mail,
calendar, chats, writing docs, receipts, and things like that. But fundamentally, we see three
different market trends or tech trends which is going to
impact this productivity space in next five to 10 years. So what are those three? The first thing that we see
is we have, now, capability to understand the user context. What do I mean by that? So everybody has
a mobile device. So at any point in time,
systems know where you are. And depending on where
you are, the experience can be customized. So that is the context– an example of the context. The second thing that the
systems are good at today is capturing the usage pattern. So what I mean by that
is how you do your work, the systems nor how you
are doing that work. So things can be
customized as per that. For example, if you’re
always offlining something, the systems can know. And based on how and
when you are doing it, we can take actions on that. And the third thing
that happens is, when you go to a
new organization, the way to learn about that
particular organization is you go and ask people. The knowledge in
the organization is there in people’s heads. It’s sort of the
tribal knowledge. Wouldn’t it be better for you
to know in a systemic way? There are some people who
have tried this using sort of structured data analysis. But given the fact that
today we have this knowledge scattered across different
chat exchanges, different email exchanges, different docs, a
way to synthesize that knowledge will become important. And that’s what we’re
calling enterprise knowledge. Using these three,
you can potentially categorize the experiences
that are going to come into three broad categories. I’ve called this as
assistive experience, knowledge visibility,
and process automation. Let’s look at each of these. So this will give you an idea
of what I’m talking about. So if you drive any new
car today, what you can see is there is blind spot
detection in most of the cars. What is that doing? It’s helping you drive better. It’s providing an assistive
capability on driving. You can see the same pattern
emerging in software. So if you look at a chat, and
the moment some chat comes in, it suggests to you some
option based on the context. And why does that help you? Especially on a
mobile device, it helps you give a response
which is relevant. So that is assisting
you in responding. You can see that
if you have used Gmail auto-compose– the
same kind of mechanism. The opportunity here is bring
that to the developer platform so that you can use that
or the knowledge workers can use that to build
assistive experiences. The next thing I’m
going to talk about is this whole idea of
enterprise knowledge. Now, with the
structured data, you can go to your analytics
system and know, for example, who the best customer
is, and is he being spoken to by the best
customer service representative in your organization. Who is the expert in
a particular area? But with enterprise knowledge,
it will be possible for you to, without having any
structured analysis, know who is the expert
and who do we reach out to if we need some help, be
it usual things like 401(k) or anything of that sort. So think about it. When an average worker
spends 20% of the time– if you say that instead
of working for five days, you’re walking for
four days, that’s 20%. Or you can use that day
to do your 20% project. Whichever way you look at
it, that’ll help you do that. The third thing I’m going
to talk about is automation. This use case, all
of us go through. We want to have a discussion,
and we want to have a chat. And what happens
is, before we know, five or 10 email
chats gets exchanged before we set up a meeting. The system recognizes that. So let’s do some
time slots by looking at your calendar
and your ability. And you click– just one click–
and the meeting is set up. Not only that, based
on conversation, maybe it can set up
the agenda, figure out which are there the
documents that are important, and attaches that to
the Calendar invite. All those things will be
possible by automating processes and tasks. So that is the third
big trend you will see. Most of the productivity
improvement and the ensuing developer tools will
capture these three trends. Now to the final section. So what’s new in G Suite? I’m going to talk
about three things. So we are launching a
new Add-Ons platform. Add-Ons has been
there for a long time. But we are going to do
a new Add-Ons platform. What that will help you do is,
instead of driving an add-on for each of the G Suite
apps, you write it once, and it works across all
the different G Suite apps. It will have the user
context, and you can have that customized user context. It will make the
development easier, it will make the
management easier. It’s that uniform experience
across G Suite instead of per host app. The second thing that
we are announcing today is Alpha for data connectors. So what this means
is most of you, as you tried to move
your workload to cloud, you have this hybrid
scenario where you wanted the cloud to work
with your on-prem system. So with this Alpha,
what we are doing is we are integrating Sheets
with the on-prem relational Datastore you have on
your on-prem data center. This could be SQL Server,
this could Oracle, this could be MySQL. So you can have all that
data come in to Sheets and be used in
Sheets, and you can have that hybrid experience. The Third thing that I’m going to
talk about an announce today is what we’re calling G Suite
Marketplace Security Assessment Program. The GSM Marketplace, it
has more than 6,000 apps, as was talked about. It becomes very,
very challenging for people to know
which apps to rely on, which apps not rely on, and
it’s a big challenge for admin. We have partnered with some of
the industry-leading security analysts. And the publisher
of these apps, they can go and have their
apps security assessed. And if they pass the test,
we’ll send them a badge. Then that becomes easy
for the administrator to facilitate an
[INAUDIBLE] buying process. So those are the
three announcements. With that, I’ll
end this session. But your feedback
is super important. It’s a gift for us. So please provide the
feedback, and that will help us improve the system. [MUSIC PLAYING]

Enterprise Connect 2018 Keynote with Bob Davis

>>Okay. If you like to take your seats, we’re ready to go with Microsoft. If you were here yesterday and saw the best of Enterprise Connect Awards, you saw that Microsoft teams received that award for the advances that Microsoft has made to this product that they announced a year ago. And I think you’re going to get to see some of what was involved in that, here at our next keynote. And we’re very pleased to welcome Microsoft, of course they’re one of the companies that is correlative to this industry and to what just about everyone here does in your communications and collaboration, and knowledge management. So, without further ado, I want to bring out Bob Davis, Corporate Vice President for Office 365 Engineering at Microsoft.>>All right. Thank you very much, Eric. Hey. Well, hello everybody. Thanks so much for joining us live and online. It’s great to be here in sunny Orlando. I want to thank Eric and his fabulous team for putting on a great conference. I also want to thank all of our customers and partners that are in the audience today. Hey, I was one of a handful of founders of Office 365 and I’ve seen it grow from the very first user, from the very first customer to over 120 million users. It’s been a phenomenal journey and one that would not have been possible without all of the contributions from our customers and partners, who we’ve gotten to work very closely with. I’m thrilled to be here today and that you join me for this discussion. I’d like to start today by bringing up a word that we’ve all been hearing a lot about lately. Intelligent. It seems like every day we’re seeing more and more things and our lives becoming more intelligent. Thermostats, that figure out how to save on our electric bill. Watches, that study our sleep patterns and make helpful recommendations. And yes, even cars that drive themselves. And we’ve seen what happens when things get smart. We save time, we know more, we accomplish more, simply put life gets simpler. I love that on my Surface I don’t have to remember my password, it remembers me. Windows Hello sees my face and it unlocks without a fuss. Cortana, gives me an overview of my day while I’m on my way to work, and Office 365, my analytics gives me interesting stats about how I work. Like how much time I spend in email, how much time I spend in meetings. And like most of you, I spend a lot of time in both. Everything around us is becoming more and more intelligent. I’m here this day to say that it’s time to make the way we communicate and collaborate more intelligent. It’s time for intelligent communications. Intelligent communications is a broad and long-term vision for our industry and Microsoft together with our ecosystem of partners is so excited to lead the way. Our vision for intelligent communication, builds on the amazing work our entire industry has done and continues to do around unified communications. But with intelligent communications, we now forge a new path. A new vision for what we should expect from our communications tools. So, what is intelligent communications? What is it really? Intelligent communications is more connected. Think about it. Today meetings are a set of disconnected experiences, and typically knowledge falls between the cracks, from one meeting to the next. Things like action items and meeting notes, intelligent communications treats our interactions more like a life cycle, so that they can be easily recalled and shared. It minimizes context switching and gives us a more connected, consistent experience across the multiple tools that we use to communicate and collaborate. Intelligent communications is also more insightful, powered by AI and machine learning, we get the insights we need in real time. Like that colleague who has just the right skill set to help us or everything you needed to know about a project that you just joined. Communications isn’t just for talking, it’s for getting stuff done. So, we expect next gen tools to give us the insights, that help us take action. And finally, intelligent communications is proactive. It anticipates our needs and gives us helpful tips to better manage the growing deluge of information and requests that we get each day. Our tools will prompt us to share a file or schedule a meeting, or even flag content that we should follow-up on. During a meeting, our tools will break down language barriers. It will eliminate distractions and even write up the meeting notes. At Microsoft, we’ve taken our very best technology including Microsoft 365, Azure, Cortana, and Microsoft AI to bring intelligent communications to life. And we’ve tapped into something that is unique to our company, the power of the Microsoft Graph. For something to be intelligent, it needs a brain and that’s exactly what the Microsoft Graph is, a powerful brain that connects to billions of data signals coming from every email, every file, every message sent within Office 365. And on your behalf, we’re able to offer up real time proactive insights, like predicting who you’re most likely to collaborate with on a project, or predicting which person you mean when you say, “Call James”. The Microsoft Graph has already made many of our productivity, security, and developer products more insightful and we’re uniquely positioned to do the same with communications. So, how are we bringing intelligent communications to you and your customers? The answer is Microsoft Teams, which we are so excited, was named Best in Show here at Enterprise Connect. A year ago, today we introduced Microsoft Teams which is our foundation for intelligent communications. What is Teams? Think of it as a digital version of an open work environment where everyone can work together, share information, and be in the know, regardless of where they are located or where they sit on an org chart. It’s where teams of two or 2,000 can chat, call, meet, co-create, and share. Where teams need to get people together and get things done. And best of all, Microsoft Teams has intelligence built-in tapping into the Microsoft Graph to give you those connected, insightful, and proactive experiences we’ve talked about. But hey, enough talking for me. Let’s see it in action.>>Thank you, Bob. Hi, my name is Mark Pottier. I’m an Engineer on Microsoft Teams. We don’t just build the product, but we use it every single day and I’d love to show you some of the features that I really like, and I think you’re going to like too. When I get up in the morning, the first thing I do is reach for my phone. I like to check in and see what’s happened at work. And so I start off by launching “Teams” and I quickly look through “My Activity”, this is where all my messages have proactively been organized for me to go look at, based on importance, based on whether I’ve been referenced. I can also look at “Chat” to catch up on recent conversations. I can also go look at “My Teams” to check on all of our group collaboration that’s happening. I can look at “Meetings” to get a glimpse of what’s ahead for me in the day. And finally, I can look at “Calls” so I can check up and see whether I’ve missed any calls from my desk phone at work and even check up on voicemail. So this gets me going, gets me oriented, and I’m really all caught up in a couple of minutes. When I get into work, I switch over to my desktop application. And as you can see, it’s organized in the same way as my cell phone is, right? So I have my activity all the way down to my files and calls. The core of Microsoft Teams is really about teams and so here I’m a member of five different teams. A team can be a handful of people that are collaborating together on a project and scale all the way up to thousands of people. It could be a division or a very, very large group. Within a team, are individual channels and this is where people come together to collaborate. So under Engineering, you’ll find hired hardcore engineering stuff like Wiring Diagrams, and Code Snippets. And maybe under Marketing, you might find things like PowerPoint presentations and other fluffy things. But that’s kind of where it shows up, right? So, we really believe that everybody should be able to work the way that they need to work and so there is a lot of extensibility built right into teams. If you have third-party applications that you use on a daily basis, you shouldn’t have to sacrifice those. So an example of that is we’ve added a bunch of applications up here. We have “PowerBI”, we have “Trello” and other applications that you can add in. So “Trello”, for example, it’s full integration, it’s interactive, I can go ahead and move tasks one column to a next, get things more, get things done and track by activity. These are just a few of the examples of applications that we have. We have way, way more in our store and we’re just making this richer and richer every day. And you can find all the applications that you need right here to make your teams productive. So how do people actually collaborate in teams? Well, they post different topics that they want comments on. So for example, Adele here posted a new post on a new customer engagement deck. So I can expand it, read the full post, and I can see that she’s even posted the document right here. Well, because we’re integrated into Office 365 and we’re just part of the suite, I can go ahead and “Click” on that document and see it right in line within Microsoft Teams. I don’t even have to jump out to another application. This keeps me focused in on task. If I want, I can even go ahead and edit the document and add in my review and comments. So that’s pretty good. We can also see that people are responding to this particular deck. So Megan for example, went ahead and replied to us and actually flagged my name as well and Francois replied in French. Well, I don’t speak French so that’s a little bit of a problem, but in teams, we believe that everybody should be able to communicate regardless of where you are in the world, and regardless of what language you speak. So, we’ve built in “Instant Translation”, where I can come in and just translate this directly to English. Isn’t that awesome? I love it. In fact, Yuna also went ahead and replied in Japanese. We can go ahead and translate that too. Really cool. So she wants an expert to review this before we send it out. I do not really know that much about drones, and I need to find an expert in the organization to help review this. So usually, I’d have to go and talk to a colleague and find somebody that might take me a day to find the right contact. Well, with Microsoft Teams and the Microsoft Graph one of the things we can do is we can just ask teams. So I can say, “who knows about drones?” So what this is doing is this is looking through all the channels that I’m a member of, and looking at the Microsoft Graph and find the experts in my organization based on the content that they’ve produced. And this brings it right back so I can get quick access to who the experts are in that particular topic. Saves me a ton of time, no more asking in my organization who is the expert in so-and-so and what topic. Isn’t that awesome? I just love that. All right. So we have Delenda, that’s going to be our expert. Let’s go back in and schedule that meeting. So, a few things about meetings and teams. First of all, we’re the full deal. We have, you can do one on one meetings, you can do group meetings, you can scale all the way up to broadcast soon in the next quarter. So we really have you covered there. On a devices side, we work on Mac, we work on PC, Android, iOS and even the Web Client. So, everything has a full meetings experience. You’re not sacrificing something by being on a different platform. Other things that we’ve added recently is we’ve added anonymous join. So, if you happen to have contacts that you need to pull in and they don’t use Microsoft Teams, but they have an e-mail address, you can pull them in. They’ll receive an invite, they can click on it, they’ll use the Web Client, and they’ll be brought into our lobby. From there you can meet them into the meeting. So that’s great. It’s huge scope. And finally, we’re also investing really heavily in companion device experiences. So what do I mean by that? Well, if I’m in the PowerPoint presentation I’m already presenting from my laptop, I can also join using my phone and this gives me a couple of new features. The first thing I can do is I can actually control the presentation from my phone. I use as remote control and so I can walk around and present with people and actually advance the slides and back them up and see the content. The other thing I can do is I can access my camera and I can share content around me. So if I’m meeting with people that are off-site and I’ve written something up on the whiteboard, I can just hold it up and show it to them and will come right through into the meeting. It’s a great way of building more engagement. So, we want to schedule this meeting. Let’s go ahead and go do that. I can come into this channel and we want to talk about this particular deck. So I’m going to go ahead and schedule it right in the channel. So here we go. We can say talk about drone. And I’m going to go ahead and schedule it right now and we’ll add Delanda. So what this has done is scheduled the meeting inside the channel and now everybody who’s part of this channel can see that there is a meeting coming up. Delanda who I added in will get an invite on her calendar so she’ll know to join as well. And as what happens here is because it’s a public meeting, as people see the meeting come online, they’ll be able to join it right away and be able to hop in. So let’s go ahead and jump into this particular channel. Okay, here we go. So Delenda joined, we’ll go ahead and hop into the meeting. Great. So this is our pre-joining experience. So as you can see I can check myself out, fix my hair, make sure I’m composed, go ahead and decide whether I want to use video or audio and check my devices. And then I can just join. Hi guys?>>Hey Mark, How’s it going?>>Good. Hey Delenda, there’s some distraction in the background with that big poster board with confidential information written all over it. Can you do something about that?>>Yeah, let me get rid of it.>>Awesome. So this is it, is that cool? Plenty will flip through that a few times. Yeah, so this is a great feature. This is one of the things we’re doing to try to make you have, let you have more successful meetings. If you happen to be meeting at home and let’s say you’re doing an interview on the BBC, you have a little kid runs in behind you, this would be a great feature to have, wouldn’t it? Like you just blur them out, they don’t have to see them. We have to work on kid mute next. So that’s a great little feature that we have. I think it’s going to really be more compelling. Another thing that we can do is we can share content right into the presentation. So before I’d have to go out and share my desktop and maybe access PowerPoint and juggle between apps. Well, now we have all the content right here. In fact, we proactively identify which files are most relevant to this meeting and surface them, and I can just share the content right into the meeting and control the PowerPoint presentation from the meeting itself as well. So it saves me a lot of time and switching between apps. Finally, we also have call recording. So this is coming next quarter and it will capture the entire event of the meeting. You’ll see people join, you’ll see the content that’s being presented, you’ll even hear all the video or all the audio track of everyone who’s speaking. And to give you an idea of what that looks like, that will be captured, packaged up, and then put back into the channel so other people can refer back to it later. So bye guys, I’m going to show how meeting recording works. So we have another meeting that we’ve recorded, it takes a while to transcribe. So we’ll go ahead and open that up. And here I have the whole meeting as it unfolded and as it was recorded>>Good morning guys.>>Good morning.>>Thanks everyone for joining this morning’s call.>>What’s great about this is that I can experience the entire meeting as it occurred and because this is up in the Cloud we’re using our cognitive services, everything is already transcribed and I can even turn on the closed captioning. So, if I’m meeting someplace where I need to be more quiet or I don’t want people to overhear I can go ahead and see that. In addition to that, I can also do search. So, for example, I can search on probably the most important thing, which is my name, to find out where I was talked about during this meeting that I didn’t attend. I think you’ll probably all use this feature. So, I can go ahead and click on that. Exactly. So, I go ahead click on that and jumped to right at that moment in the video, which is great, right? So I can see exactly what happened. So, the last thing I want to show you, which kind of gives you a full feeling of the extent of our product is the calls tab. So, calling is critical, right? And a lot of products have void calling. We have void app PSTN all built in. So, what’s great about this is that I can not only call everybody in my organization but anybody on the planet with a phone number. And we’re also are building out a complete Cloud PBX capabilities. So, I have “Contact”, I have “History” is here so I can see incoming outgoing calls. My “Voicemail”, complete with transcription is also included. And, of course, I have E911 and all the other regular things that you would expect. But that’s basic calling and we all know the enterprises need a lot more. So, we’re investing deeply in sort of these enterprise workflows that are required. So, things like organizational auto attendant, call cues, delegation, consultative of transfer. In fact, right now, I’m set up to be a delegate for Ilya and so, look at that someone is calling for Ilya. Who knew? We’ll go ahead and answer that.>>Hi, Irena.>>Ilya, I would like to learn about devices.>>Okay. Well, let me see if Ilya is available. So, we’ve implemented consultative of transfer as well. So, I can go ahead and select Ilya, reach out to him. He’s over there.>>Hey, Mark.>>Hey, Ilya. How are you doing?>>I’m good.>>That’s great. Can you take a call from Irena.>>I can. And actually, I was just about to talk about devices that you just go ahead and listen in.>>Perfect. All right. Thank you.>>Well, good morning everyone. You just saw Mark show you exactly how Microsoft Teams is now a complete hub for collaboration and intelligent communications. It’s my privilege to now show you how we are bringing that same Teams intelligent communications experience to every device you need in your work day. So, let’s start with my personal space right here. I’m sure many of you would agree that the most well-known personal communications device at work is still the IP desk phone. And so this week we announce, together with our partners, that we will be bringing the full native Teams experience to a new generation of IP phones. From our friends at Audio Codes and Yealink. Now this Yealink T58A is actually the phone I have on my desk. And I love the crisp big screen because I can fully navigate the whole Teams’ UX. And actually, I also love having my meeting schedule always visible so that I can join meetings with just one touch. But we’re not only bringing that full Teams experience to these devices, we are also enabling natural language interaction powered by Cortana. So, if I were to hit the speakerphone button, for example, you don’t just get the old dial tone. You get this Cortana experience that shows you all the same skills that Mark just showed on the PC. So, I’d be able to do calling. I can find out information about someone like Delanda. All the same skills and insight. Now, with Cortana and Teams, our goal is to make everyday tasks much easier. I’m sure you all had that experience of hitting 52 keys or so it takes to do a three-way call. While with Cortana, all we have to do is ask. Call Delanda Coleman and James Caye. Cortana heard me, is doing exactly what I want. It’s just that easy. Thank you. Now, we also know that in your businesses, you now have many mobile first workers. Using that awesome mobile Teams experience that Mark just showed you. So, for those workers we’re also very proud to announce a new category of devices that we call mobile phone stations. And here, I have a preview of the first device in this category from Plantronics. So, if I put my mobile device here, it not only charges wirelessly but it will also automatically transfer my team’s call or meeting to the built-in super high quality speakerphone or the great Plantronics headset for privacy. These devices all have dial pad and hard buttons that new users are familiar with including a Teams button that makes it super easy to get into the Teams experience. We are incredibly excited about how these devices will help your mobile first users get into Teams very quickly. So, let’s talk about shared devices, room systems. We know that many of you still have lots of VTC’s, maybe legacy devices in your businesses, that may not be fully depreciated. So, we are partnering with our friends at BlueJeans, Pexip and Polycom and they will be delivering new cloud video interrupt solutions, later this year, that enable all of your legacy VTC’s to join Teams’ meetings. But we also know that your users are going to ask for, and love a full native Teams experience on room systems. So, I’m going to go ahead, grab my laptop, and walk over to our meeting room area here where we can talk about native devices. A year ago, we launched Skype room systems to really fantastic industry feedback. People love how these devices enable great audio, great video, and super easy one-touch join for scheduled meetings. This week, we announced that every Skype room system will also be getting a native Teams experience in just a few months. But we’re not stopping there. We know that many meetings today are ad hoc. They don’t include a scheduled room so we’re delivering a new proximity detection feature that makes it super easy to pull in any available room system right into a Teams meeting. So, I’m going to go ahead and join a meeting here in Teams. And this is the pre-join screen Mark showed you. But now, because it knows that I’m close to a Skype room system, it’s giving me the option to join and add the room all in one touch. So, when I do that, it’s going to go ahead, invite the room. I’ll say I really want to join. And not only that the room join, but my laptop joined in content-only mode. That’s right. No more annoying audio howling with multiple devices join in the same room. So, I’m actually going to go ahead and disconnect on my laptop because there’s another innovation from our partners that I want to demonstrate for you. So, Delanda is in a room where she is using the same setup I have here. So, she’s got the new HP Skype room system with the Logictech MeetUp. Many of you have told us you love the Logitech MeetUp, love its capabilities. And this week, our partners at Logitech are announcing a new innovation for the MeetUp. Shipping in a few months. They will enable intelligent video. The MeetUp will be able to scan and detect people within its field of view and automatically frame the picture on them. So, there you saw, do that all automatically. No more having to stare tiny little people at the back of a conference room. Not only that, but because it detected how many people are in the room. The MeetUp will shortly also be able to feed that count back to Teams and Teams will provide that data to you. So that, as an IT leader, you have the information you need to really measure your meeting room utilization very well. So, there’s just one more thing I want to show you on this room system. As I said, we’re not just enabling Teams meetings. We’re also bringing the power of natural language interaction. So, if I want to do something like add someone to the meeting, all I have to do is hit my “Assistant” button, add Mark Podiaer. And Cortana does it for me, understands what I wanted, calls Mark backstage. And Mark can just join with one button on his device. It’s just that easy. I’m going to go ahead and disconnect so I can tell you about all of our Skype room systems. We are bringing Teams to every room system. And this week, our room system family is expanding. Hopefully, all of you are familiar with our original room systems. First, from Logitech and then join shortly later by Polycom com and Crestron. Well, this week, we have two new friends in this family. Here, I have the new Lenovo, a beautifully-integrated system with console and audio built in. And, of course, the HP, a very flexible system that comes both with and without this great integrated audio module. Of course, last but certainly not least, we’ve got our very own Surface hub. And in just a few months, we will be putting out an update that enables Surface hub to also natively join Teams meetings. With this lineup of devices, we know we will have a great device for every kind of space, every kind of room system, every possible configuration. We also know that your users are going to love that native Teams experience with Cortana that you can only get on our certified devices. I invite you to check these out today. Thank you.>>Good morning. It is truly great to be here with you all on Team’s first birthday. If I think back to last year, Teams was really just a newborn. And what you can see today is the great progress that we have made. Today, Teams is available in 181 markets, 39 languages, with 60 percent of our users coming from outside of the United States. But what is most remarkable are our customers. Earlier this week, we announced that we have 200,000 organizations around the world using Microsoft Teams. This is up from 125,000 organizations just six months ago. We are so excited and we have learned so much from our partners and our customers over this past year and want us to extend the true thank you to them on Team’s birthday. I would also like to let you hear it from them in their own words. Let’s show this video.>>At the pace of business today and the evolution of business in a digital world, there’s a strong desire to move faster.>>Atkins employees have traditionally communicated through e-mail, through third party conferencing tools.>>Our people at Mott MacDonald use Skype for Business Online every single day. You’ve got the full power of the Mott MacDonald community right at your fingertips.>>Microsoft Cloud voice services make it extremely easy for employees to collaborate.>>Since all of our employees are using Skype for Business, we’re introducing Teams across the organization as well.>>It puts the communications right alongside the content, and that’s what you really need for collaboration.>>Without having to travel, we can come together much quicker, make decisions. And an important factor is how we’re able to communicate with and collaborate with our clients and our partners.>>The reaction from people has been incredibly positive. They can share screens, they can share files, they can work collaboratively on documents.>>We’re driving that editing on-the-fly within the Team’s environment so that the entire team can see that editing.>>The ability to use it across multiple devices and multiple modalities is important to us.>>The data is secure. People can only see what they’re invited to see.>>My number one use feature is the animated GIF. We’re trying to drive a cultural change in terms of how people collaborate and work together.>>Each of the channels is customizable and extensible. It’s the ability easy to configure your channel as you need it.>>We’ve started to use the cloud recording feature in Microsoft Teams meetings. Once recording is finished, it appears in the channel, so you can easily refer back to stuff.>>This experience to our employees is very important because it supports our vision of agile working.>>With intelligent communications, we’re really excited to see employees flawlessly communicate with their colleagues and their customers. A communication tool has to scale across the globe. Microsoft is right in the middle of that.>>The way that Teams operates is the way of our world today and where it’s going, versus the way that maybe the corporate world operated before.>>And today, we’re unveiling our new teleport or technology by having Jeff Monaco, the CTO of GE, be here with us in person. You saw Jeff on screen. Jeff, you guys have been going through a journey at GE, where you have been rolling out Skype for Business and now you’re starting to roll out Teams.>>Okay.>>Can you share how that’s gone?>>Sure. So we really looked at this as the next steps for us in our journey towards intelligent communications across three different planes, really. The first one is to roll out the Skype for Business client to our employees globally. With 300,000 employees across the globe, operating in 170 different countries, it’s quite a challenge. The next was really to empower all those employees with Teams in parallel. And then the last was really around the PSTN voice, the dial tone capability that Skype comes to the market with. So, really, we spent really Q4 of 2017, aggressively rolling out to 220,000 employees on Skype for Business. So, obviously very fast pivot for us and we’re really sort of coming out of that, we’re really looking at five and a half million meeting minutes per day on this platform. So, obviously, I have my team looking at every single network monitor. Everyday, we’re making sure that we’re successful. For Microsoft Teams though, we really sort of started an early adopter pilot with about 5,000 people using the platform in just two months. Great feedback, we’re sharing that feedback, and Microsoft seeing great turnaround time on this fantastic platform. The last pieces later on this year, we’ll start to leverage that Skype Client and further on Teams to deliver a new dial tone package for our employees.>>Now, really exciting and amazing numbers. Can you share a little bit about your devices strategy?>>Sure. So, at GE, we have about 2,000 rooms that have voice and video in them, and it’s really sort of a mixed bugs. So we really are introducing this Skype Run System platform and Surface Hubs. And first of all, amazing things I’m seeing downstairs from the partners. I’m truly excited to see what comes next. But as we introduce those Skype Run Systems, and employees are really feeling comfortable using that technology, we also live in this world of Interoperability. So we’re using again the partners downstairs to make sure that Interop works flawlessly for our employees so that either joining these meetings or even scheduling these meetings is flawless.>>Great. And you told me a really interesting story about Skype Meeting Broadcast. I thought the audience may be interested. And can you share that?>>Sure. So, GE has been in the news, and some of you are aware. And really through that journey, the leadership team has really come together and tried to figure out ways of engaging with our employees to share strategies, give people guidance on what to do next, and operate within the priorities of the company. So it’s really seen a huge ramp up in Broadcast. So we’ve been leveraging the Skype Meeting Broadcast platform. After we launched the Skype for Business platform, and really just in two months, we see about six to seven hundred meetings taking place with tens of thousands of users and our employees are really enjoying the fact that leadership is talking directly to them quite frequently.>>That’s fantastic. We’re all very excited about the future of Skype and Teams at GE. And with that, we’ll turn it back to Bob.>>Thank you.>>Thank you.>>Hey, thank you Laurie and Jeff. So we’ve seen how Microsoft Teams has launched our vision for intelligent communications. And we’ve heard from customers who’ve already started this journey. Now let’s talk about what we’re going to do to help you, our customers, and partners bring this to life in your organizations and those that you serve. For several years, I was responsible for Microsoft’s IT Infrastructure, where our job was to figure out how technology could increase value to our company, to Microsoft. One thing I’ve learned about taking on new technology is that change is personal and can affect morale and culture. Therefore, change management is as important as any feature. So, with that in mind, there are three things that I consistently hear from IT Departments, that I get the opportunity to speak to. First, Microsoft, what do you do in about security privacy and compliance? Second, what are you doing to help us deploy and manage Microsoft Teams? And finally, what is Microsoft doing to enable infrastructure like hybrid environments? First, because we’ve built Teams on top of Office 365, we’re able to offer the security, privacy, and compliance that enterprise expect, just like we do for Skype for Business. We’re also moving forward to support new privacy standards like GDPR and offering compliance features like Legal Hold, eDiscovery, Compliance Content Search, Auditing, and Retention policies. Second, we’re investing heavily in the tools that you need for management, including call quality and analytics. We’re also redesigning our admin experience in Office 365 to provide a more modern experience for all of you. This means giving you, as communication experts, the ability to manage hybrid environments in order to leverage your existing telephony infrastructure. On Monday, we announced direct routing for Microsoft Teams coming next quarter. This enables you to connect to your SIP trunks up to Teams. This will allow Microsoft to bring enterprise voice on a global scale to our customers. And third, for those of you who have been part of this communication journey with Microsoft, we continue to support Skype for Business on-premises in your infrastructure. We’re planning to release the next version of the Skype for Business Server later this year, which will also enable simple pathways to our cloud. When our communications become intelligent, we’re more informed, we get a lot more done, and life gets easier. And I want to tell you that we at Microsoft are more committed, more impassioned, and more excited than ever to support you on this mission. Microsoft Teams is the only product on the market that brings everything together, unified communications and collaboration tools that you can use across a variety of devices like we’ve seen today. And only Teams has the built-in intelligence across all of these experiences with the enterprise grade security and compliance we all need for business. As you’ve heard today, many enterprises have already begun this journey towards intelligent communications. We’d love the opportunity to show you how Microsoft Teams can change the way people work and make life easier for all kinds of Teams. Thanks for joining us today. Come by our booth and check out all of our new Teams-enabled devices. I loved them all. I particularly love things like conference room phones. We’ve got the Polycom Trio here and new entrants from Crestron and Yealink, all running the native Teams experience. So, together, let’s build the future of intelligent communications.

OSCON 2012: Tim O'Reilly, "The Clothesline Paradox and the Sharing Economy"

thanks for coming so I want to start by making reference to a series of talks I said of giving back in two thousand eight I was sort of disgusted by some of the what seemed like the silliness of what a lot of developers were doing with social media the startup frenzy and you know the bubble mania and I gave a talk called work on stuff that matters and wrote a blog post about it in January of 2009 I was thinking it was a wasted opportunity that developers weren't working on the world's great problems but then yeah when we had the financial crisis it was clear that it was more than just a wasted opportunity it was something deeply wrong with our economy you know we've had companies that seem to have forgotten a principle that I Riley has tried to live or live by which is that a business should create more value than it captures and so you know we've had this idea which was originally promulgated i believe by milton friedman in the in the 80s which was that the only responsibility of a company is to make money for its shareholders in fact it's they're legally responsible to do that and i call it the big lie of modern business it's very clearly a life only because of the way that company management typically Lutz the shareholders in in the form of excess of executive compensation but there's so many other ways this is just wrong I recommend this book by Lynn stout about why it's wrong and there's a wonderful paper that i came across by george akerlof and paul rumor called looting which really predicted what we saw in the financial crisis he said the normal economics of maximizing economic value is replaced by the topsy-turvy economics of maximizing current extractable value which tends to drive the firm's economic net worth deeply negative and this kind of short-term thinking people taking out way more than they put in is been incredibly destructive to our economy and I contrast this with the vision of business that was put forth in lame miserable victor hugo's wonderful humane novel about you know so many things when I say it's just it's a wonderful book about how to live and Jean Valjean is a former criminal he was arrested originally for stealing a loaf of bread spent time in jail is eventually released on parole gets in trouble again it goes under an assumed name and becomes a businessman and he makes this whole region that he lives in prosperous no the quote was there was no pocket so obscure that it had not little money in it no dwelling so lowly that there was not some little joy within it but the key point that Victor Hugo makes he's his father Madeleine that was his pseudonym made his fortune but a singular thing in a simple man in business it did not seem as though that were his chief care he appeared to be thinking much of others and a little of himself so he was working to make everyone prosperous and he became prosperous through that process and this is a point that Nick Hannah were made in kind of a wonderful somewhat controversial Ted University talk that I saw earlier this year its controversial because Ted actually refused to put it up online for a long time was kind of a stink about it because what Nick said and I should say who Nick is Nick was the first non-family investor in amazon com he was the founder of aquantive which was acquired by microsoft for six billion dollars he's a very very very successful capitalist and he gave this wonderful talk in which he said he addressed this big lie and he said I want to tell you that capital does not create jobs he said customers create jobs you know and if we don't have a vibrant cycle in which there are people who can afford to buy our products the whole system falls down that seems like common sense to me you know that it's a system and economy in which everyone does well Nick talks about that in his book which he wrote with Erica Leo called gardens of democracy and this is sort of wonderful seemingly tautological line we all do better when we all do better and that's how I think about business and yes I've been you know really thinking a lot about this this is some pictures a picture I took when i went to occupy wall street back in September of last year and you saw this this sense that there's something wrong you know with the way our economy is working we see a focus on income inequality and so I started asking myself how do we make the economy better while also creating a richer fairer world this is a key question that all of us need to be wrestling with and I keep coming back to this notion that you know we articulated a Riley a dozen years ago that it's essential for companies to create more value than they capture and you know an economy really is an ecosystem it's not just like an ecosystem it is an ecosystem and what we know about ecosystems is that if you take more out than you put in the ecosystem eventually fails and this is something that some of these guys I up there have pictures of Bernie Madoff and allen Stanford and Charles Ponzi the eponymous source of the famous Ponzi scheme it didn't care about but these guys Lloyd Blankfein of Goldman Sachs Jamie Dimon of JPMorgan Vikram Pandit see group near come they seem to have forgotten it to that their job is to create value not to extract it but here's a set of people who didn't forget that now you guys I'm sure recognize those faces they have all created enormous value the open source communities the internet are a gift by people who didn't actually make great fortunes some of those people have done okay I'm looking at you Monty but you know most of those creators up there gave something away and it became uniquely valuable to a lot of other people you know some of these skies have made huge fortunes at least in part making use of the software that was created by those people who created more value than they captured the ones on the last slide and you might be surprised to see Bill Gates up there along with the rest is equal well gosh everybody else you can say yeah they built on open source software in some way but even Microsoft has a used a lot of open source has come to actually embrace it as we predicted many years ago they would but for those of you who round the industry back in the early 90s when Microsoft was really running out of gas you know I made this joke before but and some of you may be too young to remember this but their idea of the future was this product called Microsoft Bob and it was just a total disaster and then along came the internet and they had a renaissance with windows 95 which was their product that really tried to embrace the internet and so they got another 10-year run on the back of open source and the internet but there are companies even beyond these obvious usual suspects and this really became clear to me recently when I had a conversation with her srinivasan who is the CEO of something called endurance international group a company I hadn't ever heard of they're actually the parent of bluehost which is one of our sponsors here actually as a result of this conversation i had with with hurry hurry came to mean he said i built my business on open source software and i want to give something back and I said tell me more and he started talking about how the web hosting business is really an open source subscription business yeah what do you get when you do web hosting you get subscription access to a bunch of open source software it's a business model not one of the obvious ones but it's a business model for the software that you guys build so I started talking with Hari more and more about this and in the course of our conversation I remember this wonderful paper by a guy named Steve bear that i read in this magazine coevolution quarterly which was Stewart Brand successor to the whole earth catalog and I'm giving away my age when I say that this was published in nineteen seventy five but it's stuck in my mind all this time and the essence of the argument in the clothesline paradox is if you put your clothes in the dryer the energy you use is measured and counted but if you hang them on the clothesline it just disappears from our economic accounting and it struck me how much that's also true of open source you know we may know in some visceral sense that we've created all this value and that other people are built on it but we haven't told that story and so I started brainstorming with ha right about whether we could work together to tell that story and you know we start with this notion that the companies that explicitly have monetized open source like red hat or Acquia our MySQL or Cloudera WordPress a little bit like the way that solar is represented in these energy charts you know this is what Steve bear talked about the clothesline paradox he's like come on it grows our food it does this all these ecosystem services we get from the Sun even our fossil fuels are basically son from a long time ago and yet you look at the charts and there's this little slice on renewables and then solos this little tiny slice at the top you know what are we missing you know that's the clothesline paradox so you know as I mentioned these companies have all built and created an enormous value using open source but I thought not just Bluehost because Bluehost made this you know how he made this great point that web hosting and domain name registration is effectively you know this open-source subscription business but I also realized that ISPs like Comcast are selling access to open source software and that's a 79 billion dollar market very profitable in the US alone right so when people go and they pay an ISP for access to the Internet yes you know that the carrier would have you think oh well you're paying access to our our pipes but why do you want those pipes it's a little bit like the water company saying you know you're paying us for access to our pipes or the electric company saying you're paying us for access to our wires no you're paying for access to what goes through those pipes and over those wires and in the case of your subscription to your ISP you are effect paying for access to the free software that you and people like you have created and the content the free content that people like you have created and shared on the net so but this is a further point that Hari made that really struck me and that was he pointed to a McKinsey report called internet matters the net sweeping impact on growth jobs and prosperity Mackenzie made the point that having a website increases the productivity of small businesses by ten percent and I was really struck by this because that really shows how this is huge downstream effect you know hari saying to me hey yeah we're able to offer these web hosting services to smbs and actually I should say that the hosting companies according to a survey done by Bluehost approximately seventy percent of their of their hosting customers are small businesses not individuals so if having a website increases the success of these small businesses really that's where the value of open source is ultimately getting captured in the economy by you know millions and millions of people many of whom may not actually even know that they're using open source Oh actually based on the survey we found that many of them add more awareness than we would have thought so we wrote this report with Bluehost it's available down in the O'Reilly booth it's also available for download it's got some interesting stats about the kind of software that is in use at least among Bluehost customers and its relative importance some survey of about 4,000 Bluehost customers and then data from about a million customer that we analyzed but here's the thing this is a pretty wonky model because what we did was we took the survey data which we're in which people reported their size of their business and that applied it across the you know the million customers we said okay so about seventy percent are our businesses well how big are they and then we did the math you know and we said well how many companies is it and how much revenue is that and we came up with a hundred and twenty four billion dollars worth of revenue in the small businesses that are using you know free software via Bluehost services and you know we figure you know they didn't disclose their their market share but we figured their ten twelve percent of the overall hosting market based on domain name surveys and stuff like that so that means we're talking about literally one and a half trillion dollars of output that sort of in small businesses that are you know getting benefit through through web hosting so it's a pretty big market and a pretty big gift that was made by this community to people who are benefiting downstream so as you're thinking about other clothes line paradox economies this sort of sharing economy that the Internet has made possible and I okay I'm not getting my click ok and I I thought a little bit about you know back to isps you know we have this mythology that everybody on the net wants their content for free I said well what's wrong with this picture you know I pay 70 bucks a month to comcast to watch television and they think I'm paying for content I pay 70 bucks a month to comcast to use the internet and I'm getting it for free you know somebody is kidding themselves right and it's particularly ironic because you know when comcast or some other cable company you know you know shows television content they actually pay the content provider when comcast customers watch YouTube spend time on Facebook or Twitter or visit websites comcast gets its content for free much of it created by those very customers who are paying them for access so you wonder who's getting the free ride and you start putting on these filters you know like the clothes line paradox and you start saying oh actually you know maybe you know there should be a Content subsidy flowing from the cable providers to all those free creators on the internet instead of the other way around them kind of saying that we're getting something for nothing you know 79 billion dollars in revenue you know derived from free software and free content so on the free content I was really struck I have a three-year-old grandson and I was introduced to this whole genre of thomas the tank engine train crash videos this one has nearly 24 million views it's a video that was made by a four or five year old and his dad his complex Thomas the Tank Engine train set all these creative crashes that he's made my eye can see that my grandson is not the only one who loves this genre this is you know the sharing economy at work but I wanted to learn more about this so I went down to a conference called VidCon a couple of weeks ago which is the kind of the youtube gathering place and it was it was amazing i mean the audience yeah probably seven or eight thousand people but screaming fans I mean YouTube stars come out on stage for keynote like this and it felt like watching the Beatles you know this is a young YouTube star named Charlie MacDonald had a autograph line that's the line waiting for the sign autographs for him I mean it's like whoa this is really happening but what was really interesting is that I learned some things about how YouTube was starting to be monetized I heard some stories unofficially from people who didn't want to go on the record so I can't mention names but a major pop star actually makes more money on YouTube on iTunes you know what's more more than half of the money comes from fan video basically user-generated videos on which they've used that pop stars music as a soundtrack and google has technology which you can see in this graph i circle down there it says you know contains content from in this case can't quite read it dig dis right this is the the viral diet coke and mentos video alright so they use somebody's soundtrack and Google automatically detects that and forwards the money to the music company the person who made the video doesn't get any money the advertising revenue actually goes to the you know to the music companies and this is actually a fueling a real economy there which is really taking off if VidCon is any sign it was crawling with Hollywood agents it was just a whole other world so I think this the sharing economy is once again being monetized in exceedingly interesting way so that that that gift what starts out as a gift economy becomes a real economy so you know of course then you have new disruptive businesses starting on YouTube you know or fuel by YouTube like Khan Academy we have I should give a shout out here also to our own sort of maker camp video learning experiment over on Google+ which is happening this week this is an amazing story I met recently with roger mcnamee who is a well-known silicon valley venture capitalist but he also has a band called moon Alice and they have a single that's been downloaded something like 1.4 million times direct from their website he employs about 70 people poster artists unit roadies they do a lot of different shows in a year you know and he actually calls this the hypernet because they film all of their shows live using six iphones in HD they've got a simple mixer but they stream them live over you know directly to people watching them on phone ceases bypassing even the internet it's the new creative economy at work I won't even go into Kickstarter and how that is you know changing the creative economy but you can kind of see this something really interesting happening here where things that were once just gift economies are becoming richer and richer real economies Lisa ganske has a site called the mesh where she talks about the sharing economy she notices now almost 7,000 companies that are doing one version or another of some kind of sharing economy play you know and you look at how something like couchsurfing just for fun has become a huge successful company like Airbnb if you want to how successful air B&B is becoming they've been out there for four years in February they hit five million total room nights by June it was 10 million so in four months they doubled from their previous is the previous four years so they've hit the knee of the curve you know you look at relayrides Shelby Clark the founder told me recently that they have a lot of anecdotal stories people buying a second car so they can share them you know Lisa lists companies where you're doing crowdfunding of solar projects so it's a really interesting new thing happening this is a page from etsy this is a lamp that I own it's sort of a cheap lamp that's been made into a beautiful art object by somebody pasting cut out circles of a music manuscript on it is a creative economy people adding value etsy by all accounts is on the same growth curve as eBay was in its early years really taking off as a creative economy play and I want to just talk about other aspects I saw a wonderful TEDx talk recently by rodney Mullen who those of you who ever skateboarded you probably know Rodney he's apparently the guy who invented many of the most famous street skating tricks he was a you know champion skater I started a company all kinds of things but he had this is I highly recommend this talk he ends with this wonderful disclaimer we said look I've been successful I've been famous you know none of it matters very much compared to the creativity he said there's an intrinsic value to creating something for the sake of creating it this is beauty and dropping it into a community of your own making and seeing it dispersed and seeing younger talent take it to levels you could never imagine because that lives on so when I've been thinking about you know the problems in our economy and I'm thinking about what we can learn I think about the creative economy which includes this economy of open source and I think back about this notion that we had back at the very first pearl conference in 1997 15 years ago now I introduced Larry wall on the stage of the predecessor to this conference and I was influenced by a comment that Eric Raymond made in the cathedral and the bazaar where he talked about open source economies as gift cultures and as a wonderful book by Lewis hide called the gift that goes into this in more detail the notion is that in a gift culture you gain status by what you give away by the value you create not by the value you take or keep and thinking about that and thinking about the world's problems in this notion of creating more value than you capture I just wanted to celebrate that this community figured that out a long time ago and has been kind of a beacon of hope for how we need to rethink the economy of the future so what I'm really here to say is thank you for showing the way you

How to Dominate the Cannabis Industry

if you play it right for yourself it could be the most remarkable thing but as a collective these very early days are super important this is inevitable at scale this is watching this makes me laugh because this is exactly what the rooms look and this is actually way more this is more even though it's just these days for me a small group you know this is way more faces than the ones that I saw in the tech space and a lot of these faces went on to become the founders of uber and succs and the founders of Instagram and things that nature so couple things number one you got your perspective in 2006 and seven when I went to South by Southwest people were there to be part of tech for the sake of tech to change the world the the the aspirations and the ideology were remarkable the far majority of this room today 20 18 right here together is in it for it they've been in it they're not flying in from Wall Street or Silicon Valley there's people in here there's people in here but the majority of this room is in it now this is super important as I hear that wonderful thank you and I get it and I respect that this is a very important conversation I'll tell you why the OGIS in this room that have been through it that been you know it's funny I was spending some time and looking at an article being rated and I was telling some of the people on my team who don't even hear this story the amount of times the ABC came to wine library because I was navigating and doing things early that nobody ever did before and when your biggest you get picked on because you can pay the fine don't get it twisted it's very simple it's called winners tax they don't tell you that a b-school but that's what it is I'll say it this way it's unfortunate for me unlike when I got into tech or many other things I've done in my life because of the profiles my business career it's harder for me to kind of go into new spaces and do what I naturally want to do to be very frank I I don't know if I've ever felt the combination of of gratitude and feeling humble and at the same token a sense of responsibility of giving this talk today because much like the way I entered into the tech space sort of wide space for other things that I've done I just want to learn right there's a lot you know I'm doing a lot of listening the reason I teamed up with Josh ROM and the rest of Green Street is I didn't want to come into this space and think that I knew everything or things that nature I want to take it nice and slow and pay attention being underestimated and misunderstood is a massive business advantage there's a lot of people in this room that are so desperate for acceptance of like this is real and all these kind of things like this is gonna be in it spending so much time trying to convince somebody of the legitimacy or the seniority or the sophistication of the space without realizing that they should be spending 100% of their time on the end consumer and building their advantage their leverage and preference of the majority of the people in this room would actually be for people coming into the space to dramatically slow down not speed up for all the good that dollars and all these other things come out the more time that you have planting your flag and establishing your brand and building a relationship with the end consumer the more leverage you have trying to convince people that are no people is a waste of time and I think that's just something some of you need to hear because that no person for a lot of you is your fucking mom that no person is that your brother that you respect or your homie or your silic so just be very thoughtful of who you try to convince this is real because I think that's a lot of wasted energy in early times number two you need to be thoughtful of all the new people that are coming in if you play it right for yourself it can be the most remarkable thing but as a collective these very early days are super important this is inevitable at scale this is watching this makes me laugh because this is exactly what the rooms look and this is actually way more this is more even though it's just these days for me a small room you know this is way more faces than the ones that I saw in the tech space and a lot of these faces went on to become the founders of uber and sucks and the founders of Instagram and things that nature so couple things number one if you are fortunate enough to be smart enough and that's the only word I can think of if you are fortunate enough to be smart enough to be in this fucking room right now please do not do what so many of my homies from tech in 2006 7 & 8 to to me which is reminisce and are sad that they did not take full advantage of their pole position and where the world was going the biggest mistake that so many of you will do today is not network with other people at this place what I really am passionate about is for people in this room to understand how many options we do have if you're in this space even if you're a brand or if you're a grower your permission to be the media company of this space is there aka every fucking person this room needs to start thinking about their podcast yesterday every single person this room needs to be thinking about writing a white paper and putting it on LinkedIn yesterday everybody here has to shift from crying and that's what a lot of you are doing Wow Instagram and Facebook and Google aren't taking my money nobody gives a fuck about your tears stop crying about what you can't do and start figuring out what you can do you can be dominating Instagram spend the fucking 900 hours building out an influencer network so that can fucking do posts and give you cosines you could you could start a YouTube vlog and document the journey of building your business in a space along the way I wish I could watch suckss fucking blog and how he built Facebook you know if he was doing this ten years ago god forbid a que God willing your company explodes that vlog of how you made it is gonna be watched for the next 50 fucking years in perpetuity you can do a ton of shit but we have to shift our marketing mindset in this space from being advertisers to being media companies we have to produce content you have to produce content so I implore you to take advantage of this remarkable moment in your industry where it's not a baby but it hasn't even started and I highly recommend you understand how early platforms an industry start the ROI is in the fucking people the ROI is in the fucking people I promise you right now everybody is watching how you're navigating right now everybody is watching and there's a lot of you and I'm fucking was in the hall for four minutes there's a lot of you unfortunately getting seduced by the short term ROI and finances in the system and everybody knows it and you will lose three of you will get through and make that trade that's fine we'll never see you again but most of you will have a scarlet letter for trying to take from it instead of giving to it look if you make a podcast called 43 year old mom that's literally the name of it and you're targeting housewives and high-net-worth individuals who are gonna be in the edible space because that's who you're targeting you've got to really just go after your con your target audience with content that they'll consume that's always been the case but the reason I said 1 2 & 3 is patience is because that's what it's gonna take there's still a fucking massive stigma go fuckin read the first 15 years of prohibition you know what the biggest scariest things in the world are having too little and having too much when you're poor is fuckin on welfare you don't think the trust fund baby who's got a hundred mils got it bad you think that's the greatest well you don't realize that kid is always gonna be told that he never made it and he's got a drug problem and fucked up and I'm meds and at the psychiatrist cuz his game is broken before he even started the bottom line is my dear everybody's got fucking problems too because when it's yours it's yours and so I navigate happy because I'm just grateful for what I have and other people have more other people have less when I had a whole lot less I was happy with the fuck I had and I just every day recognize that if I'm in my own head and realize that everybody's got their own shit too then I don't spend time complaining and dwelling I spend time on doing this is forever you have made a decision to be an industry that will be over regulated for the rest of your life I promise you that and that's super okay either the first 20 years of my business life in a super regulated business but it still sucks compared to not regulated businesses like I don't know that's to tell you and so much like the admiration I have for Travis I could have never built uber because Travis had a DNA that was good at fighting City Hall I'm scared of City Hall that's just my DNA so I think everybody here has to make a decision for them if they have the must you know the muscles memory and the stomach to deal with the ebbs and flows of things the toughest thing and anybody will know this the number one toughest thing to me in life is not having little cuz you don't know it's having little getting something getting a lot and then losing it people going backwards just struggle and I think the toughest thing in a regulated business is cool they open up Illinois a couple people here to have Chicago routes or they move they go and they crush it they saw what happened in Cali they want to deal in like they fucking kill it and for some reason seven years later they reregulate it and it's gone tough that is what you're signing up for and I think the better kind of like nobody gives a fuck about your feelings right the the quicker you understand this is going to be regulated in perpetuity then you can start really starting to think about how you navigate and how you go about it so I wish you guys the best I'm so grateful that I was able to give this talk at this time it means a lot to me I'm super excited to get to know the majority of you over the next two or three decades and I wish you great health and great success thank you so much [Applause] everybody thank you guys

How Voice AI Will Impact Business Decisions in 2020 | Financial Brand Forum Keynote 2019

– 15 years ago, if you
thought it was a good idea to pay strange men to drive around your fourteen-year-old daughter, you would be laughed out of a room. Now, parents are more
comfortable with their daughters going into uber than driving themselves. We are going through major
major consumer shifts. (bright upbeat music) You got your perspective. (bright upbeat music) (audience cheering) Don't you wanna be happy,
don't you wanna be happy? (bright upbeat music) Good morning, I'm really
excited to be here for many different reasons. One, we have a good amount
of time for this keynote so I'm gonna be able
to create some context. Two, I've had the great pleasure, I run a 1000 person marketing agency and Chase Bank has been a
great client for a long time and I've been very close to that account. And even before that, had
worked with a bunch of people in the credit union industry
on their marketing strategies, so I always enjoy when
I have much more context of the day to day. So that's a lot of fun. And three, I had an incredible breakfast with a small group of people
that are in the audience and just the quality of the questions and the vibe in general excite me. So, thank you for having me this morning, thanks for being up. I got in late last night from New York and noticed a bunch of you
were still running around a little bit later. And so the fact that you're
here this morning is impressive. Many different places where I wanna go, one, I'm gonna give you a little
context of how it got here because I'm gonna assume a
lot of you don't know who I am but number two, I think a
great way to start this talk is very simply this. You're about to find out that I grew up in the liquor business and launched one of the first e-commerce wine businesses. So I grew up in an
unbelievably regulated business my entire career. I've had the great privilege of working in the financial sector for
some of the biggest clients in the world over the last half decade. And the thing that
keeps ringing in my mind as I was getting up this morning is, I think in 2019, as we
head into the next decade, I think this needs to be the conference, this needs to be the moment, this needs to be the time
that this collective room starts really putting
their mind in this place where they realize that
using regulation as an excuse to not innovate is not
a sustainable strategy. I think the reality is that
so many people in this sector default into blaming
regulation as an excuse to not learn the new communication portals that matter to our end consumer. I stand here today, and
the reason I started a marketing company a decade
ago was because marketing for me a decade ago after
investing in Facebook and Twitter and Tumblr, after being
an early investor in Uber and being a big better on
Netflix when it went public, I genuinely believed that
there are so many innovations upon us whether it's blockchain,
whether it's peer-to-peer, whether it's online competitors. There's so much innovation
from a business standpoint. It's so difficult for so many
people here to go back home and really rejigger their app or their website to be
lacking the friction needed to compete in a 2020 world, this is like practical
in the trenches stuff. But the one place that is very
practical to begin the battle that is needed for the
companies and organizations here to compete in the next
year let alone next decade, the one place you can adjust quickly is your marketing strategy
and marketing spend. It is hard to go back and rebuild a tech stack infrastructure,
it is much easier to go back and cut your
direct mail budget in half then allocate it somewhere else. This is a very important
time in this industry, it's a very important time in our society. There's a real massive
naivete in the collective of understanding that the
Internet is the middleman and that everybody else is just waiting for their time to be exposed. Books got picked on first
but then along the way, I was saying this morning, just
only six or seven years ago I was in D.C. giving a
keynote to the black car and taxi industry desperately
trying to get them to understand that uber was a problem. And what everybody did in that conference is what everybody does in every industry which is they come up with
the excuses or concepts that they hope the customer wants instead of the reality
of the customers needs. The reality is if you're in this industry and you create any friction
towards a transaction for an end consumer,
they're not interested. We value time. So again back to my investing career, I invested nine years ago in Venmo, right. When I think about the
dynamics that that played out, and that one didn't work out as well 'cause it didn't operate to its success, it's sold early and in branch
tree really made the dollars but the thesis was right. And the reason so many of the things that have happened in my
career have worked out is because I'm blindly consumer centric. Anytime you think about
what's in it for you versus what's in it for the user of you, you're already vulnerable. And I do believe that we are
upon a very important decade of technology innovation
that only building your actual brand will be
able to compete against. We are only a decade away from at scale. So many of our customers
making financial decisions through the Alexa or Google
home or apple pod in their home, and when you understand what
that toll booth looks like, it's gonna make Google
search of the last decade seem like child's play. So let me take a step back
and give you a framework because I actually think
five minutes of context of how I got here will help you understand what I'm about to push that
I think you have to consider. I was born in the former Soviet Union, I came here when I was three years old. It was a super hardcore lifestyle, I mean I lived in a studio apartment, half the size of the stage
that I'm standing on right now with seven family members. My dad got a job as a
stock boy in a liquor store and used to drive from
Queens to New Jersey for two bucks of an hour
which just tells you how cheap gas used to
be, and it was really, it was a hardcore struggle. I went on one family vacation
in my whole childhood we finally moved to Ades in
New Jersey about five or six, four or five years in, six,
five years into America because my dad became the
manager of a liquor store in a town next door. That is where my
entrepreneurial career began. I started a lemonade stand and then, I should be honest here,
I manipulated my friends to stand behind the other five
lemonade stands I created. So I had a six lemonade stand franchise (audience laughing) and for everybody here over the age of 38, you might remember big
wheels, those little things that we used to ride as kids. I used to ride my big wheels
to every one of my locations at the end of the day to collect my cash like I was Tony Soprano or something. (audience laughing) So that's who you have on stage. Actually, now I'm gonna go… I appreciate the laughs, so I'm actually gonna
really bring it to you. Actually, six months before that business, my first actual business was
going into people's yards, ripping their flowers out of their yard, ringing their doorbell and
selling it back to them. So not the proudest year of my life. But I was super entrepreneurial, I'm 43, so I had the benefit of being of the age when baseball cards and
sports cards got really big and was a huge phenomenon. And when I was 12 years
old, at that point, I'd already realized that
I was an entrepreneur even though every other immigrant
was getting straight A's, I was getting D's and F's. My mom is just amazing and
built an enormous self-esteem but she was super frustrated by that part, so she really said that, if
you're not gonna be a student, you're gonna have to learn how to work. So I worked a lot. But you know for me, this was not the golden era of entrepreneurship. Again, depending on what age you are, you know that the 80s and
90s was the college you go to is a direct attribution to how
successful or good you are. So I was making $2,000 to $3,000 a weekend at these malls in New
Jersey yet all my parents my parents' friends,
all my friends' parents and definitely all my teachers told me I was gonna be a loser. I don't know about you guys but when you have $37,000
in cash under your bed when you're 12 years old
and you're not selling weed, you're not gonna be a loser. (audience laughing) That one's for all the parents with D and F students out there. Don't worry guys, it
can work out, it's cool. Anyway, and you know it's
funny, the way I look at school in the modern education system and the way that college is structured
and the debt you have to incur to get a piece of paper
that no longer translates to an actual job that
makes it ROI positive is a lot of the way I think about being a traditional
financial service provider in today's environment
when you're not leaning in to the infrastructure
of the web let alone, and all of you know this
like, the amount of VC funding and private equity money
being put into FinTech and competitors and layers
above and like Cloud… We're not even talking,
forget about Bitcoin or cryptocurrency, we're not even talking about the manifestation
of a mature blockchain. There's so much pressure on
us collectively in the macro, what I'm affected by is
the next part of my story. When I turned 14, my parents said, okay, the baseball card thing is a fad, which they were right about, you need to start working
in the family business. So I went from making $3,000 a weekend to making $2 to $3 an hour bagging ice in the basement of my dad's liquor store. So I call those the Dark Ages, I hated it. My dad ran his liquor store
like the Soviet Union, so his employees didn't
necessarily love him. So the 14 year old son that look nine really took the brunt of that. So it was a tough era but
eventually when I turned 16, I was allowed upstairs
'cause I was relegated to the basement and bagging ice and something amazing happened. I realized that people collected wine. Even though my dad's store was called Shoppers Discount Liquors,
we were in an affluent part of New Jersey, Short Hills,
Millburn, Summit, Livingston. Some dollars in the neighborhood and they would come to the store and they would ask for
these expensive wines. Me being bored, started reading about wine and that connection 'cause I wanted to help my family business made me realize there was something there, a passion. And so by the time I
was 18, no 18 year old should know as much about wine as I did. I was off-the-charts wine book smart. And then I went to school,
freshman year, September 1994, I'm in my dorm room playing Madden 94, dominating by the way, (audience laughing) and my friend runs in and he says, you have to come and see this. At this point, I had already
been really helping my dad, I had a lot of knowledge, I was
a good salesman on the floor and I was gonna open up 800
Shoppers Discount Liquors. I was gonna build the Toys
R Us of liquor stores. It's kind of how I thought
about it as a 17, 18 year old. Now I'm in a dorm room in September of 94 and I get pulled out of
my room and I go look and I see and hear for the first time. For the under 25 under 30 set here, you missed one of the great
rackets in business history. America Online used to
charge three bucks a minute to be on the internet,
though they gave you a CD that gave you eight trillion free hours. It was the first time I saw it, I said something ridiculously stupid like, is this the information superhighway or whatever we called it back then? I had heard of it, but at
this point I'm 18 years old just to put into context,
and I'm sure this resonates with a lot of people in this room, I'd been on a computer
for 20 hours in my life 'cause of classes, it was just not a part of my lexicon or my life. But what happened next
was super interesting. Within an hour of being on the internet, but the first time in my life, I found myself on a bulletin
board selling sports cards and I realized that this was going to be what I was going to do. And so on intuition and just tasting it, I launched one of the first
three e-commerce wine businesses in America, 1996, when I
launched winelibrary.com and rebranded my family's business. This is where it gets important here. My objective here today is to not worry about the macro issues potentially
over the next two decades because for a lot of
executives and operators here you won't be around to
see that play out anyway and that's not practical, and I have no interest
in ideology or futurism, I care about general practicality. I believe the biggest ROI
that I can bring here today is help people under
and alternatives of what they could be spending their money on to communicate to end consumers
to do business with them. That is what I'm passionate
about on everyday basis. I have no emotion, you'll hear me talk about LinkedIn and Facebook and Twitter and YouTube and a bunch
of things in a little bit, I have no emotion to them. I could care less if they spoke in Twitter and YouTube are around tomorrow or not, the only thing I do, and it's not up here, but when you saw my slides earlier, it says I day trade attention. The only thing I care
about on an everyday basis is where is the consumers attention, how much does it cost to get to them and how and what creative do
I need to put in front of them so I can get their business? But I'm not emotional about it. I built my family business this way. I took a business that was
doing $3.8 million in revenue, 10% gross profit, so you can imagine how little money was left for marketing. I took a business that, in
1998 when I left school, and started operating my dad's business on the back of winelibrary.com on the back of email marketing and then on the back of Google AdWords which were the two big
innovations having a website, doing email marketing. How many people here were
doing email marketing in the late 90s, early 2000s? Raise your hands. So for the OGs that
just raised their hands, (audience laughing) do you remember those open rates? I mean I had an email newsletter… How many people have done email
marketing in their career? Raise your hands high. Wait to hear this. In 1998, I had a 200,000 person newsletter that had 91% open rates. (audience laughing) What I know more than the
sun will come up tomorrow is I know that marketers ruin everything. (audience laughing) As a marketer, I ruined email. I remember my email newsletter
when I first innovated, I'm like, maybe I can email people. And so I emailed like 80 people
and we sold way more wine. And then I was like, wait a minute, that didn't cost me anything. Like the catalog that I used
to send out the same to sell, the same stuff cost me a fortune. I remember from 1998 to
2000, sending so much email 'cause I was convinced that eventually we would charge for it. Like it was so remarkable. And I went from emailing once a week to three times a week to five days a week. And then two years later, I
was like people read email on Saturday and Sunday,
so we went to seven. And then I was like, maybe you can send more than one email a day. (audience laughing) Systematically, from 1998 to 2007, I destroyed our email newsletter. (audience laughing) But on the back of that
and on the back of buying all the wine terms on Google
AdWords a day it came out, how many people here have
done Google ad marketing in their lives? So the day came out, it
was five cents a click for about 4/1/2 months before
10 cents became the base. I literally owned every word, from wine to Cabernet, to Merlot. This is where the story of
my career is devastating. I'm very proud that I built
my family liquor business from a 3.8 to a 60 million
dollar business in seven years with no capital, with no VC money. As a matter of fact, and you'll love this, this crowd will love this,
my dad's so old-school, I didn't even know that
credit lines existed. So I built a business
from three to 60 million on making every penny work its ass off. That was email and Google AdWords. That's what I'm gonna
talk to you about today. How do you make every
penny work it's ass off? How do you not, and I think everybody will resonate with this following line, the greatest thing that's
happening in marketing right now is that we put the past on a pedestal and we demonize the current. We put the past on a
pedestal, tried and true. We create bullshit reporting
to justify the spend and then we ask stuff that has real data to prove that it works. That is ludicrous and
that is why we're seeing so many companies lose
market share and decline. It's because the executives
behind that feel comfortable with what got them there
instead of understanding that's exactly what's
gonna make them vulnerable and that you should be
required to continue to up your game and learn new skills and understand how new things… People are like, Gary
but I don't understand how Facebook works! I'm like, figure it out, dick. (audience laughing) Like, isn't that business, like isn't that the merit
of what we're doing here? Like the reality is,
that's what's happening. So I built up that business on the back of those two
platforms, that was my life, that's kind of how I did it. And then a very transcending
moment happened to my career, and then we'll go into tactics. YouTube came out, I'd already
built this huge business and I saw it and I'm
like, this is interesting. It was about four or five months old and I started a wine show
called Wine Library TV. I sat in front of a camera, drank four bottles of wine for 20 minutes (audience laughing) gave my opinions about it and hundreds of thousands of people decided to start watching it. A couple funny things about it, and this is the number one thing, and we just had this at the
table, right before I came here, the reason most people struggle with contemporary digital marketing is because they're in sales mode not providing value and
building brand mode. You're transactional. It's like, what did this
post get me, its CAC and LTV, it's math, it has no brand
or LTV dynamics in it. I was that person. Remember the reason I told you is think about where my DNA
started, rip the flowers, sell it, right, not good. Well, great business models, sat on inventory for no time, high margin (audience laughing) but not good morals. What I thought on February 21st 2006 which is when I first taped
the episode of Wine Library TV, what I thought I was gonna
do was do QVC, right. How many people here grew up
in the New York tri-state area back in the day? How many of you remember Crazy Eddie? I thought I was gonna do
Crazy Eddie Meets QVC. I was gonna be ridiculous in myself and I was gonna sell wine. The camera goes on, this
is literally five seconds, said if you literally go to YouTube and type in Wine Library TV episode one, I can see it, I know myself, I don't know if you'd pick up on it
but somewhere around one minute into the video,
I'm like, wait a minute, this is being recorded and
will be on the internet and will be around forever. I can't sell, I have to
actually give my actual opinion on these wines. And so the reason I became
an internet phenomenon and why it exploded was
I was literally going on the internet every
day, five days a week, to hundreds of thousands of customers and potential customers
and panning the wines that I was selling in
my own store at times. I was being an editorial voice,
not a transactional voice. What that seed created for me is something I wanna talk to you about, but what's really
interesting to this story and how we got here today is YouTube sells to Google for $1.7 billion.. I read an article, I'm super
blown away by that number. I don't know if you guys remember when that transaction
happened, that was 07, like it was a very
different world back then. 1.7 billion feels like a trillion today. It just seemed ludicrous, 90% of the world had never even heard of
YouTube, it was this big thing. And in the article it said,
Angel investor Ron Conway makes X amount of money
on his $25,000 investment, like 25 million dollars,
something ludicrous. And I remember thinking,
man, I've been so right about email and Google
AdWords and now YouTube, I need to become an Angel investor. And in 2007 and 2008,
I started doing that. And the first three
companies I invested in were Facebook, Twitter and Tumblr. So I'm rich (audience laughing) but more importantly than
that is what happened next was instead of becoming
a VC, I mean you guys know this dynamic on the
back of that and uber, like I wasn't rolling. And instead of raising two
or $300 million dollars on a fund, getting two
points, making all that money just to take meetings and
having 20% of the upside which is what most of my
friends did from that era, I decided to build a
20-20 version of Mad Men, client services, shitty
business, terrible yada, makes no sense to all my smart friends. But the reason I did it is
why I find myself here today. I believe there is a gross underestimation on how substantial the
consumer behavior shifts are and are about to be. If you think a lot of things have changed over the last five to
seven years, and they have, in the way we behave, in the way… I mean dating 15 years
ago, if you online dated you were the weirdest nerd
in your mom's basement. Now it is like standard to
swipe left and right 24/7, 365. Our behaviors in our
society, 15 years ago, if you thought it was a
good idea to pay strange men to drive around your
fourteen-year-old daughter, you would be laughed out of a room. Now parents are more
comfortable with their daughters going into uber than driving themselves. We're going through major
major consumer shifts. And all the things that
were tried and true are being pressured by technology. This industry is on the precipice of being disrupted dramatically. Forget about macro technology trends, just on competitors that
look like Amazon and others. It's all coming because
the services continue to be commoditized as
the technology advances. If you play out the chess moves of that, it's the same thing that's
happened in politics, it's the same thing that's
happening in transportation, it's the same thing that's
happening to book stores, the wine industry. What everybody in this room
eventually will realize and I'd be very grateful
to get an email in 35 years and be like huh, I
didn't really believe you but now in hindsight, I'm
surprised how it played out, you were on it. I believe one man's point of view, that if you play out the chess moves of the advancement of
the inn and technology, the only thing we are
all left with is brand. The only thing we were
all left with is brand. And why I decided to build
a client service business and learn marketing was
I was an entrepreneur in Silicon Valley winner
but I knew nothing about fortune 5,000 land. I didn't understand why
the money was being spent the way it was being spent. And I needed to go get my
hands dirty and taste it. And over the last decade, and ironically, today's the 10-year
anniversary of the business my brother AJ and I
started called VaynerMedia, I've learned a ton of stuff most of it is disappointing to be honest, most of the reason money is
spent is political and defense and trying to rise up the ranks. I used to be mad at you, the individuals, now are mad at the system, right, the machine makes people do that. I'm so tired of CEOs and
board members coming up to me and saying, Gary, I so believe in your progressive marketing. I'm like it's practical,
it's not progressive. They're like, your progressive marketing but I can't get my executives
to execute, It's my people… I go, no it's you. Employees are easy. I don't know guys if you've seen this but it works tremendously
well if you're in control. You just change what
people get bonus done. (audience laughing) Yeah, thanks mom. (audience laughing) Like literally I had dinner
with like a fortune 500 CEO the other day and she's
amazing and she's like, I'm just so frustrated,
like I can't get my people! I'm like, good news. Instead of your bullcrap internal MMM or Nielsen brand stuff
lyft or sentiment analysis, all these stuff, like, there's nothing that anybody in this room
is held accountable to from a reporting that
they don't understand that it's deeply flawed
and easily manipulatable. You all know this, right. I mean how many more
meetings do you wanna be in where the reports like
are sentiments tremendous but our business sucks crap. (audience laughing) And so I said to her, I said look. if you so believed in
LinkedIn and Facebook, just change the bonus structure,
just change the rules. Like I have a funny big idea,
I guarantee that your CMO and your brand managers are
gonna spend a lot more money on Facebook if you put a bonus in place that it you hit this much
Facebook spend, you get bonus. So like we have enormous
control to change the game yet people are undereducated. Do you know many people
are here this morning that have massive points of
view on Facebook marketing but have never spent a dollar on Facebook and seen the results of it? We live in a world of headline reading. There are people here of strong
points of view of Facebook, Google, YouTube,
LinkedIn, all these things predicated on headlines. You know many people run
up to me, they're like, Gary what about Cambridge analytical? I'm like, what about it Ron? Ron has no answers. Target and IRS and visa
breaches put out tons of data. What we have is a huge
misunderstanding of what consumers are actually doing. I'm watching the Venmo's
and the Robin Hood's and the rocket mortgages and
the blah blah blah blah blah, draft this and (mumbles), like brands that are built out of nowhere. I know kids that are
building 87 different URLs for nine bucks an hour,
like credit, house income, home.org running Facebook and Google Ads and taking customers and making
margin on being referred. Like the consumers attention
is very clear, it's this. You may not like that it's this. You as a human Karen and
Rick, you might not like that at dinner your kids
on the iPad the whole time. Two things of that, take the
iPad away and stop complaining, two, it's the consumer,
you don't get to pick. Watching people make executive decisions on how they wish the world was versus what the actual customer is doing is one of the most fascinating
things to me of all time. Like I literally had a meeting
three or four years ago where the guy was like Gary, I hear you on this Instagram thing but I gotta be honest with
you, I just don't get it. And I go, that's cool John but you're a 68 year old old white dude and currently the people that
use it are 16 to 24 year olds. I don't know if you remember
during this breakfast but you're the CEO of a company that sells to 16 to 24 year old women. This dynamic is amazing,
the amount of companies in this room that have not taken the leap into contemporary marketing is fascinating and it is completely
predicated on one to do things in this room, it's very simple. It's just the truth for the
majority, not everybody, it's either A, the internal machine doesn't score it positively and that head of marketing CMO or VP or whatever it may be doesn't
want to fight the system and conforms even though she
or he doesn't believe in print or radio or outdoor or
whatever else commercials, they do it because that's
what the Machine accepts and there's no reason after
15 years of great work for them to make themselves
vulnerable to fight that fight and so they just conform or
be if they have the autonomy, they're not comfortable
in these new environments because they haven't been
practitioners of it themselves and they're not sure or see
they've run some Facebook or Google or YouTube ads
and it wasn't successful and on a small test they decided the whole thing doesn't work. The ROI of anything is predicated based on how good you are at it. How many people here are familiar with Wish, the shopping app? Raise your hands high. How many people have never heard of it? Raise your hands high
which I'm gonna assume… Do me a favor, let's like make a rule 'cause we're about to do some Q and A two rules this morning; No half-ass hands. (audience laughing) And two, there's no judgment here, it's just data for each of us, like there's no reason to hear of Wish. I know if I'm asking it or like oh, I don't wanna be not in the know. So real quick, one more time, high, how many people have heard
of Wish the shopping app? Look around everyone just to get a sense. Great, that's a lot actually now. Put your hands down. How many people have not ever heard of it? Raise your hands high. Appreciate it, thank you. So Wish, depending on
who you believe is doing between six conservatively
and $12 billion in revenue. It's a shopping app, they
spend all their money on Facebook ads, 95%. The only things they've really done that maybe you've seen is they have the patch on the Lakers Jersey and during the MacGregor Mayweather fight, they had the logo in the corners and in the middle of the ring. 12 billion, nine, six, at this point somatically doesn't matter,
it's probably one of the only potential long-term competitors of Amazon, yet most people still don't know it exists because the way they did marketing was under-priced attention in Facebook. The disproportionate. I promise you if everybody
here knew how to do it, there's a lot of nuances and
we'll get into some Q and A but if everybody knew how to do it, five mile radius of your branches, using the data to find your prospects, if everybody here really knew how to be a modern-day
Facebook and LinkedIn marketer, your business would be
dramatically different. There is no radio or local television or outdoor or direct mail campaign that fires better than those two places when you understand creatively what to do. The flexibility of these
platforms to put content out that resonates with the end consumer 'cause you're targeting
people of certain incomes or certain genders or
things of that nature is just too remarkable to
overcome for the other platforms that require vanilla. Your direct mail eight-by-twelve is the same picture to everybody, that same message you're
trying to get across of why your branch is so
awesome just a mile away needs 39 different pictures and videos to 39 different segments psychographically and demographically on Facebook. That's why it converts. If you make one video or
picture on a five mile radius, it acts more like direct mail and radio. This is about knowing. Guys, ROI of having the skill. The ROI of a basketball for LeBron James is going to be over a billion dollars. For me it's negative 3,000, I've torn both of my meniscus. To me, that's the punchline. So what I'm passionate
about is getting this room to understand that they
need to figure out something that is practical to become
a modern-day marketer. For example, let's talk
about underpriced attention. These are platforms that I believe if you spend money on are a better deal than if you spent it somewhere else, then the words of the videos become the variable if it's successful. Number one, podcasts. How many people here are
actively listening to podcast? Raise your hand. Actually, you know what, do
me a favor that's important. If you listen to a podcast, and it could be many
different one or the same one, if you listen to a
podcast most of the week, like two or three times
a week or more stand-up. Just do me a favor, let's
get the blood flow going. Stand up if you are actively
listening to podcasts. We're talking about 60 (mumbles)
maybe that's a little weak. All right, thank you, you can sit down. For me one of the most interesting places to market right now is podcast. If you're a bigger brand in the room 'cause obviously some aren't,
but if you're a bigger brand buying pre-roll I've read
podcasts right now on shows that you think hit your demographic or potentially as narrow
as financial shows as broad as something that might be
considered high net worth if you're looking for that
world, whatever it may be, you've got to make those decisions. But I will tell you this, there's a great misunderstanding right now of the worth of pre-roll podcasts because the data isn't clear yet of how many people are
listening or watching, Apple is not really reporting yet. In that youth, in that blurriness, what I always deploy is common sense. I know people are listening
to podcasts at scale, I know that the companies that
have been actively marketing on podcasts the last two years, MailChimp, things of that nature are growing on it, on the Seth Rogen Show,
they're growing dramatically. One of the things that as you
can imagine as a street kid from an immigrant family, one of the great devastating
things that has happened in our society and this is
based on 70 years of prosperity, we have eliminated common
sense from our businesses. Do you know me people here live their life as a human one way but
then as soon as they go into the office say
completely different things about their marketing? Who here can't wait to
leave Vegas, run home and carefully go through
their direct mail? (audience laughing) Guys, I mainly work with
fortune 500s, the Budweiser, actually, how many people here happen to see the Dwyane Wade Budweiser video that made everybody cry? Raise your hands. So I appreciate that. So that's a bigger media execution that we're super proud of. What I'm Way more proud of is
more than any Super Bowl ad or anything else they've
done on television the sales of Budweiser in
Miami and ironically Chicago where he's from and he
played for a few minutes have exploded, right. I mean a lot of people saw
it, the costs were much less. And here's where it gets crazy, we didn't even have to spend on Facebook and YouTube that heavily because when you make great
content it travels itself. There is no commercial on
television or newspaper ad or cold call that goes viral. There's no taking that and passing it on. As all of you know word-of-mouth
is the foundational thing to business and that is the great thing… Social media in our society today and it's something I've been
talking about for a decade, I am not naive or unaware
of where everybody wants to position it. It's because Americans don't like to be held accountable for anything. So when the banking crisis happens, it was your guy's fault, right, not me even though I
was a $100,000 in debt making $87,000 a year and
thought it was a good idea to buy a $537,000 home. In a decade, we're gonna
blame colleges for collapsing 'cause all the college debt, but it's not gonna be our fault for not being self-aware and understanding that $80,000 in debt for a piece of paper that doesn't get you a job is a bad deal. So that is what I spend a lot of time, our inability to be held accountable. And so I just think it's
a very interesting time in marketing, I highly
recommend looking at podcast. Number two, LinkedIn. LinkedIn is gonna feel
natural for this crowd 'cause it feels more mature,
older, you know, great. I'm thrilled, if you follow
my content for last 10 years, especially my last book, I
didn't even have a LinkedIn, I had a chapter on every platform. I didn't put LinkedIn in it
'cause it was so irrelevant. Only 24 months ago, for a
niche group of B2B businesses, there was a way to go. Over the last 24 months, it is transformed into a content platform for
all shapes and sizes business. I've pushed fitness experts
to go put out LinkedIn content of like three tips when you travel, it's become literally
Facebook seven eight years ago where the organic reach of your content can go much further than you can imagine. I genuinely believe that
every bank, credit union and financial advisor
if they're building up a personal brand in here needs to have a very significant LinkedIn strategy but the content that comes
out has to bring value. You need to think of
yourself as Bloomberg, you need to think of yourself
as the New York Times, you need to think of yourself as Fox News, you need to think of yourself as content, not as a salesperson. You need to put out content
that builds awareness and brings value to somebody in ideas that you should be thinking
about when buying a home. Six ways to hack a business loan, things that actually
bring value to people. You can do that now, as
you think about your team and your agency partners, you
have to become very self-aware you need to think about
a couple of things. Number one, you absolutely have to think about how do you communicate best? I do it through video and
then I strip the video and make audio and that's
how I do my podcast, but I'm not a great writer. So I get interviewed by my writer and then it becomes first person. Not everybody has to do everything best but you do have to be self aware of how you communicate
to your end consumer. The written word, voice
and video have always been and will always be the three platforms. You have to decide how your organization is going to do that best. The other thing is you
have to audit the people that are executing this. How many people here work
with outside agency partners? Raise your hands. Great, this is a big
one, this is a big one. Now that I've been in the
industry for the last 10 years, one of the things that has
been very obvious to me is that most agencies are incentivized to make their own margin which means by nature being a client service provider has a disconnect of misaligned interest. A lot of the advice you're getting and the reports that justify it right now are completely predicated
on that agency's margins. The reason that television
and programmatic digital continued to be the beacons
for the biggest companies in the world is because
that's where all the margin is for the biggest media
agencies in the world. And even for small shops, they will always reverse
engineer to their biggest margin. Because I built VaynerMedia for myself because my long-term plan, I
didn't mention this earlier, with my agency was not only
to learn but it was also to take advantage of the
next economic downturn because I believe everybody's
so grossly over leveraged because we didn't properly
pay the piper in 2009 that I believe that there's gonna be some significantly
great deals to be bought when the world melts. And earlier that whole rich thing… How many people here are
immigrants or kids of immigrants? Raise your hands. So for the small hands that went up, immigrants have figured out
a really interesting trick, it's called Sit on Cash. And it's funny, my
financial advisors and I have a lot of friction because
I do very high risk investing and then I send them way too
much cash for their liking but my point is I'm gonna
make that cash work for me, I'm patient, I'm gonna wait for
the next economy to collapse and when that happens all
of a sudden $4 million acts like 16, $16 million acts like 160. There is no compounding
value on the market or anything else that
makes it work that way if that's what I wanna do with my money. So I think that there's a
really interesting thing of why my agency's been
able to figure it out is 'cause I'm building it for myself to buy things and run it through. This is how I figured
out, why was everybody giving such bad advice. Guys, if your company is
buying a banner ad on a website that is mainly seen on a
desktop, not on a phone, below the fold, you
can't waste money faster. There's not a… Please if you do any… As a matter of fact, leave now. Leave the conference, leave my talk, go back to the office and stop any cent spent on banner ads on
websites, it is a literal joke. As much as I hate television commercials 'cause watch this, watch this. Not 16 year old crowd, you ready? Watch this, by show of hands,
how many people here now mainly watch when they watch
television Netflix, Hulu, Amazon or HBO or when
it's on video on demand and you fast-forward commercials? Raise your hands,
Netflix, raise them high. Keep them up, I want
everybody in the front in these fancy couches to look back. Look at this. (audience laughing) Keep them up for a second. Can we all agree that
the majority of people in this audience aren't
14 year old teenage girls. This audience almost 95% of you don't even have a chance
of seeing a commercial. Forget about if you consumed it and got inspired to do business, 95% of this older crowd
is not even got a prayer of seeing an actual television
commercial $60 billion spent to make you buy things in America
on television commercials. Then you've got digital
banner ads, nobody… Who here does click the banner ad? (audience laughing) Can somebody raise your… The only banner ads you click are once I went to your website,
you got me in the funnel, you re-targeted me and then you annoyed the living shit out of
me to buy those socks or take that mortgage
and then I clicked it. It is not a consideration funnel, it is a retention and retargeting funnel. We are broken in marketing in 2019. The reason the Toys R Us is
in the sears of the world and you'll see it every
single day in every market, it's coming guys, it's coming. And honestly it's actually here. And you know what I'm most worried about? How much damn margin and how profitable the companies in this room actually are. The biggest thing that I struggled to push a new agenda in marketing is the current results of businesses. When I spoke the Toys
R Us eight years ago, they were thrilled with their business. They didn't wanna hear it. This is what happens every time. The only audience I'm worried about when I go pitch a new client or speak here is one that is currently
successful, that's what happens. Things are always good before they're bad. And so I just don't
understand the following. If you believe 50% of what I'm saying, the reason I started a marketing company not a build a technology company is because it's the easiest
thing to change, it just is. You can go home and change it, you can. And I think the days of like, I mean… I literally have clients
that are spending more money on outdoor billboards than they are in Facebook and Instagram. I don't know if you guys, when
you leave this conference, can you please just look at everybody who's driving on the highway. Let me promise you this,
every single person that's a passenger is
looking at their phone. So I think we can all
agree in 2019 versus 1999, billboards should not
have gone up in price. At least half the audience has been eliminated from seeing it. The scarier part when you
look at people driving, if you happen to do
this which is what I do, is half the people driving
are looking at their phone. (audience laughing) You guys are scary out there. We are not deploying common-sense behavior against what's actually
happening with our consumers and that is why we were
becoming long-term vulnerable. Now let's go into you're
buying in, fine Gary, I'll call your bluff. Let's talk about YouTube real quick. One of the greatest ad
products in the world today is a specific product that
YouTube has which allows you to target people who
searched on Google something and then go to youtube to watch something completely different. They searched for a
mortgage or a loan or a bank or whatever on Google and
then three days later, they go to watch a UFC clip on YouTube, they go watch a ski clip. But the pre-roll is you,
before they watch that, they literally type in,
looking to borrow some money and literally your pre-roll
before their ski video is, hey, are you looking to borrow some money? And they're like, holy
shit, how'd you know? (audience laughing) It's an incredible product, I highly recommend you look at it. The key though is it's very
hard to make a compelling video that gets somebody excited. This is one big game. Once you get into the framework of understanding how underpriced
the digital landscapes, certain digital landscape products are, the game that you're gonna
get caught in to is content. A lot of people are here
spending a lot of time thinking about their media agency but they're not spending time thinking about the content they put in there. The most important word in
today's digital centric world of marketing is context. This is one big game of
having enough content to match the 30 to 80
different psychographic and demographic cohorts
that are potentially doing business with you. This is a very big deal. What we have not committed to
in our industry of marketing is spending enough money
or spending money properly to make enough pieces of content. It is remarkable for me to watch early-stage startup companies out market much bigger companies because they don't know any better because they're just
living in an Instagram, Facebook, YouTube world. You will be blown away what happens when you put a Asian-American
in the picture or video and then target Asian-Americans
with the same message and then run a separate ad with an African-American female in it and you run it against
African-American females in a five-mile radius then
an African-American male, 18 to 21, gets a different
message than 58 to 63, then income levels. There is a graph, a framework of 40 to 70 significant segmentations in our society. And then not to mention the subtle nuances of your neighborhood. I'll give you a weird one, if you mark it in a certain
part of Illinois and Wisconsin, like if you use Packer lingo
vs. Bear lingo or vice versa, the conversions on your
sales are ludicrous and through the roof. If you're a national brand… Look, I think we all know
what the political climate, there are clearly two very
different points of view on the current state of America, your marketing needs to reflect that. People value different things, we understand that in our social issues but as marketers we're trying
to sell vanilla to everybody. This is one big game of content that's contextual to the platform. LinkedIn organic content,
you need to start an editorial like capability
in your organization. Facebook, you could hate it, you could think Zack is the worst, you could think the Russians, you can think anything you want but when you're in business, you start realizing a lot of things. Here's my favorite thing. Everybody's out there
saying, screw you Facebook and they're posting that on Instagram. (audience laughing) Headline readers versus practitioners. People like to play hero on social media but then don't back up their actions. Their actions are very clear. Right this second, Facebook
is the single best place to market in the world because people are still not pouring
enough money on the platform because they're making emotional decisions versus practical business decisions. I could care less about Facebook, I have way more Snapchat
and Pinterest stack, things that I don't
believe are doing as well. I wanna be historically correct
and I will stand up here in 10 years and say,
you're still running ads on Facebook and Instagram? They're overpriced. What's great about Google
and Facebook and Instagram and Snapchat for that
matter and Pinterest, is it's a marketplace. Ads start at a penny, and
then supply and demand for that attention goes up. What's terrible about print
and radio and direct mail is there dying mediums, they're not dead, they're not doing as well as they used to and you're paying the premium. They keep raising prices,
that's a macro number you might be locally doing
but that's fine, I don't know, this is interesting to me as business operator spending money. We have such a passion for the past that we're willing to
overpay for something we know doesn't work in lieu of something that's staring us in the face. and then we make fun
of Venmo or Robin Hood, Rock and More, AZebra. We make fun of these
things, we say these things and they're marketing a
completely different way and they're growing by the second. You're making fun of them
because you're not on their team. The second you quit this
job and go work for them, you're gonna sing its praises,
you have vested interest. It's like how I talked about
the Patriots, I hate them. They're cheaters, they're the worst, I hate everything, I hope
they all die them, fuck them. (audience laughing) I'm a Jets fan, that's how I roll. But that's sports,
that's me talking sports, that's not real life. You're doing that in real life, you're making real life decisions based on not being on a certain team. Guys, this has happened. You're not gonna get a
$100 million infusion into your tech stack, rebuild
your app and your website to create less friction
tomorrow but what you can do is take a real step back and really start auditing every penny that you spent. There's no reason to waste money because what I'm most
worried about is voice. I will tell you it right now, I'm putting this on the record. Caleb, where are you? Caleb, I film all my content, I like being historically correct. How many people here
follow me on Instagram? A couple, thank you. You can see in the last six months I've been doing the recall videos. Stuff I said in 11 that became true, this is my currency over everything, so I love speaking for me,
could care less about me, the crowd, one thing, the truth. The current state of the truth. I don't sit up here and predict, everything you've heard in my mouth, it's things I've already seen happen. This is not guessing,
this is not futurist, this is not hoping. This is everyday being a practitioner spending a billion dollars in ad money between my own agency and the
startups I'm involved with and my own companies and
watching how it all plays. By the way, one of the weird things to throw you for a loop,
I think the Superbowl is the number one thing everybody here should run in marketing. I think the Superbowl is the most underpriced move in marketing. Everybody in America will
know what you're up to whether they watch it on
YouTube or during the game. Another weird one, I'm starting
to really pay attention to the collapsing prices
of Drive Time Radio, right. Everybody's listening to
podcasts and Spotify, I get that. To me it's not growing, I
just care if it's a good deal. By the way I'll buy a million
television commercials next year if they drop
their prices by 85%. So for me I just really I'm desperate for everybody to
understand how real this is because I've now lived more
than two decades of business, have yelled about this is gonna happen, this is gonna happen! People don't take it seriously
or not incentivized to or to care less or… And it's tougher for employees. Back to when I used to
do it with entrepreneurs, it was their family
business, that made sense. It's hard for you to fight a machine that you don't even own, I get it. But I will say this, and this is probably the single best thing I
can say in a room like this for the future of your career; The number one thing I am passionate about is for everybody in this
room to consider the value and the ROI of (mumbles),
for dying on your own sword. That was amazing that it went out, right, when I was about… (audience laughing) That was so amazing. If you guys were doing that in the back, that was unbelievable,
big shout out to them. The number one thing that
I wish for all of you is when you're sitting in a
meeting with senior executives or your marketing team or your agencies and you're talking about marketing, if you have an opinion
that you believe in, not because I said it, because
you actually went home, you know, if you're… How many people here are senior
marketers in their company? Raise your hands. For all of you that just raised your hand, if you don't go home and
spend 200 bucks on Facebook to try to sell something
that's sitting in your basement on Facebook marketplace,
it would be a huge mistake. You can't have opinions about
something you don't know. You must be a practitioner, please. So let me get to the point. If you're in a meeting tomorrow, next week and we're talking about
Facebook or Instagram or radio or television or
print and you have an opinion that's different than what
you as the professional is going along with, the ROI
of you voicing that opinion is that everybody else knows you said it. And it might not be valuable today but when everything hits
the fan, and it will, in three or four years, the people that were historically correct
will get the first jobs. That's real life. I've watched for too
long over the last decade friends of mine pander to the
companies that they worked in on things they didn't believe
only then to feel the wrath when the company got hurt and
they didn't have the resume of articulating their
truth to protect them and so they lost twice. If nothing else, if
nothing else this morning, please in meetings talk about
what you actually believe in instead of what's convenient
for the short term because the haves and
have-nots of marketing are becoming very clear. The stakes are very high. Let me bounce here for
a couple more minutes while I've got it. One thing to really understand and why so many people are
struggling with marketing today is this is the greatest
era of math and art being equal partners. Way too many marketers today
either run too much quant or they run too much art. This world too much quant,
math math math, right, way too much, not building brand which is why voice is gonna be a problem. Voice is gonna be a problem
because everything we now do on our mobile phone over
the next decade or two, an enormous percentage of that activity is going to go to voice
devices because it's faster. The only thing we value is speed. We give up… There is no privacy concerns in America, we prove it every day, we don't care. We care about convenience, we like time, we like lack of friction. It is faster for me to say, hey Alexa, I'll take two burgers and a fries than it is to find my phone
go to Seamless and order it. Many more transactions. I grew up as a kid that was told nobody would buy wine on the internet, that nobody would buy
tomatoes on the internet, that nobody would buy
a car on the internet. We buy all things on the internet. The Internet is real
life, this is fake life. And so please understand the
reason I'm pushing brand, the reason the Dwyane Wade thing mattered is 'cause building brand is
going to be the difference between somebody saying
Alexa, send me a case of beer and Alexa send me Budweiser. That is going to be everything
in the next frontier and if you're a young executive… How many people here are retiring
within the next 10 years? And I don't mean that
you're gonna crush it and go buy a plane, (audience laughing) I mean you're old and
you're kind of finished. (audience laughing) Great, great, okay. So for 9% of this
audience, I will say this; Nothing I'm saying is
futurist, it all matters now, but obviously as you can imagine for the other 91%
percent of this audience, a decade from now, let me remind you that almost nothing we
talk about today existed a decade and a half ago, nothing, nothing. This is gonna compoundly grow, it's gonna get way crazier and scarier if you don't like this stuff and I desperately need you
to understand that the, and this is actions over words, in a world where I could
have gone the VC route and had a lot of easy life and lived it, I wanted to build a marketing machine to take advantage of how big this is because I believe that
everything in our society is predicated on communicating, it's why dictators take over the press when they first have a coup. Communication matters, and we are living through the transition of communication. We have gone from a radio first world to a television first world, we now actively live in a
mobile device world first. That's just where we are. And when you look at the mobile phone, the far majority of
activity besides gaming and entertainment is on social networks. If your business does not
know how to communicate on those seven to 10 platforms, every day your relevance
of brand is declining. This is very important. This is not ha ha ha fun,
this is massively disruptive. And the naivete that I've
seen from governments and politicians and other big
companies in different sectors is happening here right
now in this industry, I have a first view at it. It's why I love working
with Chase so much. Kristen Lemcke was one
of the most progressive thoughtful CMOS period that I work with, let alone in this sector, pushing the envelope
around relevance of brand whether it's Sarena and Curry for that kind of cultural stuff, whether it's the tactics of eliminating, all those banner ads that we used to buy. She's on it, sharp as a tack. And she's in an ivory tower at the biggest companies in the world. Many people here are in the trenches should know can absolutely do this. I think you need to have a call in arms, this has to be the morning, we have to scrutinize
the money we're spending, we have to scrutinize the reports that we are held accountable
that everybody here knows don't actually match to
the reality of our business and we have to put pressure
on the most senior executives that sit on boards and C-suites that pontificate about
the past or asking for ROI within a minute of the spend because all those behaviors
that I just mentioned are the singular reason
that great companies that make tons of profit
wake up seven years later and are no longer in business. Please, please heed this, it's coming 'cause it's
already here, thank you. (audience applauding) (bright upbeat music)