This episode is a repost from The B2B Growth Blueprint Podcast with Mark Osborne.
There is a shift away from traditional management toward self-managed, digitally-enabled companies. We are entering the Post Managerial Era of Capitalism. In this new way of thinking about business and organization, top-down structures are giving way to self-management, where employees make decisions informed by real-time data and customer insights.
Mark Osborne from the B2B Growth Blueprint podcast provided a platform to discuss the implications of this shift.
Mark highlights the role of empathy, emotional engagement, and agile customer feedback in building responsive, customer-centric businesses, and emphasizes the importance of leveraging digital tools to create interactive environments where customers can actively participate and provide invaluable insights. This approach allows businesses to strengthen product development and build loyalty by making customers feel directly involved.
Mark Osborne emphasizes the relevance of these strategies for early-stage companies, emphasizing iterative design and customer engagement, even with limited resources. By integrating these principles, businesses can not only strengthen their product development but also create a loyal customer base that feels directly involved in the process.
The Revolutionary New Direct Connection Business Model
Digital companies are increasingly directly connected to their customers, allowing real-time access to behavioral data.
This data allows companies to act on direct customer needs rather than relying on inferred needs or top-down commands. Amazon is a model example.
This direct connection model is a major shift in the business ecosystem, opening up new opportunities for startups, small firms, and any company operating with constrained resources. Direct connection is a different way of doing business.
Role of Data and Insights
In this new business system, behavioral data is more valuable than customer opinions or satisfaction surveys.
Data from customer actions, like purchase behaviors and clickstreams, is analyzed to inform decisions, shifting the role of employees to interpreting and innovating based on real customer insights.
Management Evolution – Market Selection
Market selection, whereby customer choices directly guide company strategy, replaces traditional management roles.
Market selection aligns with modern complex systems theory where valuable patterns emerge when new behaviors are organically selected by the market.
Balancing Data and Human Empathy
Mark Osborne emphasizes the role of data and technology, especially in marketing, for understanding and tailoring to customers.
He raises an important point about understanding customer “attitudes”.
These are derived by marketers from observed customer behaviors. Attitudes don’t guide behavior, they’re exhibited in behavior.
He gives an example of Henry Ford and Steve Jobs, who innovated without surveying for customer input.
A New Approach to Identifying Customer Needs
Rather than relying on what customers say, companies should observe their actions to deduce their needs.
AI and ML can identify the relevant behavioral patterns, while human empathy and mental models are used to interpret and validate the reasons behind behaviors.
Human Intuition and Non-Intuitive Data Insights
Mark Osborne acknowledges the value of machine learning in identifying unexpected data relationships.
Hunter argues that even with incomplete behavioral data, companies should examine broader patterns within the customer’s system or environment.
For example, changes in one area of behavior could hint at underlying shifts that explain specific purchase frequency changes in other areas. People who work remotely or partially remotely might exhibit new grocery shopping frequencies, or shift to home delivery..
Leverage Customer-Driven Insights
Rather than surveying customers, aim to create environments where they can interact with prototypes, share experiences, and even troubleshoot issues, similar to a community-driven model.
This helps capture genuine behavior-based feedback instead of attitude-based feedback, which can be more insightful.
Utilize Generative Platforms
Hunter points out that platforms where customers can participate in the development or improvement process — like bug-fixing communities in software or feedback forums for prototypes — foster a sense of ownership among users.
This interaction allows companies to gather useful data without needing to conduct costly or intrusive outreach.
Create a Feedback Loop with Iterative Testing
Early-stage companies, especially those constrained by resources, can implement quick, small-scale experiments or beta tests that engage users in a dialogue.
Instead of aiming for a complete MVP, which may risk negative experiences, focus on presenting these as “works-in-progress” and welcome specific input on how to enhance them.
Focus on Needs, Not Just Problems
Hunter highlights the importance of distinguishing between immediate issues and broader needs.
By addressing the underlying emotional or performance aspirations of users, companies can build stronger connections and deliver more meaningful solutions.
This approach shifts from just solving isolated problems to creating value around what customers genuinely want to achieve.
Scalable Engagement Strategies
Rather than direct, small-scale customer interviews, encourage scalable digital interactions through online forums, webinars, or surveys that allow customers to freely share their experiences and ideas.
Companies can create a space where customers feel involved, committed, and valued in the evolution of a product.
https://hunterhastings.com/wp-content/uploads/2024/11/New-Website-Cover-Design-TVC-1.png4581280Hunter Hastingshttps://hunterhastings.com/wp-content/uploads/2021/03/hh-logo-blk.svgHunter Hastings2024-11-12 13:33:422024-11-12 13:34:27The Value Creators Podcast Episode #51. Applying Agile Principles to Transform Management (The B2B Growth Blueprint Repost)
We are about to enter the era of AI agents, and learning about them and deploying them is relevant to every business. What are they? How can a business develop one? How can a business successfully deploy one? How can a business develop a team of AI agents to work together to automate processes? How will these AI agents create value for customers?
In this episode of the Value Creators Podcast, Hunter Hastings gets answers to these questions from Michael Walker of SmythOS. Michael is the right expert to learn from because he prioritizes customer-centricity in AI solutions. Michael believes that businesses should put customer needs and benefits first, before technology features. That’s the Value Creators mindset, and it helps businesses to avoid the common pitfall in tech-first startups where excessive focus on features can obscure the value for end-users. According to Michael, this focus on customer problems is foundational, and AI deployment should primarily aid in addressing customer needs rather than showcasing technological capabilities.
SmythOS advocates for a future where AI and humans work in synergy to optimize value creation effectiveness.
Michael emphasizes focusing on customer needs and solving real customer problems rather than overemphasizing technology.
Importance of “value creation” over “feature selling” to avoid common pitfalls in SaaS and tech startups.
Michael’s guiding belief: Success begins with solving customer problems effectively, efficiently, and affordably.
Empathy and AI
Hunter mentions that empathy is crucial in understanding customer problems.
Michael acknowledges AI’s role in sentiment analysis but asserts that true empathy originates from human insights.
AI can mimic empathy through data analysis, yet true emotional understanding remains a human responsibility.
Mainstream Market for AI
Michael states that AI is nearing a mass market stage, propelled by tools like ChatGPT.
Increased mainstream recognition and use of AI demonstrate its growing integration into society.
Potential for AI’s societal impact includes politics and personalized advertising, suggesting pervasive AI influence even in everyday interactions.
Overview of SmythOS and its Founding Vision
SmythOS’s mission is to create a platform enabling users to build custom AI agents without complex coding.
Origin: Founded by the creators of the AI tool Ink4All, aiming to simplify AI accessibility for individuals and enterprises.
Goal: To provide a versatile tool for task automation across various business sizes and needs.
Coordinated AI and Specialized AI Agents
SmythOS’s “coordinated AI” model: AI agents each specialized in specific tasks working together for greater efficiency.
Drawing an analogy with an assembly line, each AI agent focuses on a specific role, such as SEO or content creation.
This approach ensures a highly efficient, consistent, and 24/7 operation, ideal for businesses aiming for automation and precision.
Leverage of AI Agents & Firm Structure:
Michael discusses how AI agents can greatly increase productivity without necessarily reducing headcount, leading to higher revenue per employee. The integration of AI means that individual productivity can skyrocket by automating analysis and trend identification tasks, enabling both individuals and organizations to operate more efficiently and steadily.
Michael envisions firms having more stable growth due to AI supplementation rather than disruptive workforce reductions or replacements.
Future of SaaS Companies:
Hunter raises the question of the potential impact of AI on SaaS and system-of-record companies (like Salesforce and HubSpot). Michael responds that while AI can automate much of the data management traditionally handled by SaaS tools, the tools won’t become obsolete. Instead, they will be enhanced by AI to deliver deeper insights and real-time recommendations based on historical data, making them more powerful rather than redundant.
Role of SmythOS in Client Partnerships:
Michael explains that SmythOS can adapt to a client’s needs, either offering a hands-on service where SmythOS designs, builds and manages the AI agents or providing clients with the tools to build and manage agents independently. This flexibility supports both AI-literate clients and those seeking end-to-end AI solutions for complex business challenges.
Redefining Internal Structure with AI:
While the traditional company structure may remain, the problem-solving approach within AI is different. AI breaks down problems into components, with each component handled by a corresponding AI function or agent. This modular approach optimizes problem-solving and aligns each step with an AI-driven solution, improving efficiency.
AI as Digital Team Members:
Hunter introduces the idea of AI agents as digital team members, and Michael agrees, describing the current functionality of SmythOS’s chat feature. Clients can communicate with AI agents just as they would with human colleagues, creating what Michael calls a “digital dream team” where AI agents complement human roles for a collaborative working environment.
Potential for an AI CEO:
When asked if AI could assume the role of CEO, Michael humorously dismisses the idea but acknowledges the possibility of AI agents in various C-suite roles, particularly for data-driven decision-making and trend analysis. However, he notes that the visionary aspect of leadership—setting a shared mission and motivating teams—is an area where human leadership remains essential.
Entrepreneurial Intent:
Michael argues that entrepreneurial intent, which reflects a desire to serve the market and help people, is inherently human and should guide the development and application of AI technologies.
Align AI with Human Values: Ensure that your AI initiatives align with your organization’s values and mission. Use AI to enhance your ability to serve customers and create value, but keep human intent at the forefront.
Focus on Ethical AI: Develop and implement AI technologies that prioritize ethical considerations. Address potential risks and ensure that your AI tools are designed to benefit society as a whole.
Changing Modes of Interaction:
As voice recognition and gesture control become more prevalent, the way individuals engage with AI will evolve.
Michael envisions a future where people can seamlessly communicate with AI while going about their daily activities.
Managing AI Risks:
Hunter raises concerns about the potential risks associated with AI.
Michael emphasizes the importance of human intent in guiding AI development and suggests that as long as the focus remains on serving human needs and values, the risks can be managed effectively.
Show Notes:
0:00 | Intro 0:30 | Focus on Customer’s 2:17 | Can AI be Emphatatic? 3:59 | Mainstream Market for AI: Is it Here Yet? 6:47 | SmithOS: Vision and Mission 9:04 | OS: Coordinated AI 11:57 | Solving the Problem of Generating Innovation Idea 15:37 | Can AI Improve the Quality of Technological Investments? 18:01 | AI Boosts Productivity by Optimizing Resource Allocation 19:27 | Michael’s Views on AI: Enabling Smaller, Tech-Driven, Specialized Firms 21:47 | AI May Replace OR Transform SaaS Companies 23:39 | Smith OS: Relationship Between the Owner of the Problem and the Designer of the Solution 25:36 | AI Integration May Eliminate Traditional Company Departmental Silos 28:01 | AI Agents as Team Members 29:30 | AI CEO 31:30 | Hunter’s Contradictory Approach: AI Can Help Us with Vision and Mission 33:41 | Can AI Generate Bold, Unconventional Ideas? 34:34 | Entrepreneurial Intent 36:00 | Changing Interaction Modes will Transform Technology Perception 39:15 | Potential AI Risks and Concerns 40:54 | Wrap – Up
https://hunterhastings.com/wp-content/uploads/2024/10/TVC-WC-49-Fixed.png4581280Hunter Hastingshttps://hunterhastings.com/wp-content/uploads/2021/03/hh-logo-blk.svgHunter Hastings2024-10-27 19:49:562024-10-27 19:49:58The Value Creators Podcast Episode #50. Creating Value With AI Agents with Michael Walker
Has the pace and volume of change increased in the modern age? Is dealing with change more of a problem for businesses today than in the past? What is the recommended way to manage change?
Erik Schön is a student of ancient philosophy, and he reminds us that the challenges raised by change are ancient, not modern. And the ancients had good ways to deal with them. In this episode of the Value Creators podcast, Erik Schön discusses the genesis of his book, The Art Of Change, the latest of a trilogy of works that include The Art of Strategy and The Art of Leadership. Erik distills highly relevant ancient wisdom, particularly from texts like The I Ching and Lao Tzu’s Tao Te Ching. He builds a modern business application from these classic ideas based on his extensive experience in leadership and strategy.
0:00 | Intro 1:20 | The Art of Change: Background 4:34 | Practitioner’s Point of View: Developing a Resilient, Adaptable Mindset 7:53 | Persist with Change through Perseverance 11:29 | Balancing Proactive Action with Patience 14:17 | Finding Balance 15:17 | Erik’s Idea: Is Learning defined as Knowledge Accumulation? 16:06 | Flow of Knowledge and the Flow of Learning 18:24 | Embrace Natural Flow; Avoid Forceful Actions. 19:59 | Balancing of Two Elements at the Same Time 21:59 | Integrity 23:54 | Finding Balance in Flexibility and Integrity 24:36 | Idea of Purpose 27:29 | Integrity and Flexibility Guide Practical Actions 31:04 | Harmony 34:10 | Maintaining Direction Fosters Persistence and Integrity 36:39 | The Subtitle of The Art of Change is Patterns for Success 39:41 | Six Questions in Each Chapter 42:00 | Embracing Change as an Art Form: Left Brain Thinking 45:02 | Wrap – Up
Knowledge Capsule
Erik Schön’s trilogy includes:
The Art of Strategy (inspired by Sun Tzu’s The Art of War)
The Art of Leadership (inspired by Lao Tzu’s Tao Te Ching)
The Art of Change (inspired by the I Ching)
The sub-title of The Art Of Change is “Patterns For Success”.
Patterns emerge from complex adaptive systems; they are not always predictable but form as individuals interact with their environment.
“The Art of Change” book presents these patterns as 64 chapters, offering timeless insights that guide users based on specific challenges or goals.
Each chapter contains six questions aimed at prompting reflection and offering multiple perspectives for addressing current challenges, such as teamwork.
Using Patterns to Address Teamwork
Six guiding questions for teamwork include aligning collaboration approaches, matching skills with needs, and fostering feedback, integrity, and support.
These questions are designed to deepen understanding and provide actionable insights for collaborative effectiveness.
The Concept of Art in Change, Strategy, and Leadership
Viewing leadership and change as an art emphasizes balance between structure and creativity, blending practical wisdom with structured approaches.
The term “art” contrasts with rigid, formulaic methods and encourages adaptive, context-sensitive responses.
Erik’s aim in The Art Of Change is to offer a practitioner’s perspective, using first principles from ancient times to address modern leadership, strategy, and change.
Are we experiencing an increasing rate and amplitude of change in today’s world? It’s a concern that has persisted throughout history. Erik argues that change has always been a part of human existence and draws parallels to ancient times in China, emphasizing that despite turbulent conditions, people found ways to thrive.
They did so with the right mindset that prepared them for a full range of changes. Erik introduces the idea of balancing expectations with surprises in order to maintain flexibility in decision-making. He advises minimizing expectations to avoid being caught off guard and to stay present in the moment.
Erik Schön explores the concept of balance through the lenses of integrity, flexibility, purpose, capability, competition, collaboration, and harmony, drawing insights from the I Ching.
Integrity and Flexibility: Schön describes integrity as a combination of heart, mind, and gut feelings, and walking a straight path while maintaining flexibility in different contexts. The balance between integrity and flexibility is crucial, as one must adapt while remaining true to oneself.
Purpose: Schön explains that purpose, represented in I Ching, can be both individual and collective. It involves guiding one’s life and actions (or a group’s) like directing a river to prevent flooding, signifying the importance of having direction in fulfilling personal and organizational goals.
Capabilities and Competition: Capabilities refer to the ability to meet stakeholders’ needs. Rather than focusing on competition as winning, Schön advocates for a perspective of collective success, emphasizing collaboration to achieve shared purposes. This view aligns with I Ching’s principles, which stress teamwork as essential for survival and thriving.
Harmony: Harmony is likened to music, where individual elements (or team members) come together to create a coherent whole without losing their distinct qualities. Schön uses a culinary metaphor to illustrate this, where diverse ingredients enhance each other’s flavors, underscoring the value of coordination and diversity within unity.
Eric encourages embracing both practical strategies and the artistic elements of change for personal and organizational development.
Understanding Change and the Role of Mindset:
Schön advocates for a mindset that expects both the expected and the surprising elements of change, as this balance prepares leaders to adapt flexibly.
He uses the concept of approaching situations without rigid expectations, which helps reduce surprises and enables practitioners to remain adaptable and in the present moment.
By staying present, individuals can better navigate change, manage expectations, and avoid being overwhelmed by unexpected challenges.
Perseverance and Balance in the Face of Change:
Perseverance is illustrated through mythical stories such as the carp, symbolizing persistence by overcoming challenges to transform into a dragon, the ultimate shapeshifter.
Schön highlights the importance of balancing action with patience, drawing from I Ching‘s principle of “timely balance” to decide when to act or wait.
This balance—knowing when to push forward and when to observe and adapt—enables leaders to remain resilient and responsive to the dynamics of change.
Balancing Patience and Action
Embracing both patience and action simultaneously allows for adaptable and mindful decision-making.
Achieving a mindset that can “hold two thoughts at once” is key to navigating complex situations.
Integrity in Yijing Philosophy
In Yijing, integrity is depicted as “walking straight, following your heart and mind,” symbolizing alignment between one’s gut, emotions, and intellect.
The Chinese character for integrity combines symbols representing heart, mind, and action, conveying a comprehensive approach to personal alignment.
Flexibility as Complementary to Integrity
Flexibility involves staying open to possibilities and adapting to each moment while maintaining one’s core integrity.
True balance is found by discerning when to uphold integrity and when to adapt, avoiding over-flexibility that can compromise values.
Continuous Journey of Balance
The balance between flexibility and integrity is a journey rather than a fixed destination, continually influenced by context.
Erik describes this adaptability as the “art of being human,” a practice of responding thoughtfully to the people and situations of each moment.
Purpose in I Ching and Business
I Ching views purpose as both a personal direction and a guiding force for teams or organizations, similar to the concept of the Tao (The Way).
The Chinese character for purpose is illustrated by a moving foot and head, symbolizing purposeful direction in life or leadership in teams, and even society.
Purpose in I Ching is also metaphorically represented by guiding a river to prevent flooding, highlighting purpose as a force that shapes and controls the flow of actions.
Ancient Principles in Modern Context
Terms like purpose, integrity, and flexibility, though perceived as “soft” concepts, are vital operating principles, as seen in organizations like the US Marines.
These principles bridge ancient wisdom with present-day needs, reminding that humanity’s fundamental values have remained consistent across time.
Capabilities and Competition in I Ching
I Ching emphasizes building capabilities to meet stakeholder needs, aligning with business goals to serve customers and colleagues effectively.
Competition is reframed as a path to success, achieved by fulfilling one’s purpose alongside stakeholders rather than purely defeating competitors.
Collaboration takes precedence in the I Ching philosophy, emphasizing teamwork as essential for achieving shared goals, mirroring societal reliance on cooperation for survival in historical agricultural communities.
The Concept of Harmony
Harmony is illustrated with musical and culinary metaphors, where diverse elements (like notes or ingredients) complement each other without losing individual qualities.
The Chinese character for harmony combines rice and mouth, symbolizing the blend of unique contributions into a cohesive whole, promoting unity of purpose.
Harmony is key in team settings, encouraging diversity in roles (e.g., team members with different skills in a sports team) while aiming for alignment and coherence.
Direction and Persistence
Direction is a central theme in I Ching, encouraging individuals and organizations to maintain their path and purpose, even when obstacles arise.
Persistence, reinforced by a clear direction, allows flexibility to adapt while staying true to core values, fostering long-term balance and integrity.
Direction and Purpose in Leadership
Emphasizing a clear direction and a purposeful “north star” helps guide organizations and teams toward meaningful goals.
The purpose may evolve, but the consistent movement toward it creates learning opportunities and prevents stagnation.
Even without a precise destination, moving towards purpose allows teams to adapt and adjust direction as needed.
Patterns for Change and Success
Patterns emerge from complex adaptive systems; they are not always predictable but form as individuals interact with their environment.
“The Art of Change” book presents these patterns as 64 chapters, offering timeless insights that guide users based on specific challenges or goals.
Each chapter contains six questions aimed at prompting reflection and offering multiple perspectives for addressing current challenges, such as teamwork.
Using Patterns to Address Teamwork
Six guiding questions for teamwork include aligning collaboration approaches, matching skills with needs, and fostering feedback, integrity, and support.
These questions are designed to deepen understanding and provide actionable insights for collaborative effectiveness.
The Concept of Art in Change, Strategy, and Leadership
Viewing leadership and change as an art emphasizes balance between structure and creativity, blending practical wisdom with structured approaches.
The term “art” contrasts with rigid, formulaic methods and encourages adaptive, context-sensitive responses.
https://hunterhastings.com/wp-content/uploads/2024/10/New-Website-Cover-Design-TVC.png4581280Hunter Hastingshttps://hunterhastings.com/wp-content/uploads/2021/03/hh-logo-blk.svgHunter Hastings2024-10-18 09:27:232024-10-18 09:27:27The Value Creators Podcast Episode #49. Erik Schön On Self Management Amidst Change
Brian Hollins is the founder and managing partner at Collide Capital, the Founder and CEO of Takeoff Institute, and aFounding Board Member at BLCKVC. He’s devoted his career to addressing and solving the challenges entrepreneurs face in accessing capital when they’re not plugged in to elite VC networks and funding sources. Brian shares insights from his venture, Collide Capital, which provides investment, coaching, and support to entrepreneurs lacking access to traditional networks.
The conversation highlights the importance of community, mentoring and education in empowering these entrepreneurs. Brian also discusses his involvement with the Takeoff Institute, which aims to develop future leaders. The episode underscores the critical role for entrepreneurship in value creation. Entrepreneurs develop better products and services and contribute to meaningful experiences for customers. Institutional support, such as venture capital, is essential.
Yet, only some have access to these resources, particularly those from disadvantaged backgrounds who may not be plugged into the institutional environment of university incubators and venture capital pools.
Key Challenges Discussed:
Lack of access to networks: Many aspiring entrepreneurs from underprivileged backgrounds may feel disconnected from the networks facilitating access to funding and mentorship.
Intimidation by networking: Networking can be intimidating, but it is not an insurmountable barrier. With the right coaching and support, disadvantaged entrepreneurs can find their way into these networks.
Brian’s journey serves as an inspiring example of how one can create value not only through business success but also by uplifting others and fostering a culture of entrepreneurship.
Entrepreneurship creates value by providing better products and services for customers while also offering fulfillment and potential wealth for entrepreneurs.
Early-stage startups require investment since costs can outweigh revenues initially, and many entrepreneurs lack access to institutional venture capital.
Not all entrepreneurs have access to institutional funding sources like venture capital, especially those not part of exclusive networks like university incubators.
BLCKVC Initiative
BLCKVC is an organization aimed at helping people of color access the venture capital ecosystem, guiding them through the fundraising process, and fostering inclusion.
Minority founders face challenges in accessing venture capital. Institutions traditionally overlook minority founders,, but with proven success, capital flows to diverse ecosystems will increase, promoting diversification in investment portfolios.
Networking Challenges for Entrepreneurs
Many entrepreneurs feel disadvantaged because they are not part of established venture capital networks.
Brian acknowledges this is a real challenge but believes it can be overcome.
Venture capital firms tend to rely on pattern recognition, favoring entrepreneurs and business models that fit past successful archetypes, often making it harder for those outside traditional networks.
Introduction to Collide Capital and Its Focus:
Collide Capital is a venture capital firm focused on providing investment opportunities to entrepreneurs who historically lacked access to such resources.
The firm emphasizes identifying and supporting underrepresented founders and entrepreneurs.
Barriers for Entrepreneurs:
The common barriers entrepreneurs face, particularly those from marginalized or underrepresented groups include a lack of access to networks, mentorship, financial resources, and knowledge about scaling businesses.
Businesses can now generate substantial revenue with fewer resources and less bureaucracy by automating processes, reducing overhead, and leveraging technology.
Impact of Mentorship and Coaching on Entrepreneurship:
The role of mentorship, support, and coaching in the success of businesses, particularly startups.
The importance of guidance, beyond just financial investment, in helping entrepreneurs navigate challenges, avoid common pitfalls, and grow their ventures sustainably.
Deinstitutionalization of Finance Through Technology
Fintech, blockchain, and other technological innovations can potentially reduce the need for traditional financial institutions.
In this vision, financing could become decentralized, with direct access to capital through apps, lowering entry barriers for entrepreneurs.
Technology, especially the internet and online platforms, provides access to information and opportunities that were previously unavailable.
This democratization allows people from diverse backgrounds to gain knowledge and build businesses that would have otherwise been out of reach.
Entrepreneurial AI as a Thought Experiment
This concept envisions AI handling the operational aspects of entrepreneurship, from supply chain management to fundraising. Although it’s speculative, this thought experiment explores the possibility of AI supporting entrepreneurs in scaling their businesses with fewer resources.
While AI can assist in various tasks, it still requires human guidance. Entrepreneurs need to have experience or knowledge to instruct AI effectively, suggesting that AI alone cannot replace the expertise needed to scale a business successfully.
Takeoff Institute and Building Black Leaders of Tomorrow
The Takeoff Institute is an initiative that provides black undergraduates with training, mentorship, and exposure to professional environments.
The program aims to equip them with essential skills like cold emailing, managing up, and technical expertise, helping them break into elite roles in finance, consulting, and other industries.
It also addresses the lack of diversity in high-level corporate positions by connecting students with successful black professionals.
Show Notes:
0:00 | Intro 1:05 | Differential Access 4:53 | Disadvantaged Entrepreneurs: How do they Get Started? 7:14 | Is Networking a Baseless Fear? 10:01 | Unique Business Models from Lived Experience 12:10 | Less Algorithmic, More Empathetic Approach 13:49 | Fund Zero: Collide Capital’s Stoy 15:28 | What is a Scout Check? 18:01| Collide Capital Investment’s Success Stories 21:45 | Better Entrepreneurial Culture: Raising the Community 24:40 | Education’s Role in Entrepreneurship 28:21 | Fellowship Language 28:58 | Future Access to Investment 32:00 | Technology’s Role in Entrepreneurship: Can Finance Become Less Institutionalized through Apps? 34:55 | AI as an Entrepreneur’s Operating System 38:00 | One-Person Billion-Dollar Company: Building Bigger Businesses with Fewer Resources 39:30 | Wrap-Up: Building Leaders through the Takeoff Institute
https://hunterhastings.com/wp-content/uploads/2024/09/New-Website-Cover-Design-TVC-8.png4581280Hunter Hastingshttps://hunterhastings.com/wp-content/uploads/2021/03/hh-logo-blk.svgHunter Hastings2024-10-01 08:31:242024-10-01 08:34:26The Value Creators Episode #48. New Access to Capital for Entrepreneurs with Brian Hollins
John Willenborg’s business, Owl Vans, specializes in adventure vans designed for outdoor enthusiasts who seek to connect with nature. These vans provide essential comforts and accessories while encouraging maximum high-value outdoor time. The market for adventure vans has expanded rapidly, with Owl Vans leading in aftermarket accessories. John highlights the importance of scalability and being a generalist to succeed in entrepreneurship.
John’s approach emphasizes the importance of strategic marketing, careful expansion, strong partner relationships, and diligent financial management in building and scaling a successful business.
Owl Vans serve as transportation to remote, beautiful locations for activities like biking, kayaking, and swimming.
They are different from traditional RVs as they encourage minimal time spent inside the van.
Vans, particularly Sprinter vans, are built with features like queen-size beds, HVAC, showers, and toilets, and are designed for off-grid adventures.
Sprinter Vans and Their Popularity:
Sprinter vans became popular in the US about 10 years ago because of their height, allowing users to stand inside.
They range in price from $150,000 to $300,000.
They are narrow, which makes them versatile and easy to park in neighborhoods.
Customer Base and Market Insights:
The vans have attracted a significant number of female customers due to their drivability and safety features.
The adventure van market has grown significantly, with an estimated value between $1 billion and $1.5 billion.
Owl Vans is the largest aftermarket accessory manufacturer for Sprinter vans globally.
Manufacturing and Business Strategy:
Owl Vans focuses on creating products for the exterior of the vans, avoiding custom builds to ensure scalability.
John emphasizes the importance of being a generalist as an entrepreneur, learning various skills to manage different aspects of the business effectively.
Niche Marketing and Expansion
Focus on a specific market segment to build a strong, loyal customer base. For example, targeting wiener dog owners directly rather than through broader pet stores.
When entering niche communities, contribute valuable content and engage genuinely rather than just promoting products. This fosters trust and credibility.
Once established in a niche, consider adjacent markets. Transitioning from a niche-focused brand requires careful planning to avoid losing the original customer base. A flexible and somewhat neutral brand name, like “Owl,” allows for broader expansion without being tied to a specific niche.
Managing Growth and Services
Adding a service component can enhance customer satisfaction and generate additional revenue. For instance, offering installation and maintenance services can complement the sale of products and improve customer experience.
Diversify business operations to balance economic fluctuations. For example, if van sales slow down, shift focus to service or off-road product
Partnerships and Supplier Management
Good partnerships are crucial, especially for startups. Collaborating with experts and suppliers can help scale operations without significant initial investment.
Regularly review and manage supplier relationships. Maintain quality control and have redundancy to mitigate risks like supplier price increases or equipment failures. Having multiple suppliers and in-house production options provides flexibility and cost control.
Financial Management
Effective cash flow management is vital. Unlike software, physical goods involve higher incremental costs with scale, so understanding these dynamics is key to managing finances.
Expect initial financial challenges and plan for them. Managing working capital effectively during the startup phase and scaling operations while keeping an eye on costs is crucial for long-term success.
Show notes:
0:00 | Intro 00:09 | Adventure Category for Customers 03:40 | Process of Kitting Out Vans 05:20 | Popularity and Usability of Sprinter Vans 15:24 | Design Process 19:00 | Mark Packard: Be the Customer 20:21 | Knowledge and Empathy 22:21 | Knowing when to stay focused 25:43 | Brand Name is Critical 28:00 | Service Provided at Owl Vans: Maintenance and Adventure Ideas? 31:09 | Scaling Business through Strategic Partnerships 33:20 | Managing Partnership Relations 35:37 | Cash flow of a Business: Finance and Accounting 42:46 | Owl Vans: Maintaining team spirit and unity?
https://hunterhastings.com/wp-content/uploads/2024/09/New-Website-Cover-Design-TVC-6.png4581280Hunter Hastingshttps://hunterhastings.com/wp-content/uploads/2021/03/hh-logo-blk.svgHunter Hastings2024-09-17 18:07:582024-09-17 18:09:07The Value Creators Podcast Episode #47. End-user Innovation From The Middle of The Supply Chain
Digital enablement and AI are revolutionizing how companies operate and reshaping the economy.
At the core of this transformation remains a fundamental principle: the customer is the boss. In this new era, empathy becomes crucial as businesses strive to meet subjective values and deliver hyper-personalized experiences. Consumers demand instant access, precise responses, seamless order fulfillment, and transparency, while resisting intrusive tracking and data monetization.
David Kramer, Founder & Chief Product Officer at Cooperative Computing, joins Hunter Hastings to highlight how AI can enhance creativity while balancing automation and human touch. In this discussion, Kramer shares insights on the digital enablement movement, emphasizing that AI should complement human creativity rather than replace it.
He underscores the need for maintaining a brand’s unique voice amidst the risk of generic content. As AI advances, businesses must adapt, using it to innovate while preserving the essential human element that resonates deeply with audiences. This approach aligns with the shift towards hyper-personalization, where understanding and delivering what each individual wants becomes the new standard, as exemplified by companies like Nike, which serves diverse customer needs with tailored, transparent experiences.
0:00 | Intro: Vision of the Digitally Enabled Firm 01:57 | 5 Key Business Functions: Branding and Marketing 03:15 | Second Key: Sales and Commerce 03:56 | Digitally Enabled Organization: Third and Fourth Key 04:48 | Fifth Key for a Digitally Enabled Organization: Service Delivery Management 07:13 | Human Role: Coding OR Evolving Decisions? 13:13 | Are We Still Customer-Centric? 20:33 | Transition Away From Control 25:01 | Customer in this New Digital Environment 29:39 | Demand for Transparency and Responsiveness 35:34 | Managing Accelerating Digital Change Speed: The Art of Possible 40:47 | Stephen Hawking: Cosmology Depends on the Questions You Ask 45:38 | Is Competition Still Relevant, and Can Large Firms Adapt? 53:52 | Wrap-Up
Knowledge Capsule:
Digital enablement will change the way companies are run, and even change the structure of the economy. But one principle that remains the same, and becomes even more fundamentally important: the customer is the boss, subjective value is the goal, and empathy is the key capability. The customer is the driver of the digitized firm and its business model. The number one capability for the digitally enabled firm is empathy.
The governing factor is what consumers feel is appropriate to meet their needs and desires. They want instant access, fast and accurate personal request response, order completion and delivery, and complete transparency. They don’t want the uneasy feeling of being tracked and surveilled. They don’t want the diversion and interruption caused by sites selling consumer data to third parties to be monetized as digital advertising.
This consumer-led environment will require hyper-personalization: understanding and delivering what each individual wants.
It’s the opposite of mass marketing. Think about a company like Nike. It serves hundreds of millions of consumers. Its business is driven by what those customers want, when they want it, and how they want it. Nike’s customers range from the very best performance athletes who want unrestricted performance at the cutting edge of technology, to sedentary elders who appreciate comfort and stability. How can Nike serve all these customers with equal transparency? Via digitally enabled hyper-personalization. Every individual gets the experience they want when they want it, and how they want it.
The digitally enabled firm
The digitally enabled firm uses digitization (including AI) to know its customers deeply (i.e., through data), fully understand its customers and their individual experiential needs (through deductive analytics), and meet those needs better than anyone in the world (through commercial engagement, operations and fulfillment, service delivery, continuous improvement, and innovation).
For customers in general, whether B2C or B2B, their experiential requirements are going to extend towards instant access and response that is both rapid and accurate. To become an effective consumerized or customer-led company, the digitally enabled firm reviews its capacity in 5 core functions.
This is the primary function of the customer-led company simply because the first requirement is to accurately identify, deeply understand, listen to, reach, message, and persuade customers of the firm’s value proposition. Without branding and marketing, there’s no flow of information (and no flow of cash since marketing induces willingness to pay). Branding and marketing incorporate the firm’s value proposition into customers’ daily thought culture, aligning with and complementing their mindset and their perspectives, and shaping the firm’s hyper-personalization capability. This marketing capacity is becoming hyper-automated since it is fueled by digital information flow, instantaneously processed for insights and driving the rapid reaction to generate the high-response relationship the customer seeks and, ultimately, the capacity to anticipate customer desires.
Conventional commerce, including e-commerce, will go away as digital assistants become the power behind purchasing and daily life choices. They become dominant sales and commerce engines, to the digitally enabled firm’s advantage in the case where they interact well with customers and integrate into customers’ own systems and lifestyles. The result will be memorable on-demand buying and delivery experiences and frictionless repeat purchases.
Real-time operational data and analytics will enable risk and error avoidance, predictive planning, and the scalable infrastructure required for frictionless operation. Fulfillment and operations provide the means to keep promises and meet expectations, two vitally important commitments in the consumer-led relationship.
The customer’s experience-in-use is the critical key to value creation, and the digitally-enabled firm will be integrated into this experience, thereby opening up the opportunity for continuous addition of new and supplemental value and ever-strengthening sticky relationships. Continuing engagement after a purchase and after a usage experience is important. Some brands are creating digital online spaces and experiences where customers can participate and engage, such as Gucci’s Vault on Discord. Even when they are not buying or consuming, customers can be digitally engaged with their brands.
Process automation ensures delivery excellence and consistency, and customer transparency generates confidence and trust across all channels. Digital integration enables continuous improvement of processes whenever feedback indicates an opportunity. Digitally enabled firms exhibit excellent governance of the service experience.
How do we manage digital organizations of this kind, where decision-making must be near-instant and the accuracy of a millisecond decision is so critical? It’s futile and dangerous to rely on traditional management styles. Leadership and governance will exist, but they’ll change considerably. One result will be the digital CEO, connected to all aspects of all decision-making processes, governing in millisecond transaction times.
The advantage for humans
The thing that humans do very well, better than any AI, and in all likelihood for a long period of time, is understand people through an emotional perspective. And this is where the engine of branding and marketing and all economic activity actually exists. Humans will continue to keep control of their own consumerism in order to grow economic activity so that we enjoy the world that we live in. The human is not only in the loop, but the core of the loop in this regard.
Digital machinery and digital processes can understand feedback loops very well. It can read the clicks and the purchase data and generate the appropriate signals for analysts, but it can never understand the emotional attachment between economic activity and consumer needs. Consider a purchaser buying a red shirt from a shopping site. The AI can record the purchase, align the data with other historical data to generate a pattern, and perhaps draw a pattern recognition inference. Perhaps there’s a trend or a tendency. Perhaps there is a comparison to be made with other shoppers, yielding more inferences. But if the purchaser loves red shirts because his or her grandma bought them a red beanie hat for their 8th birthday and they’ve loved that shade of red ever since because they loved their grandma – AI can’t empathically diagnose that motivation, and probably won’t ever be able to.
But AI can make the purchase frictionless, the delivery faster and more accurate, and monitor the customer experience and perhaps enhance it in the future, perhaps generating loyalty and relationship stickiness. AI can become self-teaching and self-learning by structuring data and organizing it and running feedback loops. But it doesn’t know what to do with the emotional components of human engagements.
It may be possible to develop triggered models – data models or simulation models that can create signals from the states of emotional and empathic input that come from humans and human interaction, and it will get better at fine-tuning the signals and the models. It is already possible to detect temperature changes (blushing), eye movement, body language and other signals of emotional change.
The direct connection to the customer
The most exciting part of all this is the direct connection of the business model to the customer. Whether in the recording of online purchase data and digital behavior, or the monitoring of eye movements, the connection is direct and the end user directs the flow. AI (what Kramer calls digital sapiens, working alongside homo sapiens) enters the customer’s system and the customer’s life cycle and becomes part of that customer’s life, and part of the customer’s culture. AI makes data-driven decisions, and the data is customer data.
How do firms make the transition?
The first transition step is to conduct a digitization discovery: what is the capacity of the firm to digitize across four dimensions?
1. Digitizing organizational structure – eliminating hierarchy, planning, and command-and-control and substituting digital implementation of job functions wherever appropriate.
2. Methods, procedures and routines – where they have emerged and proven useful, can they be digitized for continuity and consistency? And can we change them digitally when it becomes clear we need to work differently?
3. Systems and technology – how well are IT systems facilitating people, processes and change?
4. Key performance indicators – what are the signals of success and how well are they measured, monitored and distributed for action? The key here is not KPI’s as control mechanisms (which is how they are traditionally used) but as feedback loops: building up an understanding of the current state and the patterns of its dynamics through data, analytics, and the response environment.
A current state of these dimensions is established through discovery, from which a delta is derived: what is required to improve and accelerate:
* To grow revenue.
* To become more operationally efficient.
* To continuously improve the performance of the firm through digitization and data-driven decision-making.
* To develop the cultural identity that best facilitates the collaboration of digital sapiens and home sapiens. There will be a different way of working and different forms of collaboration, and the cultural identity of the firm will be highly relevant to the nature of the adoption of these new ways.
The new customer experience
In the world of e-commerce and digital advertising that has evolved recently, the customer experience has often been undesirable, in that customers are surveilled and tracked by cookies and other software devices, and are urged into transactions by “interrupt and annoy” messages that are unwanted frictions in online engagement. This is evidence of a failure of empathy.
But the new AI approach is to prioritize an understanding of how the customer prefers to interact. After profitability (which is the mandatory gateway – business can’t proceed if it is not profitable), the quality of the customer’s experience in the response environment will be the number one attribute of business operations. Understanding the needs of the individual customer and interacting with those needs in the way that the individual customer likes best is the goal of the digitized capability that we call hyper-personalization.
Digital assistants will become more closely attached to and associated with individuals and will sense our feelings – whether that’s frustration with a process or delight with an experience. Businesses are building the tools for empathic diagnosis, empathic response and instant and dynamic updating. They’ll become highly effective at hyper-personalization.
This is the realization of the dynamic of customers bringing innovation and desirable experiences into being. Through the responsiveness environment, customers will figure out how to generate a desired experience and achieve it through the adaptive dynamics of the digital assistant.
An example of this principle in action is 3D printing, which is the capacity for an individual to self-manufacture. The implementation of individual consumer desire (“I want what I want when I want it and how I want it”) is made materially operational, whether in the form of 3-D printed buildings, machines, or clothes, or food.
Speed of change and the art of possible.
The acceleration of the rate of speed of change has been identified as a challenge for firms, but in the new customer-led digital age, the acceleration is in the hands of the customer. When what customers want is more and more attainable, they will learn to ask systems for what they want and the system will understand enough of what’s available from all potential sources to recommend and bring it to that customer. The system will assemble sub-components into a solution. For example, if a customer wants a mirror with a digital camera in it and an audio source of weather information, powered by DC because they live in Denmark, and that particular configuration is not currently offered, a digital assistant will specify it from available parts and build a personalized sku, deliverable two days from now at a specific price. That’s the art of possible: not what exists now, but what it is possible to assemble quickly.
Asking the right questions
The future lies in getting better at prompting: asking the AI the right questions: Can I do this now? What is possible? The questioner dreams it up, and the system assembles the dream. Then, the organization implements the assembled solution in the firm’s environment and in the marketplace.
Copilot is a good early example of what’s possible – a tool that observes and takes information and comes back to you to say, ‘here are the activities at which the firm is not efficient that could be done much more efficiently.” For example, the AI detects that people are keying-in invoices, and the process could be automated. It provides the art of possible. It could do the same for customers and customer interactions.
Constructing the firm for the new environment
Today’s construct of the firm is:
The empathetic component – how do we create valued experiences for the customer?
The technical component – what do we need from a technical perspective to meet customer expectations?
The financial component – how do we operate profitably and efficiently?
Ask these questions of an AI and, ultimately, the AI will respond with a highly accurate recommendation of what company or brand to build. It has the universe of knowledge at its fingertips, with all customer and buyer data to reveal preferences and trends and desires. The best entrepreneurs will be the ones asking the right questions, while the operation of that business can be left more and more to the AI and the digitized firm. The AI will build a digital CEO that can develop a market analysis and a business plan, perhaps raise capital against that plan, sign up the initial customers, design the products and aesthetics, and the customer experience. Over time, the digital sapiens species footprint will expand, and the homo sapiens species footprint become more specialized and focused. Competition will boil down to building specialized digital CEO’s. The software might be open source and free, and the data proprietary, so the added value is in designing better digital CEO’s from better data sets.
How? By asking better questions. McKinsey, for example, has decades of data and intelligence about good decision-making and what’s associated with it. That could be the input data for building a digital CEO. WPP has data about great marketing campaigns and great marketing agencies and could create great marketing CEO’s. Digital doctors will out-perform non-digital doctors because of the mass of data around medical history, practice, research and so on.
Management will become less and less relevant because digital sapiens can do more and more of it. Entrepreneurship – creatively asking the right questions and imagining the future in a better way than others – will become more and more relevant.
https://hunterhastings.com/wp-content/uploads/2024/08/New-Website-Cover-Design-TVC.png4581280Hunter Hastingshttps://hunterhastings.com/wp-content/uploads/2021/03/hh-logo-blk.svgHunter Hastings2024-08-28 23:25:512024-08-28 23:25:53The Value Creators Podcast Episode #46. Digital Enablement: Customer-Led Business, Subjective Value, and Empathy with David Kramer
