Seventhman Blog

1. Embracing the Big Data

   Big data may not be new, but the buzz about it continues to grow each day.  We have created data so big that we can no longer work with them using traditional database management tools.  Did you know that we make as much as 2.5 quintillion bytes of data every day?  By the word itself, data has become this huge that curating and analyzing it is a big challenge… which can become the next ‘big’ thing for companies wanting to capitalize on it.  Big data may be the hottest IT buzzword for 2012, and to find cost effective measures in working with this massive data is something that cloud architectures are targeting.  Now, even startups can rent server time cheaper than ever.

   Big Data: A Needle in a Haystack

   When data becomes too big and too fast for your database architecture, here’s where the problem sets in.  Data comes from almost everywhere like posts in social media sites, online videos, online sales transactions, GPS signals and so on.  The challenge now is how one can control the volume, velocity and variety of data streaming in – so you can gather business intelligence that will be useful to your organization.  These new types of data can definitely help make your business more agile, leading to faster growth and eventually, success.  Data is indeed valuable for analyzing things and to help you create new products.  It can reveal customer insights from various demographics.  Thus, in the end, it helps you gain a competitive advantage.  The only problem is that with size comes clutter.  So, how can you really manage?

   Creating Big Data Initiatives for Business Success

   I have come across a post lately featuring a study on how big data fueled the predictive analytics process on tracking  college students’ retention rate ( and it’s still a work in progress ).  Think of big data as an early warning device which can stop any organization from committing a costly mistake.  Come to think of it, information is the new commodity today and those who have the right info at their hands have the power to control the fate of their business.  The real issue perhaps that we will face is not only the security of maintaining this big data, but in finding the right people who will manage it.  Those who are specially trained for this job will know the value of data when it comes to your business, helping you sift through all the ‘mess’ and gather those data that you really need.  Because only meaningful data can drive business innovation, it is crucial for you to define internally what big data really means.

   Finding New Opportunities in Convergence

   Big data is more than just a thing for the curious; you need to have an entrepreneurial outlook to make it work.  This calls for a strategy, on how you can integrate a plan at every department so everyone can take accountability.  For example, you can work with your key persons to make sure that data is used correctly so it can deliver the best impact for your business.  You need to understand the why of using this data now and in the future, for you to make the right decisions if you’re implementing change in your business.  Of course, there will be issues when it comes to data quality so you need careful planning – from data collection to analysis.

   Big data fuels the heart of continuous improvement in your business, as you learn from the process and feedback from your stakeholders.  Your end goal is to save time and money so you can reach maximum ROI for your business.  Though not every business treats big data the same, the chance of finding practical ways to harness its powers will open a door to possibilities beyond what you can only start to imagine…

   Finding patterns in your data may be the first step.  What’s next?

2. Can the World Survive without Outsourcing?

   I’ve been asking people lately if they can imagine a world without outsourcing.  It seems that everything can be outsourced these days and thanks to new technologies, we are transcending the barriers of geography to get the best solutions at the right cost.  There are many reasons why companies are into outsourcing and it all comes down to the value it brings to their business. In this era where globalization has brought changes in the way we do business, outsourcing is definitely a plus when it comes to competitive advantage – from manufacturing, service outsourcing, marketing, management, accounting, legal and human resources.  We’ve become accustomed to the practice that I can’t help wondering: Can we survive without outsourcing?

   Surviving the Free-Trade Syndrome
   
   In this age of uncertainty, endless debates have been spurred and outsourcing has been full of misnomers since.  The issue perhaps is that governments should leave the markets to organizations, instead of making a controversy that can make things worse.  There’s simply no way to reverse the laws of economics and free trade puts everyone on an equal plane to prove their worth in a globally competitive market.  Think of it this way:  The reason businesses are hiring offshore is because of the talent they find there and it goes beyond cost play.  If we look at outsourcing in a different perspective, it’s simply trading services.  In the olden days, they might have referred to this as some form of a barter system that forged ties between nations of various race, age and religion; it helps in overall economic growth.

   Outsourcing: Stealing Jobs from the Middle Class

   And I have to put a big question mark to that!  It’s so easy to point fingers at outsourcing in the name of job creation.  Uncle Sam may have a reasonable cause to stop companies from sending jobs abroad in an effort to protect the interest of its citizens.  Many have even argued that there’s simply no other choice but to outsource overseas to lower costs and remain competitive.  Come to think of it, outsourcing is no different in mass migration to greener pastures.  For the sake of organizational expansion, outsourcing is a strategic business response in a global economy that thirsts for something cheaper, faster and better.  Will hell freeze over if one day, legislations passed a bill that puts a total ban on outsourcing worldwide?  There will be a domino effect.. of catastrophic events. Small to large-scale businesses in the first world may run down and workers in developing nations may have to look for other means of being self-reliant.  If that happens, we’re going back to the dark ages, instead of moving forward.

   Outsourcing and the 21st Century Global Economy

   Like it or not, outsourcing is the new paradigm in the way we do business these days – in the name of efficiency and productivity.  The truth is, there’s simply no ‘out’ or ‘in’ these days because what matters is getting quality work done – wherever that may be.  Perhaps, in the future, we may do away with ‘Made in America’, ‘Made in China’… as everything is made in the world, by the world.  And to answer the very question I’ve asked, I don’t think we can survive without outsourcing.  Besides, it’s simply about where I’m planning to get things done.

   This is the outsourcing evolution.  What’s your stand?

3. What You Don’t Know About the Global Workforce

   The global workforce is rising and we can’t ignore it this time.  What started as tech startups are now operating online services to countries across the globe.  We hear plenty of businesses join the global market, as they utilize workforce from countries like India, Philippines, Mexico, China and so on.  There have been plenty of predictions written in the outsourcing arena as well and too many success stories to tell.  But little do many know that it all started with a dream… a seed that took plenty of time and money to grow into a global business, thanks to the help of outsourced service providers.

   Let’s take for example the case of  Xoom, a business that provides money transfer service to 30 countries.  If you notice, the industry once dominated by Western Union is now having to compete with businesses online which employ workers offshore to provide customer service on a much more personal and cultural level.  This strategy can also help where customer service is called for.

   Yet, there are those who view this as a monopoly on a global scale – where cost is the main driver to winning the game.  Not everyone has a happy ending to tell and managing a global workforce is a daunting task.  If you want to succeed, you need to have a global mindset that’s open to new ways of thinking and solving problems, no matter where you are located.  It’s all about agility – in talent, management, and culture as each business face this new world where expertise becomes a rarity.  Just how can you set up a business utilizing the best skills at the right cost?

   Having a mix of workers from various backgrounds can become an asset or a challenge.  Just imagine this: By the year 2050, there will be an estimated 1.5 billion people who are 65 years and older.  Demand for labor will increase and the median age as well, as technologies make it easier for people to work anytime, anywhere.  As global networks grow, we will realize that the more diversity we have, the better it will be for us to come up with solutions.  The question now is: Are we ready to learn how to work with people outside our demographics.. so we can bring out the best in everyone?

   Perhaps, we’re one step closer to crushing these road blocks in this age of uncertainty, where we will have to find ways to working around time zones and trust issues – which is the most basic problem of them all.

4. Top 3 Questions You Have to Ask When Hiring the Best Outsourced Provider

   Outsourcing has become a popular trend these days that small, medium and large scale businesses are doing it altogether.  Despite the fact that many have been ranting about the drawbacks of an outsourcing contract, the race is still on to finding the cheaper, faster and better alternative service available on the market.  Just how do you know if your potential outsourced service provider can do the job?  If so, will they do it right?

   The Big Outsourcing Lie:  It’s Simple!

   Just like hiring a new employee, you would not sign the dotted lines without asking a few important questions.  In fact, looking at an outsourced vendor as an extension of your in-house staff will help you approach the situation with much better results.  Outsourcing is never that simple, no matter how others may seem to have that luck in spotting rare talents in exotic locations the world over.  So, what do these businesses know that you don’t?  It starts with just three questions, namely:

   What Makes You a Better Choice?

   Sometimes, the simplest question of them all will help you read between the lines.  Or more precisely, it’s like asking ‘Why you?’ when there are hundreds to thousands of service providers out there.  Watch out for warning signs if they stumble in response, or when you get a long and winding reply which can be summed up in a single sentence.  Those who are confident about the quality of their service will give you no reasons to doubt.

   How Can You Help My Business Achieve ROI?

   The best outsourcing providers will go beyond the usual ‘set it and forget it’ setup, and will want to learn more about your business goals.  They should be able to help you understand how they will work on your project to make sure that quality work is delivered, helping you make more money for your business in return.
   
   Who Will Respond to My Needs?

   If you’re going to outsource your internal operations to a third party provider, you must at least know what technology is available, in spite of the virtual workplace.  Does the service provider have a physical office?  How will you keep your communication lines open?  It’s important to know what type of support you’ll get and you have to be specific about it.  Do they allow on-site visits if issues arise which can’t be fixed remotely?

   Other than these, you may want to check references – not just the ones your candidates provide.  It’s easier to do a check these days and all you have to do is Google a name.  Having this kind of due diligence will help you in your search for who will really fit in the job requirement, making it easier for you to come up with a better hiring decision.

   And if your outsourcing contract works out well, then stick with it!  As they say, ‘if it ain’t broke, don’t fix it’.

5. Going Beyond Customer Satisfaction Surveys

   ‘Ask and you shall receive’ is a popular adage that many businesses might have failed to channel.  Sometimes, when you’re not sure where your market is heading, all you have to do is ask your customers about it.  A few spontaneous questions can lead to valuable insights on how you can understand your customers so you can quantify what’s useful and what’s not.  This is where the art of customer satisfaction survey comes in.  But, can it really predict your business success?

   Measuring Customers’ Perceptions is the Key

   For your customer satisfaction survey program to be effective, you must focus on measuring your customers’ perceptions.  It’s a no-brainer that customer satisfaction is directly proportional to brand loyalty and understanding your customers’ sentiment may be a bit tricky in the beginning.  When done correctly, you can monitor your relationship with them, so you can improve overall customer experience with your brand.  This is why it is absolutely important that your survey reflects what your respondents really care about.

   Dispelling the Customer Survey Satisfaction Myths

   Take note that a traditional survey can work for.. or against you, and it doesn’t have to do with innovation at all. Unlike popular beliefs, getting the feedback of your customers is not a luxury metric for large businesses.  You don’t have to shell out big bucks and spend lots of time in conducting a large-scale research, thanks to online tools these days.  Another fallacy of these types of surveys is that the more questions you ask, the more info you’ll get.  It will depend on the quality of your questions, no matter how short your survey is.  When you ask it right, you can actually produce not just a report; but using the data to come up with results, like making fixes to your products or service offering.  Still, just because you’ve asked doesn’t mean answers will come pouring.  This is why it is important not just to ask, but to give your customers a true means of sharing their feedback.

   Going Beyond the Usual

   If you’re looking for new ways of doing business so you can stay ahead of the game, you have to go beyond the traditional survey setup and simply deliver on your brand promise.  Besides, no two customers are alike and their behavior can be misinterpreted if you focus on feedback alone.  Customers may not always tell you when they’re happy about your brand but when they’re not, you need to keep your eyes and ears open.  And with the amount of information available to everyone these days, one bad word about your brand is like a nuke exploding on the Web.  Satisfaction may not mean loyalty at all and building a lasting connection with your customers is what makes a whole lot of difference.

   The only question now is: Will fixing the problem lead to a satisfied customer?

6. Drawbacks of IT Outsourcing Revealed

   With the sluggish economy and ceaseless debates around the subject, one can only wonder what outsourcing in this age of uncertainty really means.  Every company these days are trying to make ends meet on nearly every level, where they strive to bring value to their business.  While outsourcing may have been blamed countless times to the cause of unemployment, let us not forget that outsourcing is merely a business strategy helping an organization, large or small, survive and thrive .  To maximize productivity and minimize cost is not an easy fete, but it doesn’t mean a perfect solution either.

   Realities of IT Outsourcing You Need to Consider

   Despite the fact that IT Outsourcing is growing each year, even in places like China where English skills need to scale higher, many are still outsourcing some or most operations run by their IT Departments.  Whether be it a permanent or temporary fix to bridge the gap among cost, quality and manpower – outsourcing may seem like a salvation to many, that is if you are not too overeager to miss the real cost of outsourcing IT.  For example, if you are to move your IT functions offshore, you need to consider travel cost to the country of your choice, not to mention, other costs that may involve directly ( or indirectly ) with running your operations there.

   Calculating Beyond the Real Cost

   While you may think it will cost you less in the long run to get a third party service provider, you may have to consider the time factor when it comes to their familiarity with how your system and network really works.  If not, that can mean additional costs in training.  Then, there will be cases when you need something done a.s.a.p. and your outsourced IT provider must be inept to deal with issues right away, or you can suffer delay time which is not really good for any business.  Whether you’re outsourcing locally or offshore, you have to consider the worst case scenario to prepare yourself for the unexpected, just in case.  The problem is that plenty of contracts are sugar-coated and misleading, and no matter how urgent your needs may be, it helps to see a bigger picture that includes the real cost + long term benefits of having an outsourcing partnership.

   Outsourcing the Human Liability

   What drives companies to outsource these days is having access to first-rate IT expertise and resources that will yield more results and cost less.  Still, one must consider that anything, or anyone, can become a liability.  It does make sense to have your fine print well-defined, as well as backups, in case data is lost or stolen.  Yet, the question here is how much will it cost you when downtime happens because of these?  Will it cost you more if your team hasn’t worked for an entire day ( or week ) because the system crashed?  Is your team motivated enough to continue with your cause, efficiently?  Have you even considered the impact of cultural barriers that may lead to communication gaps?

   You may argue that any business is a gamble and it comes with risks.  Keeping a close eye is just a start and no matter how providers may offer free consultations, it’s only a sales pitch.  It will always come down to long term benefits and what outsourcing will really cost your IT dollars.  Choose wisely!

7. Thinking Fast, Building Faster with a Lean Business Model

   You may have been doing everything in order to market your products and/or services, and yet, you still wonder why your efforts seem to be in vain.  There’s an adage that goes, ‘if what you sell is good enough, it will sell itself..’ and just how true this is can only be measured by one word: Quality.  But, in a world where digital word of mouth is amplified more than ever, just how can you create a winning strategy to build that sense of trust among your leads, prospects and customers?

   When Less is Truly More

   Whatever you are offering out there, know that your product or service exists to provide a real solution to a real problem.  Take note that I’m highlighting the word ‘real’ – which is something that everyone is looking for these days, from testimonials from real people to authentic information in your website.  Gone were the good ol’ days when your home page looks like a digital brochure that people can navigate through; you have to connect with your audience and learn new perceptions in this social media age.  But, what’s more important is learning how to segregate the clutter from what’s necessary and when you do, you will be just a few steps away from creating an irresistible product that speaks for itself.

   Building Value and Cost Containment: When Going Lean Matters

   These days, your customers’ voice matters more than ever and involving them in creation of new products/services may seem appropriate… and when you do build it, they might want something else.  So, how can you accelerate the brainstorming process for your business to grow faster in this age of uncertainty?  The answer may just lie in going lean – as in, the Lean Business Model Canvas.  Finding a niche is crucial as it gives you a chance to focus on a specific target market.  You don’t want to be everywhere serving everybody.  This will mean you have to get the best bang for your buck with a productive process wherein you can maximize creation of value for your customers with fewer resources, therefore, eliminating waste.

   Developing Strategic Partnerships with a One-Page Plan

   The lean business model is not only ideal for startups or small businesses, but it can also be applied to outsourcing as well.  The key here is to optimize technologies, manpower, assets to provide value-added products and services to customers.  Think of it this way, customers are smarter these days and to meet their ever-changing demands, you have to respond in a lightning speed where high quality + lower cost = productivity.  Many may have this misconception that this lean concept is only suitable for manufacturing and that’s not really the case.  It may take time getting used to shifting from traditional business models, no doubt.  But, the beauty of this model lies in its simplicity and flexibility that help you identify what matters most to your business right now, in just a page.  You can easily identify your key partners, key activities, key resources, cost structure, customer relationships, customer segments, channels, revenue streams, and value proposition – and arrange them accordingly as you can see in this lean business model canvas template.  Now, that’s giving you a bird’s eye-view, minus the complications of drafting a 30-page business plan.  You can then create a flow of process and methods to achieve a viable product, minus waste, and perfect that value you’re creating.

   At the end of the day, the only way you can innovate ‘innovation’ is through continuous improvement and this time, you may simply have to go lean… and mean.