What are we going to call cars that drive themselves? The term "automobile" would be perfect, but that's already taken.
"Nemo" means nobody in Latin -- a car driven by no one would be called a "nemobile." And you could call them "nemos" for short.
By the way, that's nemo with a long "e" -- pronounced like the fictitious fish or the commander of Jules Verne's submarine the Nautilus.
Short, distinctive, meaningful, good nickname. Much better than "driverless car," or "self-driving car," or the inevitable flat acronym "SDC."
By the way, if you are doubting that nemos will be on the scene anytime soon, consider this, as noted by Erik Brynjolfsson and Andrew McAfee in their excellent book Race Against The Machine: In 2004, DARPA offered a prize for any autonomous vehicle that could navigate a 150-mile course in the Mojave Desert. The best performing nemo only travelled eight miles, and it took two hours to do that. But by 2010, Google's self-driving cars had logged 1,000 miles on US highways.
Now fast forward to the summer of 2015 -- Google reported that its cars had logged one million miles of autonomous driving. And in 2016, the Tesla S and X now offer easy-to-use and dependable autopilot -- a very credible early form of self-driving.
What connects these two stories? Answer: An uprising of restless and empowered citizens and customers.
Five years ago our research began picking up faint vibrations of an approaching seismic shift -- what in those days we called a groundswell. People were using technology to take power from institutions. Technology was dissolving traditional means of government and corporate control -- pricing power, information monopolies, media influence, and various forms of private and public regulation. The new reality placed people on more equal footing in society and the economy, ushering in what Forrester and others call the Age of the Customer. In this 20-year era consumers will slowly but inexorably gain power.
Here are a few glimpses of this dynamic at work... 78% of U.S. consumers read detailed product or service reviews online before buying. 22% of U.S. buyers compare prices when they are shopping in a physical store. 20% of U.S. consumers trust digital financial advice as much as their human advisor. And we are just getting started...
Here's my list of the ten things that captured my imagination in 2015. These are my personal views -- not derived from Forrester's research or data. Inevitably, the list starts with Apple...
1) The Apple Watch. Not bad, not great, a solid "Meh." A pain to keep charged, fussy interface, borderline value. I don't like other people wearing what I am wearing.
2) The new iTunes. A miss-guided hash amalgamating Beats, Radio, streaming, and library. A boat/car that leaks on the water and creaks on the road. Prima facie evidence of the company's difficulty reaching zen simplicity in the post-Steve era.
3) The 6 Plus iPhone. Best phone I've ever owned. No, it's not too big, and yes, it will fit in your pocket.
4) Apple Photos. Fantastic, simple, easy, transparent. As good as iTunes is bad.
5) The book MindsetThis volume has been around for years, but I finally read it after too many people I trust kept referencing it. Carol Dweck describes what it will take to be successful in the future -- a "learning mindset" versus a "fixed mindset." I bought it for all of my kids for Christmas. A lot of CIOs (you know who you are) should also read it.
That's Danny Meyer, the CEO of Shake Shack on the right, and in the middle is Gwen Uyen Nguyen, from the crowdfunding company Indiegogo (I'm on the left with Dave Evans from Forrester in back). What were companies like Shake Shack and Indiegogo (and Tesla, New York Life, Pure Insurance, Kimberly Clark, Oppenheimer Funds, PBS) doing at the Forrester Age of the Customer Executive Summit?
Simple -- to talk about how they win, serve, and retain their increasingly empowered customers. The CIOs and CMOs who attended our exclusive event understand that the rules of their business have changed -- that the customer has become, in the words of one executive, "...the protagonist in all of their stories." A lot of ground was covered (you can watch videos from the event here) but below are my five favorite learnings:
Lesson One: Lubricate paths between customers and product builders. JB Straubel, the CTO of Tesla, stated that his company owns its dealers and repair shops because they want an un-interrupted feedback loop between its customers and its engineers. Better loop, better cars.
Lesson Two: You have to work differently to achieve customer-obsession. According to James McQuivey of Forrester, this is how you work now: 1) Simplicity, not complexity. 2) Immediacy, not latency. 3) Aligned, not siloed. 4) Agility, not rigidity. Sounds obvious. but in reality hard to achieve.
All CEOs strive to increase revenue. It expands market share and pushes stock prices higher.
In our digital age, how do you get it? As it turns out, good customer experience drives revenue growth. Seems obvious, but it took Harley Manning of Forrester months of research to prove it. You can find the report here (summary unless you are a client...)
Harley examined five U.S. B2C markets in which there was a leader and a laggard in Forrester's CX Index. He compared their revenue growth and CX Index levels over a five year period -- 2010 to 2014.
In cable, CX leader AT&T grew 6.2 times faster than laggard Comcast; in airlines, experience leader JetBlue grew 5.5 times faster than laggard United; in the full service investment industry, the leader Edward Jones' revenue grew 2.6 times faster than laggard Morgan Stanley; in the retail industry, customer experience leader Amazon grew 17 times the rate of laggard Wal-Mart.
Great books, from great clients... Forrester's Board of Clients were in Cambridge this week. This brilliant cross-section of our 2,400 clients tells us what we are doing right, what we can do better, and where we should go.
I always love the pre-meeting dinner. It typically turns into an intellecutal/techie slug-fest fueled by good wine. We did it this year in the restaurant where Mitch Kapor famously told Steve Jobs, "I'll make you a deal. You stay away from commenting on my dietary habits, and I will stay away from the subject of your personality."
Some random thoughts/conclusions from our discussion... Only one board member had a smart watch (not Apple), but 50% think they will wear one within two years. Moore's Law grinds onward, but corporate organization and culture lag dangerously far behind. Big companies must innovate outside of the core, but then must know how to successfully bring it back inside.
And over dessert we talked about our favorite book of the moment. This year there was a dystopian, sci-fi overtone. Here's the list:
Why do CIOs not become CEOs? What prevents them from achieving at the highest organizational levels?
It's because they don't have their hands on revenue, unlike CMOs, CFOs, brand marketers, and strategists.
But now we are entering an era where CIOs must manage two agendas: 1) the internal systems (IT), and 2) the systems, processes, and technologies to win, serve, and retain customers, what we call business technology (BT). As shown, CIOs should be guiding their companies along a path to high IT and high BT -- the place where technology will truly move revenue and profit.
Is it happening now? At the Wall Street Journal CIO Network event, I asked attendees if they were involved with serving customers and building BT agendas -- most of the hands in the room went up. I thought: "Wow...a pretty advanced group." But at the end of the conference the CIOs presented their collective priorities. The word "customer" was nowhere to be seen. The list was a litany of traditional IT agenda items -- from training to H1B visas to creating more of a "business vision," whatever that is.
At Forrester's CIO/CMO Summit in Napa Valley this week I moderated a panel of executives from three digital companies. The panelists were: Liz Crawford, the CTO at Birchbox; Allan Jones, the CMO of ZipRecruiter, and Blair Ethington, the VP of Marketing and Brands at Crowdstar. The audience was primarily large company CIOs and CMOs. My panel was a chance for them to see the other side of the tracks -- how digitally-native companies are organizing, behaving, recruiting, developing, and thinking. Here are the lessons.
Beautiful, but a niche product. I estimate that only 10% of the 250 million worldwide iPhone users will buy the Apple Watch. That's approximately $8-$12 billion of revenue for Apple -- not bad, but hardly the "breakthrough" or "new chapter" claimed from the Cupertino stage.
Why? 1) For many, two devices on the body are unnecessary. Pulling the iPhone out of a pocket or purse is fine -- most will not need another device to access payments or track health. 2) What we wear is a deeply cultural and emotional choice. A watch, like a shirt, shoes, tattoo, skirt, jewelry, contains complex and carefully crafted information about the wearer -- and these messages are continually massaged and warped by the often inexplicable forces of fashion. And no amount of "Milanese" and "buckle" luxury watchband talk can obscure this issue. 3) Wearing a radio directly on the body spooks many people who rationally or irrationally fear the health risks of close electromagnetic radiation. 4) It's expensive -- and not covered by carrier subsidies. It's $600 for the whole package of a subsidized $200 iPhone and the $400 Watch. 5) The form factor has fixed limits -- the small screen obviates advertising, electronics fatten the case, big fingers obscure the screen when touching. For many, the form will be seen as simply ugly. 6) Having to charge yet another device every day will be a bridge too far for many.
Stride for stride with Forrester, others have been doing excellent work describing the emergence of the empowered customer. Here's a very short list of notables:
1) Gavin Newsom, the Lieutenant Governor of California, describes how empowered customers (citizens in this context) will change society when they flex their newfound muscles in the political arena. Citizenvilleshows how the populace's power will not be restricted to the commercial world.
2) Jim Blasingame has written a prescient book describing how the age of the customer will impact small businesses and what they should be doing to prepare for those changes. Here's a great quote from Jim: "It's okay to fall in love with what you do, but it's not okay to fall in love with how you do it."