Bringing the store experience to fulfillment…close…but still long way to go.

I finally broke down and recently decided to upgrade for my iPhone. Side note, a few years ago, when the newest generation of iPhone was available it was treated like Christmas morning by some of us Apple fans. Some of us would literally wait online until the magic hour when you could pre-order the new version. Today, it is a non event. I will upgrade when I get to it, type event. For me, I finally broke down and upgraded after seeing the new phone at the Apple store, demonstrates the importance of a brick and mortar presence! Granted that pushed me to action, but I wasn’t as excited about it as in the past. But this post isn’t about the changes in behavior with getting a new iPhone. What this latest saga of upgrading my phone has provided an example of trying to bring greater experience to the fulfillment process. And how much we still have to learn.

Dreaming of the pacific…

Let’s set up the situation. My carrier is AT&T, I went through their portal to upgrade my phone. I went through the configuration – I went with the Pacific Blue option with 256 GB of memory. I selected my payment plan and then was told item could be delivered later in the week. Perfect. At least I thought. What happened next is a good effort by AT&T…but falls a little short. I was told that a customer representative would show up between 2-4 on Thursday, and spend 30 minutes with me. Hmmmm. Their tag line “we are bringing the store to you.” Makes perfect sense. I have been preaching the importance of making fulfillment a key part of the experience. Looking to replicate the in store experience at the last mile is a great example of this. However when it comes to the execution there remains much to be desired. While I appreciated the service, all I wanted was for the phone to be delivered to my address. I did not need to have a 30 minute tutorial on how to switch my phone. I realize I am not a millennial or a Gen Zer, but I can still switch my phone on my own, thank you very much. Additionally, I was told I would have to show ID and credit card…really? Are they delivering the Excelsior diamond to me? Finally they showed up, I was in the middle of all day meetings, couldn’t reach me and didn’t deliver the phone (mind you there is a perfectly safe location where packages are delivered every day). This started a cacophony of emails and messages from AT&T and their delivery service to try and reschedule the delivery. I also called AT&T customer service (the chatbot wasn’t working). Through all this communications gymnastics, I still don’t know when the phone will be delivered.

So what are some lessons from this awkward dance I am having with AT&T?

• Figure out how to bring added value to fulfillment: Clearly AT&T is trying to add value to the last mile fulfillment. But it is not one size fits all experience – some customers might want to be walked through the process of switching phones, others, like me, do not require this service. Make it an option. What about other value added services such as taking an old phone and recycling it? Could AT&T even offer to take back other small electronics for recycling or refurbishing? Headphones, chargers, tablets or even laptops that have accumulated in our homes. I appreciate the effort to add value added services to the delivery, but you must make sure that each customer truly desires and sees value in what you are offering. It cannot be a one size fits all.
• Communication is crucial: Like with many things in life, being able to communicate clearly is paramount. I appreciate AT&T and their efforts to communicate, however it has been disjointed and confusing. Between text messages from the delivery service, emails from AT&T, emails from the third party and a telegraph from Alexander Graham Bell, it has been clear as mud with regards to what next steps are. Even on the web site there is no clarity as to when delivery will be made. Have one central location to communicate – a centralized web location – so customers have a visual source of the truth. Any email or text message can always refer back to the location. If Fedex and UPS can do this, why can’t AT&T?
• Provide customers options…at the point of commerce: I realize that the goal is to simplify and reduce friction at the point of sale, so suggesting you ask for more decisions to be made might be counter intuitive. However, when it comes to decisions on delivery times and value added services at delivery, these are crucial variables that consumers will see value in. More importantly they impact the overall experience and need to be properly offered and accepted by the retailer before the “buy” button is pressed. I had no idea that I was getting a 30 minute session with delivery. I also did not realize having this service impacted delivery times. These need to be clearly explained and offered before the purchase is made. I am all for providing value added services tied to fulfillment, but you need to make sure your customer is aware of the offering, understands the value and is allowed to make a choice as to whether or not to leverage these options.

So I will see when this Pacific Blue iPhone arrives. Maybe 5 years ago I would have been more worked up about the delay and not having my new toy….errrrr…device as soon as possible. Today I just focus on the break down in the delivery and the effort by AT&T to make this a more valued experience. A for effort, no grade yet for execution.

New iPhone reminds us of the rise of mobility in supply chain

Later tonight we will be reminded about the power of Apple and consumers’ apparent insatiable desire for new devices (consumers can pre-order the new iPhone). But this is not a post about the iPhone 6 and whether or not I should get the 6 or the 6 phablet…instead this is a reminder about the rise of mobility within supply chains.

Not too long ago, when Apple introduced the iPad it was viewed, rightfully, as a revolutionary consumer device. A device that would threaten the laptop market. Which it has. An unintended consequence was the iPad becoming a device that found its way onto the manufacturing floor, truck fleets, warehouses and other parts of the supply chain. Tablets gave workers on the floor a simple, mobile and connected interface with the necessary systems to allow the factory to run effectively and efficiently. Companies like GE’s Energy Storage have been leveraging tablets on their factory floor to reduce the alerting time when outages occur. Rather than having floor managers monitor everything from a central control center, they now have that computation power and communications in a portable device. Truck fleets have adopted the usage of tablets to bring more intelligence and connectivity to their vehicles. Of course none of this is a bad thing for the likes of Apple, Google, Samsung or other players in the mobile device ecosystem.

Tablets have also become a vital cog when it comes to how supply chain solution providers such as Llamasoft and JDA, offer their customers access to their offerings. Allowing for greater access to their software solutions – anywhere and anytime.

But is the world of mobility limited to tablets and smart phones? Absolutely not. On the contrary, the rise of wearables is the next wave of mobility in the supply chain.  I remember walking the floor a few years ago at CSCMP’s annual event and seeing a number of companies displaying their devices – gloves, headware and other wearables – that would bring more efficiencies to supply chains. Many of these had to do with ensuring factory workers or those who pick and pack in the warehouse were as efficient as they could be. The problem is many of these devices were bulky and quite unwieldy. But similar to the adoption of consumer based tablets by companies, look for consumer wearbles to find their way onto the factory floor, warehouse and other environments. Let’s face it, consumer focused companies tend to make more aesthetically pleasing mobile devices, both in form and function.

For supply chain practitioners, do not hesitate to look to consumer device providers for your mobile needs. While there will be industry specific providers of devices, you might be able to find what you need from the likes of Apple or Samsung. Device manufacturers could consider these potential other uses, but in truth they should just focus on their primary targets – the consumer. Technology players must take into consideration what this growth in mobility for the supply chain means for them. Not only might they be asked to created apps for the devices, but how else can they take advantage of the increase in mobile and connected computing power?

New sleek gadgets like smart watches, clothing with senors, smarter tablets and phones are not only exploding in the consumer space but also for your supply chain. Interesting times we live in. Now I have to get back in line for my new iPhone.

Time Warner and Comcast come together – merger of dinosaurs

Comcast will drop $45.2 billion for Time Warner. Wow. That is a lot of cake. It is expected that that the deal will be approved. Although it might not have been a decade ago. But how things have changed when it comes to this industry.

It is coincidental that the other day I was watching an early Seinfeld episode where Kramer convinced Jerry to get illegal cable – since the Mets would be on cable 70 times that season. But would Jerry need cable today? He could stream the audio through Sirius or get the television broadcast through MLB.com. If Jerry wanted to watch HBO or Cinemax he could sign up online, get the app and then stream it directly to his tablet, smart phone or laptop. Oh and if he went out and got a Chromecast or Apple TV device, he can just send the signal directly to his 60 inch LCD television and watch on the big screen. Need to watch some Winter Olympics from Sochi? Stream that heated Russia vs China curling match directly through the NBC sports app. Need a recap of the day in sports? Flip over to your ESPN app and watch Sportscenter. If Jerry wanted to watch “Rochelle Rochelle” he can probably find it either on Netflix or on Amazon direct. All this…without having to go through the cable companies.

Cable companies still have the advantage of being in many of our homes, right there next to the TV. Most consumers are very familiar and comfortable with the set top box – DVR function, pay per view and content. But the are fighting a defensive battle, trying to protect what they have as they are being assaulted from multiple angles. The ability to cut the cable and still get your fix is easier and easier – click here for such a plan.

Good luck to Comcast and Time Warner. That is a lot of capital to grow your empire. But could this be similar to the expansion of the Ottoman empire in the 1900s, looks impressive on paper, but fundamentally flawed.

The end is near…you were once great Blackberry

No surprise, the vultures are already circling Blackberry and looking to recruit some of their top talent. The likes of Apple and Intel are starting to make overtures to Blackberry workers.

This cannot be a surprise to anyone. After the Waterloo based company

Back when it was the cool phone…

announced intentions to being acquired by Fairfax things have continued be out of sorts. With rumors that the financing might not be in place. There is talk of Blackberry heading to the chop shop and having their parts sold off. Something this blog has advocated to happen. Click here for post. It is interesting that the likes of SAP are looking into opportunities. If SAP were to get some of their enterprise assets it would be a very interesting asset for the package application giant. Being able to instantly have a powerful and secure mobile platform could be the catalyst for some of SAP’s solutions.  Something to watch.

It is sad to watch, but the end of days seem very close for the once powerful mobile player. I might need to dust off my old Blackberry, wonder what it will fetch on eBay from the collectors!

Windows of change at MSFT – Ballmer announces his retirement

So the winds of change, or should I saw the Windows, of change are coming to Microsoft. Today Steve Ballmer, bombastic and often demonized, CEO of the software giant will be leaving once his successor is found. Clearly the changing of the guard at the technology giant.

As Ballmer points out in his internal memo (see below), he points to some

After hearing that the Surface and Bing weren’t doing so well

impressive statistics of the company when he started and how he is leaving it. Of course he isn’t the only driving force behind this…a certain Bill Gates also has a few finger prints on this success.

Many who have been in the technology world have their opinions on the MSFT CEO. In a nutshell, to me he was an arrogant and pompous blow hard who thought he was the greatest thing since sliced bread. Then again are those characteristics so foreign for someone running one of the largest and most dominate brands in business? From what I have heard, from anecdotes, he appears to have been an inspiration to some of his employees, wasn’t a tyrant (for the most part) and was able to guide Microsoft effectively enough to maintain its lofty status. So net net I would say he was a good CEO for Microsoft. Did he make mistakes and miss opportunities? Of course. But which leader bats 1.000? None.

So now what for Microsoft?

• Bring in a CEO from outside. Ballmer had been there for a long long long time. Get some fresh blood.  It does not necessarily have to be a tech giant either…why? Because…
• This is a great time to “break” up the band. Microsoft, and it sounds like they are moving in that direction, is shifting focus. Well take the opportunity to bite the bullet. Does not mean sell off parts, but rather start managing MSFT much like a GE. Have separate and autonomous divisions that might have nothing to do with one another. For example: split off a corporate division, one that could restart talks with acquiring an SAP type company. MSFT already does a lot in areas such as supply chain and business intelligence. Make this a separate group. You could potentially have this division manage services – the consulting arm for MSFT. Spin off  consumer division, stick the XBox in that group. That group would be ideal to look at acquiring assets such as Yahoo! as it almost did a while back. Create a mobile division – go after the likes of Android and IOS – allow them to really push the Surface see what is there. Maintain a Windows and office division. Just milk that cash cow and prepare to continue battling Google for control of the desk top.
• By doing this the new CEO would be looked at to manage these disparate groups and divisions. Much like Jack Welch at GE. The new CEO would be asked to check her ego at the door and allow these sub groups to run autonomously, at times acting as peace maker or ensuring the buck stops with them. Innovation and new directions would be expected to come from the sub teams, not from the top.
• Microsoft needs to do something to shake things up. They are woefully behind when it comes to devices (tablets, phones etc). They have no social play nor are they in the app game. Their assets such as Bing, Hotmail, Surface and XBox do not seem to be able to crack the nut of Google, Apple, Facebook, Twitter or even capture buzz like did the Wii.

Not sure if this will happen. There were rumblings that Microsoft had debated spinning off Xbox in a consumer centric group. Time to go all in with that concept and allow the parts compete.

The parts are more nimble than the whole.

Memo from Ballmer:

I am writing to let you know that I will retire as CEO of Microsoft within the next 12 months, after a successor is chosen. There is never a perfect time for this type of transition, but now is the right time. My original thoughts on timing would have had my retirement happen in the middle of our transformation to a devices and services company focused on empowering customers in the activities they value most. We need a CEO who will be here longer term for this new direction. You can read the press release on Microsoft News Center.

This is a time of important transformation for Microsoft. Our new Senior Leadership team is amazing. The strategy we have generated is first class. Our new organization, which is centered on functions and engineering areas, is right for the opportunities and challenges ahead.

Microsoft is an amazing place. I love this company. I love the way we helped invent and popularize computing and the PC. I love the bigness and boldness of our bets. I love our people and their talent and our willingness to accept and embrace their range of capabilities, including their quirks. I love the way we embrace and work with other companies to change the world and succeed together. I love the breadth and diversity of our customers, from consumer to enterprise, across industries, countries, and people of all backgrounds and age groups.

I am proud of what we have achieved. We have grown from $7.5 million to nearly $78 billion since I joined Microsoft, and we have grown from employing just over 30 people to almost 100,000. I feel good about playing a role in that success and having committed 100 percent emotionally all the way. We have more than 1 billion users and earn a great profit for our shareholders. We have delivered more profit and cash return to shareholders than virtually any other company in history.

I am excited by our mission of empowering the world and believe in our future success. I cherish my Microsoft ownership, and look forward to continuing as one of Microsoft’s largest owners.

This is an emotional and difficult thing for me to do. I take this step in the best interests of the company I love; it is the thing outside of my family and closest friends that matters to me most.

Microsoft has all its best days ahead. Know you are part of the best team in the industry and have the right technology assets. We cannot and will not miss a beat in these transitions. I am focused and driving hard and know I can count on all of you to do the same. Let’s do ourselves proud.

Steve