Is Technology A Disruptor Or An Interrupter?
Change is never ending for the contemporary business. And you can blame technology, says Ben Edwards, vice president at payments company PayPal. Organisations have no choice but to keep pace with the rapidly changing consumers behaviours.
But introducing technology that advances the company without interrupting the core business is challenging.
Case in point is 1-800-Flowers, a 35-year-old company that started as a single flower shop in New York. In 1986, Jim McCann, owner of the Flora Plenty florist, became one of the first retailers to use a 24/7 toll-free telephone number when he purchased the number 1-800-Flowers. It was clearly a successful strategy and from those simple beginnings, there are now 15 brands within the portfolio. These range from cookie company Cheryl’s to gift basket service 1-800-Baskets.
Today, the business continues to invest in new technology. Amit Shah, senior vice president of marketing, says: “One of the great privileges of working for 1-800-Flowers is that early adoption and being on the cutting edge of innovation is a DNA level element of this company.”
The business was quick to act whenever new technologies became available. For example, 1-800-Flowers was one of the launch partners when Facebook released Facebook Gifts in 2012, a service the platform closed two years later. Last month, 1-800-Flowers was one of a handful of companies partnering with Apple to launch Apple Pay on the web. More recently, it released a module built on top of IBM’s artificial intelligence platform Watson called Gifts When You Need or GWYN that provides consumers with purchase recommendations based on multiple data points.
But while 1-800-Flowers may be ahead of the tech curve today, that doesn’t mean it is free from disruptive risk.
And that is a familiar lesson for PayPal.
Founded in 1998, PayPal stole an early march on the payments space well before banks and mobile handset manufacturers finally struck back, and new app developers entered the fray.
According to Edwards, “PayPal is only 18 years old and it is being profoundly disrupted by many, many, many different sorts of payment companies, device companies, e-commerce companies, banks, local companies, global companies. If you paint the payments landscape it’s a roiling ocean of disruption.”
He draws a parallel with his former career as a reporter, editor and Executive Vice President for The Economist. “That’s a business model that was pretty stable for about 500 years, based on the invention of the book and the printing press. The product itself was very stable. We all knew what a magazine was. Then suddenly with the advent of the internet and digital publishing and digital media, the entire product is in complete flux. We don’t know what it is. We don’t know how it works. We don’t know what customers want from it.”
The current state of the publishing industry, Edwards believes, is indicative of 21st century business where business models are constantly challenged. He says, “We are on a journey of continuous improvement. It isn’t like we’re going to go through a period of transformation and then emerge from the other end with the solution. We’re going to transform from a company that doesn’t transform into a company that transforms continuously. That is the new state of being.”
Given this, Edwards says, “There’s a need, in part, to disrupt your own business.”
It’s a fine line, however, between disrupting and interrupting the business with the introduction of tech. Edwards says this challenge requires a new breed of leader.
“The successful manager of this sort of organisation is a very different manager from the successful manager of the sorts of prior organisations where the product and value proposition was more static,” he says. “We were focused on quality and scale. We need to be focused on cultures and teams that enable continuous learning or, as I’ve begun thinking of it, as being growthful. As managers, how do we help people to want to point themselves at continuously upgrading and learning new skill sets and how they work with colleagues to evolve the product and the company?”
While fostering an environment of constant evolution is one thing, knowing when to jump to the latest platform or offering is something else entirely.
Three steps
For instance 1-800-Flowers’ Shah says: “You have to try things out first, jump in quickly. We have a three-step process of asking ourselves that question. The first question we ask is, does it have enough scale to be a testable hypothesis? For example, if you say that virtual reality is gaining a lot of traction, the question we would ask is, ‘Are there enough headsets in circulation that you can get ethnographically driven real consumer data?’”
Shah also says it is important to question whether a piece of technology will significantly improve the user experience.
And finally, is it something that might deliver a basic return on investment goal.
In the middle of all this are the people implementing the technology and Shah says they cannot be overlooked. He says: “On a human level, it is still a daily challenge because a lot of people under appreciate that innovation is not just opportunity creating. It is also anxiety-inducing to a great degree because you are now asking teams of people who might have devoted significant cognitive and learning ability to build you the best in class experience. Suddenly you come in and try to disrupt that or push it aside.”
Edwards believes this state of being – being open to constant change – in an organic property within us that’s been suppressed. Perhaps the greatest test for businesses in the 21st century is unlocking this ability to enable technology to disrupt without interrupting.
This article first appeared on B&T’s sister business site www.which-50.com and was written by the editor, Andrew Birmingham.
Latest News
Sydney Comedy Festival: Taking The City & Social Media By Storm
Sydney Comedy Festival 2024 is live and ready to rumble, showing the best of international and homegrown talent at a host of venues around town. As usual, it’s hot on the heels of its big sister, the giant that is the Melbourne International Comedy Festival, picking up some acts as they continue on their own […]
Global Marketers Descend For AANA’s RESET For Growth
The Australian Association of National Advertisers (AANA) has announced the final epic lineup of local and global marketing powerhouses for RESET for Growth 2024. Lead image: Josh Faulks, chief executive officer, AANA Back in 2000, a woman with no business experience opened her first juice bar in Adelaide. The idea was brilliantly simple: make healthy […]
Is Meta’s New AI Chatbot Too Left-Wing?
Meta's chatbot accused of being left-wing after being caught wearing a Che Guevara T-shirt & listening to Billy Bragg.
TV Ratings (23/04/2024): Why Did No One Tell Angela That Farmer Wants A Wife Is Set On A Farm?
As wonderful as this headline is, let's face it, we all know an 'Angela', don't we?
PubMatic Unveils New AI Partnership To Turn Social Posts Into Ads For Any Digital Channel
Here's some nifty tech for turning social posts into ads. Assuming said posts aren't one-star character assassinations.
Intuit Mailchimp Makes A Splash With Its First Australian Brand Campaign
Ever laugh along at a gag you didn't get so as not to appear dumb? Get ready for more feigning with this new work.
GumGum’s Rob Hall: Advertisers Can No Longer “Rely On Binary Descriptions” Of Consumers
If anyone's got their finger on adtech's pulse, it's Rob Hall. He also avoids using the good paper in the office printer
Mastercard Nabs Florencia Aimo From Marriott International
Marriott International's Florencia Aimo jumps from the hotel business to the exploitative credit card one.
Bastion Agency Appoints Cheuk Chiang As New ANZ CEO
Cheuk Chiang takes the reins over at Bastion Agency. But not the rains down in Africa.
Spotlight On Sponsors: Major Sponsorship Wins After A Disappointing Week In Sport
B&T continuing our deep dive into local sport sponsorships & that's despite not a single offer of a free ticket as yet.
Macca’s Marketing Director, Samantha McLeod On Big Mac Chant: “What Was Once Old Is Now Cool Again”
Macca's using the power of nostalgia in latest Big Mac campaign. Well, only for those who've ever eaten one sober.
World Premiere Of Midnight Oil: The Hardest Line To Open Sydney Film Festival 2024
Oil's biopic to open Sydney Film Festival. Here's hoping Molly Meldrum will take his pants down at the premiere.
Entries Are Now Open For The 2024 Brandies, IntelligenceBank’s Annual Brand Marketing Awards
The Brandies are, of course, a prestigious marketing gong and not the mystery tipple favoured by nannas everywhere.
The Fred Hollows Foundation Appoints Ardent For PR
Yes, we all like to have a joke at PR's expense. But sometimes it does important work, like this.
AI, eCommerce & Marketing Specialists Are In Increased Demand By Businesses, New Data From Fiverr Shows
Has your philosophy & anthropology degree left you with nothing but a huge HECS debt? Here's what you should've studied.
Perth’s First 3D Anamorphic Billboard Arrives Courtesy Of oOh!media
Do you love a buzzword? Now you can add anamorphic to the list as it relates to billboards, not a colleague's ears.
MasterChef Australia & Crown Resorts Launch Unique Dining Experience With ALUMNI
A pop-up restaurant staffed by MasterChef contestants! That's fine dining prices for first-year apprentice chef cuisine!
Amanda Laing Announces Resignation From Foxtel Group
Foxtel's chief commercial & content officer heads for the exits. Read nice things the bosses said about her right here.
The Lost Letters From Our Diggers: News Corp Unveils ANZAC Day Special
It's nice when brands respectfully acknowledge ANZAC Day.
Howatson+Company Acquires Akkomplice
Large indie acquires a slightly smaller indie. Much like a shark eating a tuna, just with less thrashing and blood.
Google Delays Third-Party Cookie Deprecation Again
In good news for the sale of picture library biscuit photos, Google continues to tease over the end of cookies.
Education A Low Priority For Aussies More Concerned With Cost Of Living Forethought Study Reveals
Study finds Aussies cutting back on education due to cost of living. Booze & Uber Eats sales remain largely unaffected.
“I’m Still The Same Person That I Was”: Rikki Stern Says “Fucc It” To Cancer Stereotypes
B&T always happy to promote the anti-cancer cause. Even brands that massively overdo it with the hot pink.
The Unapproved Climate Certification Allegedly Causing Mass Greenwashing
Are you left flummoxed in the canned tuna & free range eggs aisle? Just wait till this green certification gets up.
TV Ratings (22/04/2024): Fans Mock “Over The Top” Reaction To New MasterChef Judges
MasterChef returns for its 2024 season. B&T stands by putting peppercorns in Gravox & no one will be any the wiser.
Dentsu Restructure: Muddle, Harvey & Johnston Take Leadership Baton As Bass & Yurisich Exit
A large broom has swept through Dentsu's local ops this morning, taking with it some big names & the air con's cobwebs.
Industry Shares Trends Shaping The Industry This International Creators Day
B&T's asking adland creators to reveal their top trends. And it's not good news for your Jenny Kee cardigan collection.
Mable Extends HOYTS Sensory Screenings Partnership
Mable has extended its HOYTS sensory screening partnership. Vigorously defends its two-star Oppenheimer review.
Orphan Launches ‘They Need Our Help. We Need Yours’ For Children’s Cancer Institute
Anything to do with childhood cancers has B&T's 110% support. That said, we do ignore the red meat & alcohol warnings.
Smile Team Orthodontics & Keep Left Collaborate On Smile-Inducing Campaign
As parents would attest, given the cost of orthodontics you'd expect this campaign to be a lavish production indeed.
Opinion: How Video Calls Neglect Learning Diversity
Need an excuse to duck out of a video call this arvo? Show this to your boss.
DoubleVerify Achieves First-Of-Its-Kind Responsible AI Certification From TrustArc
DoubleVerify receives responsible AI certification. However, not its robotic vacuum that's been seen menacing the cat.
Smile For A Good Cause: The Social Media Campaign Giving Back To The Community
Are you known as the office Austin Powers? More for you teeth than shagability? Get snappy new fangs with this news.
Elon Musk Mocks Albo After ESafety Wins Court Injunction Against X
Albo's 2024 from hell continues - Rabbitohs in crisis, down in the polls and now feuding with world's richest man.
Real Estate Developer In Hot Water Over “Sexually Exploitative” OOH Campaign
Real estate agents again tops in the 'least trusted profession' polls, nudging used car salesmen & ad creatives.
Epsilon’s Shane Hanby: Post-Cookie Era Relies On “Teamwork” Between Brands, Marketers & Tech
This pro predicts more "teamwork" in a post-cookie era. Which spells bad news for the uncooperative or plain stubborn.