Click here to close now.

Welcome!

Java Authors: Liz McMillan, Carmen Gonzalez, Pat Romanski, Blue Box Blog, Jnan Dash

Blog Feed Post

Code Halos Strategies, Retailing and Digital Disruption

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

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

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

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

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

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

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

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

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

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

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

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

************************************************************************
Kevin Benedict
Writer, Speaker, Editor
Senior Analyst, Digital Transformation, EBA, Center for the Future of Work Cognizant
View my profile on LinkedIn
Learn about mobile strategies at MobileEnterpriseStrategies.com
Follow me on Twitter @krbenedict
Join the Linkedin Group Strategic Enterprise Mobility
Join the Google+ Community Mobile Enterprise Strategies
Recommended Strategy Book Code Halos
Recommended iPad App Code Halos for iPads

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

Read the original blog entry...

More Stories By Kevin Benedict

Kevin Benedict is the Senior Analyst for Digital Transformation at Cognizant, a writer, speaker and SAP Mentor Alumnus. Follow him on Twitter @krbenedict. He is a popular speaker around the world on the topic of digital transformation and enterprise mobility. He maintains a busy schedule researching, writing and speaking at events in North America, Asia and Europe. He has over 25 years of experience working in the enterprise IT solutions industry.

@ThingsExpo Stories
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
SYS-CON Events announced today that BroadSoft, the leading global provider of Unified Communications and Collaboration (UCC) services to operators worldwide, has been named “Gold Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. BroadSoft is the leading provider of software and services that enable mobile, fixed-line and cable service providers to offer Unified Communications over their Internet Protocol networks. The Company’s core communications platform enables the delivery of a range of enterprise and consumer calling...
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
What exactly is a cognitive application? In her session at 16th Cloud Expo, Ashley Hathaway, Product Manager at IBM Watson, will look at the services being offered by the IBM Watson Developer Cloud and what that means for developers and Big Data. She'll explore how IBM Watson and its partnerships will continue to grow and help define what it means to be a cognitive service, as well as take a look at the offerings on Bluemix. She will also check out how Watson and the Alchemy API team up to offer disruptive APIs to developers.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...