Click here to close now.

Welcome!

Linux Authors: Pat Romanski, Liz McMillan, Elizabeth White, AppDynamics Blog, Carmen Gonzalez

Related Topics: @ThingsExpo, Java, Wireless, Linux, Web 2.0, Big Data Journal

@ThingsExpo: Article

Code Halos Strategies, Retailing and Digital Disruption

The struggles of traditional retailers

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 lose 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

Browse the Mobile Solution Directory

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.

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
The recent trends like cloud computing, social, mobile and Internet of Things are forcing enterprises to modernize in order to compete in the competitive globalized markets. However, enterprises are approaching newer technologies with a more silo-ed way, gaining only sub optimal benefits. The Modern Enterprise model is presented as a newer way to think of enterprise IT, which takes a more holistic approach to embracing modern technologies.
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
Every day we read jaw-dropping stats on the explosion of data. We allocate significant resources to harness and better understand it. We build businesses around it. But we’ve only just begun. For big payoffs in Big Data, CIOs are turning to cognitive computing. Cognitive computing’s ability to securely extract insights, understand natural language, and get smarter each time it’s used is the next, logical step for Big Data.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
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!
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
Container frameworks, such as Docker, provide a variety of benefits, including density of deployment across infrastructure, convenience for application developers to push updates with low operational hand-holding, and a fairly well-defined deployment workflow that can be orchestrated. Container frameworks also enable a DevOps approach to application development by cleanly separating concerns between operations and development teams. But running multi-container, multi-server apps with containers is very hard. You have to learn five new and different technologies and best practices (libswarm, sy...
SYS-CON Events announced today that DragonGlass, an enterprise search platform, 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. After eleven years of designing and building custom applications, OpenCrowd has launched DragonGlass, a cloud-based platform that enables the development of search-based applications. These are a new breed of applications that utilize a search index as their backbone for data retrieval. They can easily adapt to new data sets and provide access to both structured and unstruc...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The worldwide cellular network will be the backbone of the future IoT, and the telecom industry is clamoring to get on board as more than just a data pipe. In his session at @ThingsExpo, Evan McGee, CTO of Ring Plus, Inc., discussed what service operators can offer that would benefit IoT entrepreneurs, inventors, and consumers. Evan McGee is the CTO of RingPlus, a leading innovative U.S. MVNO and wireless enabler. His focus is on combining web technologies with traditional telecom to create a new breed of unified communication that is easily accessible to the general consumer. With over a de...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
Cloud is not a commodity. And no matter what you call it, computing doesn’t come out of the sky. It comes from physical hardware inside brick and mortar facilities connected by hundreds of miles of networking cable. And no two clouds are built the same way. SoftLayer gives you the highest performing cloud infrastructure available. One platform that takes data centers around the world that are full of the widest range of cloud computing options, and then integrates and automates everything. Join SoftLayer on June 9 at 16th Cloud Expo to learn about IBM Cloud's SoftLayer platform, explore se...
SYS-CON Media announced today that 9 out of 10 " most read" DevOps articles are published by @DevOpsSummit Blog. Launched in October 2014, @DevOpsSummit 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. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce softw...