Why Every CPG Brand Needs a Comprehensive Data and Analytics Strategy

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CPG Data as an Asset

As a Consumer Packaged Goods (CPG) professional, you know that data is an essential asset for staying competitive and driving business growth in a rapidly changing marketplace. Having a clear and comprehensive data analytics strategy is vital to making the most of this asset. It should guide you in collecting, analyzing, and interpreting data to support your business objectives. An investment in data analytics can be a great way to leverage customer insights and Key Performance Indicators (KPIs) to gain an edge over other companies in the CPG industry. With the right data strategy in place, you can uncover valuable insights that can help you drive revenue, improve customer loyalty & stickiness, and gain a competitive advantage over your competitors. Data analytics is critical for any CPG company looking to stay relevant and maximize its potential.

Data Strategy is about Actionable Insights

But having a data analytics strategy is about more than just collecting and analyzing data. It requires an up-to-date knowledge of available data sources and the ability to leverage them effectively. This means integrating internal and external data sources for CPG companies to get complete visibility into their operations. This allows them to take actionable insights from the data to help them drive business growth and stay ahead of the competition. By leveraging comprehensive, advanced analytics, CPG companies need to ensure they make the most informed decisions to keep up with the continuously changing market.

Potential CPG Brand Use Cases

With the right data, CPG companies can optimize marketing campaigns, identify consumer preferences, generate personalized campaigns, and accurately forecast product demand. This can enable CPGs to build stronger relationships with customers and boost profitability. The following are a few examples of how having a strategy for CPG can help:

  • Accurate forecasting is critical in the retail industry, allowing businesses to respond quickly to changes in consumer demand and adjust their production and distribution accordingly. By utilizing advanced forecasting techniques such as data analysis and in-store insights, businesses can ensure they are better prepared for changes in the market. With improved accuracy, retailers can quickly adjust their strategies to ensure they are always meeting the needs of their customers.
  • By optimizing your supply chain and inventory management, siloed processes can be broken down to create a more cohesive interdepartmental collaboration. This will result in increased efficiency and reduced waste, improving product availability for the customer. Ultimately, this will help create a more successful business by increasing customer satisfaction and revenue.
  • Analyzing customer data and understanding consumer preferences and behaviors are essential for businesses to create tailored marketing and customer engagement efforts to reach their demographic. Utilizing personalization is key to creating effective marketing campaigns that will resonate with customers and meet their needs. Gathering and studying customer data is an important first step in creating successful marketing initiatives that are tailored to the needs of each consumer.
  • By strategically leveraging sales data and consumer trends, businesses can accelerate the development of new products and services that meet the needs of their customers. This will ensure that companies remain competitive in their respective markets while also helping to increase customer engagement and loyalty.

Conclusion

CPG brands need to become data-driven and have a robust data analytics strategy. With such a strategy, they can gain vital opportunities that help them maintain a competitive advantage and drive business growth. To maximize the value of their data and remain ahead of the competition, CPG companies need to become proactive with their data analytics strategy and create an environment where data is leveraged to identify patterns, trends, and insights that can help them make informed decisions.

The 6 Categories of Data

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Data is everywhere and comes in many different forms. Data might live on a spreadsheet, be stored in a database, or reside somewhere in the cloud. It can also take various visual representations such as charts, graphs, and statistics. More importantly, data has inherent properties that cause it to fall into one of six unique categories. Each data type serves its own purpose and can be used independently or in combination with other data for added value.

To understand how each type of data can best be put to use, consider the following six categories:

Reporting Data

Reporting Data is any data organized to provide intelligence to the business. Reporting data may be used in either descriptive or diagnostic research. Reporting data is produced by combining other types of data, such as transactional data, master data, and master reference data.

Transactional Data

Transactional Data is the largest volume of data an enterprise will create. Transactional data represents business events or “Verbs”. For example, when a customer “purchases” a product, that transaction creates Transactional Data. This data can be stored in numerous applications (CRM, HR, POS, ERP).

Master Data

Compared to Transactional Data, Master Data can best be described as the “Nouns”; or as Places, Parties, and Things. These are customers’ names, materials used in creating products, or warehouses/store locations. The importance of Master Data should not be ignored. Because various functions can author Master Data for their specific use case, achieving enterprise-wide consistency and governance can be extremely difficult. This is why it becomes vital to invest in a Master Data Management platform to ensure that Master Data remains reliable when tackling any significant data strategy.

Reference Data

Reference Data is a subset of Master Data (often referred to as Master Reference Data). It refers to concepts that affect a specific business process or provides additional clarity. For example, the status of orders (created, approved, rejected, etc.) is an example of data that affects business processes. At the same time, employee job position is an example of an additional standardized semantic that clarifies a data record (junior, senior, VP, etc.).

MetaData

MetaData, in its simplest terms, is Data that describes Data. File size, file type, create date, and author are all examples of MetaData.

Golden Data

As you strive to gather insights from data, the key is reliability. When a database has been cleansed, consolidated, and validated with the original source it is said to be “Golden”. This data can have tremendous value to an organization because it represents a single version of the truth or a 360-degree view of a customer. Users of this data can trust it and the insights inferred from its analysis.

Conclusion

When it comes to data, a number of different types serve different roles within an organization. It is essential to determine which type of data you will use and how you will use it. And remember when possible, “Stay Golden Ponyboy”.

Reference material: https://www.semarchy.com/blog/backtobasics_data_classification/

4 Ways That AI is Disrupting the Customer Experience

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When most people envision the future, they imagine things like flying cars, sleek, techno-enabled cities, and clothing that doesn’t use zippers or buttons (for some reason). However, we’re currently living in the sci-fi future that previous generations could only dream of – all thanks to the growing prevalence of AI.

Fortunately, artificial intelligence isn’t the demonic bogeyman that pop culture has made it out to be. No sinister robots, no global network trying to kill all humans. Instead, machine learning has enabled businesses and other organizations to improve the customer experience. In some cases, these advancements have happened so seamlessly that it’s hard to imagine how we functioned before AI.

So, with that in mind, we want to take a look at how artificial intelligence is disrupting the user experience – both today and into the future.

#1 Improved Personalization

Modern consumers are much savvier than those from previous decades and generations. Because customers have so much information at their fingertips (i.e., product reviews and competitor pricing), they want authenticity more than anything. Not only does this mean transparency from the business, but it also includes customization. Niche marketing is much more productive these days because your message can resonate better with smaller groups.

AI is leading the charge in customer personalization, thanks to a variety of advancements and techniques. One of the most valuable has been predictive marketing. As companies gather data about shoppers and their habits, they can craft unique ads and promotions based on behavior.

Best of all, because customers see that their interests and values are addressed, they are much more likely to develop a stronger bond with a brand. Consumer loyalty is at an all-time high, thanks largely to AI.

#2 Better Customer Response

Gone are the days of calling a business and waiting on hold for hours on end. While this shift has made it harder to write sitcom episodes, consumers everywhere are breathing a sigh of relief. Artificial intelligence enables brands to respond to customer queries and complaints, thanks to tools and systems like:

  • Self-Service – Shoppers who don’t want to deal with a pushy salesperson can navigate menus and options much faster with a virtual assistant. Advanced AI can also learn to respond to various questions and provide answers.
  • Multi-Channel Access – when a business can use machines to respond to customers, it’s easier to “staff” things like instant chat, text, and email. Consumers can reach out through various channels and get an answer, which creates a better experience overall. Better yet, virtual assistants never have to go to sleep, so a business can always have “someone” online and ready to chat.
  • Programmed Positivity – even the best call center employee can get annoyed and frustrated at times. AI, however, cannot. Brands never have to worry about an irate customer creating an issue or demanding a refund.

#3 Seamless Integration

Although smart homes are not the norm now, they will be in the future. The Internet of Things (IoT) enables consumers to connect a wide array of products and systems within their homes for maximum convenience. Assistants like Alexa or Google Home can control everything from lights to door locks to the ambient temperature.

Beyond smart homes, AI assistants are also being utilized by other businesses. For example, customers can ask Alexa to schedule a bank transfer or order products online. In the future, almost everything can be run through these systems, allowing users to have a fully immersive AI experience. Rather than doing things themselves, they let machines take care of the details.

A side note on IoT integration, though – businesses will need to figure out how to merge convenience with privacy concerns. Currently, we can’t have it both ways, as AI can’t learn everything about a person while keeping that information private. As data leaks and ID theft continues to grow, these issues will become more and more prescient.

#4 Improved Decision-Making

Machine learning is only becoming a thing because of big data. Living in a high-tech world means a wealth of information – too much to be processed manually. Fortunately, AI can do it in a fraction of the time, providing digestible and easy-to-understand analytics.

For businesses, this data mining and analysis helps them make better decisions. Rather than going off of gut instinct or intuition, companies can utilize AI to make informed judgments. While this process isn’t perfect yet, it will only continue to improve as the technology does.

In the future, brands can avoid massive failures and setbacks, all thanks to AI helping them understand everything from consumer trends to industry changes.

Bottom Line: AI is Shaping How We Live

No matter what, everyone living in modern society is benefitting from AI in some fashion. As brands continue to embrace the benefits of this technology, our lives will only rely on machines more and more. Thankfully, based on current trends, we shouldn’t have to worry about a robot uprising (for a few more decades, at least).

Upskill Employees on AI to drive Innovation

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Companies are quick to hire full-time data scientists to solve their most complex problems when it comes to data innovation. The reality is that the success of implementing emerging technologies can lie with your current internal employees themselves.  One way to improve your success rate is by imparting your employee the requisite skills required to understand data and how to use it in their daily work life. Not only is upskilling your existing employees a benefit to the organization, but it also offers employees the opportunity to future-proof their careers.

Data Scientists are not the Only Answer

Even though the term “Data Scientist” has entered the daily vernacular of business terms, there is still no agreed certification that demonstrates qualification for the role. Most businesses hire a single data scientist (or small team) with the assumption that they have the means to understand the intricacies and nuances of the company because of their advanced statistical expertise. But to support a successful data initiative, subject matter experts will also be required.

This subject matter expertise will have to come from your existing internal employees. No one knows better than these employees the patterns of your business, where to find relevant data sources, and why specific levers can influence an outcome.

The Current Data Gap

So why are organizations looking externally for these skillsets? In short, employers are not developing the tools or providing the opportunities to inspire, motivate, and incentivize their workforce to learn and utilize these skills.

To allow your employees to take advantage of AI and machine learning benefits, you must implement training programs that will educate them on AI and machine learning principles. One way to get employees to adopt AI is by letting them work on problem-solving and analysis challenges cross-functionally. However, leaders need to recognize that many of the first ventures into Data Science will not materialize into considerable benefits. But what will be gained is an opportunity for the employees to become comfortable with the concepts and methodology that will eventually lead to sustained growth and profitability. A key element of improving your Analytics maturity lies in building a culture that supports experimentation and failure.

Conclusion

According to QuantHub, some 35% of organizations surveyed said they anticipate having the most difficulty finding appropriate skillsets for data science roles. And the problem will not improve anytime soon. For this reason, businesses need to look towards the same people they are relying on to handle today’s challenges and prepare them with the capabilities to address tomorrow’s as well.

 

 

 

 

What are the Different Job Roles within Artificial Intelligence?

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Artificial Intelligence (AI) is everywhere around us. It has already been widely integrated into our daily lives by the smartphone in our pocket and the Apple Watch on our wrist. This technology has become an integral part of our everyday lives, and we are now interacting with it regularly. We are already living in the age of AI, which is projected to continue growing at an exponential pace. In turn, the number of job roles and the type of skills necessary to support AI initiatives at the enterprise is also increasing. The days of everyone calling themselves a “Data Scientist” are almost over, so let’s take a look at the various roles within AI.

Software Engineer

One pivotal role when discussing AI is the role of Software Engineer. At its core, AI requires data to perform – and without systems to capture this data (consistently and reliably), no algorithm or fancy model will provide valuable insights. Software Engineers are the first line of AI – developing tools and systems to make it easier to build machine learning and deep learning-based algorithms. Social Media apps, sensors, mobile apps, Internet of Things (IoT), analytics tools all have the potential to capture this valuable resource. These software applications (internal and external) have the power to make a new AI initiative within a corporation successful or painfully troublesome.

Data Engineer

If producing and capturing data is pivotal, then finding it and accessing it is indispensable. At the most basic level, the Data Engineer is responsible for analyzing and cleaning the data gathered from the various systems and tools used across an ecosystem. The Data Engineer is the all-around data specialist that prepares data and ensures that it can be consumed and utilized within the organization. By extracting information from various systems, transforming/cleaning data, and combining disparate sources to form a functioning database – the data engineer is the “hidden jewel” in AI. Often these individuals need to have an in-depth knowledge of the business processes that enable them to find hidden data treasures.

ML Engineer

Moving from simple data to predictive models is where the Machine Learning (ML) Engineer shines. The ML Engineer is responsible for developing and training models and algorithms using advanced statistical techniques and data science skills. They identify patterns in historical datasets, find the most influential factors and attributes to a particular outcome, and experiment with feature engineering to improve these models’ scalability and deployment. A discounted responsibility of the ML Engineer is related to business consumption. If the predictive model has exceptional predictive power, but business users are not utilizing its recommendation – “well if an algorithm makes a prediction in the woods and no one hears it…”. The ML Engineer must create the most accurate model possible using their advanced analytical skills and the best method for business users to trust and use the insight to run and optimize their business results.

AI Business Strategist

We can now capture data, access data, and even make unique predictive models, but just because it can be built – should it be built? The AI Business Strategist is an often-neglected role when enterprises are instituting AI for the first time. This role is less about the technical aspect of AI and more about the softer side of AI. The AI Business Strategist should be a senior individual who understands what AI is capable of (Art of the Possible) and recognizes the business impact it can have across an organization (Transformational). They know the business goals and can garner executive sponsorship to experiment with minimum viable products (MVP). They have the business acumen to identify and prioritize the first AI projects an organization should pursue based on their analytics maturity and data fluency. In the simplest terms, an AI Business Strategist can help an organization launch successful AI initiatives that can demonstrate positive ROI.

Conclusion

When considering the ongoing progress of AI within the enterprise, it’s essential to take a step back and look at the big picture. AI is the latest technological advance that’s changing the way business is being conducted today. Companies are leveraging AI across a broad spectrum of functions, enabling them to provide a superior customer experience and deliver a higher return on their investment. Organizations must understand how AI will impact many of the current jobs and ensure they consider all the roles that will enable a successful AI implementation.

 

Data is Not the New Oil

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Perhaps in the past few years, you have heard the adage “Data is the New Oil”! Given the exponential growth opportunities that are possible with Data, I can see why so many people have embraced this phrase. However, in a few respects, this could not be further from the truth.

Why the Phrase works

The phrase was first coined by Clive Humby in 2006. Michael Palmer expanded upon the quote to say that like Oil, Data is “valuable, but if unrefined, it cannot really be used”.

I grew up in the ’80s in Houston, TX, and from my earliest years, I was the biggest Houston Oiler fan (“Luv Ya Blue”), and at that time and in that city, you could see how Oil was King. Oil was lucrative, and fortunes could be made if one had the means to extract it, refine it, and find use cases for it (i.e., gas, plastics, chemicals).

Similarly, over the past decade, fortunes have been made by those savvy enough to do the same with Data. Today, the list of Fortune 500 companies continues to be disrupted by these businesses – Google, Amazon, Facebook, etc. So it is understandable why many continue to use the analogy.

Where the Phrase breaks down – Availability and Reusability

Availability

Oil is not available to just anyone. Companies with deep pockets have to scour the earth for it, and if you happen to live in a place that dinosaurs tended to frequent – well, then you are in luck. But if dinosaurs would not be caught dead in your neck of the woods (see what I did there), well, sorry no fortune for you.

Data does not have the same challenges. Data is everywhere and available to anyone that has the forethought and means to capture it. Individuals, Communities, and Organizations of all sizes have the potential to begin acquiring and leverage this valuable resource. Needless to say, collecting it is not always easy, and refining it does take a unique set of skills. However, Data is available across all geographies like Oil could never be.

Reusability

The other challenge with Oil is that it is a non-renewable resource. You use it once, then “poof” it’s gone. Sure, you could look for ways to increase the efficiency of its use, but it cannot be reused.

Data is not only reusable; the value that you can extract grows the more you use it!

The same datasets can be used across various functions, analyses, and predictive models. Combine one dataset with another, and you now have new insights that could not be leveraged before –> 1 + 1 = 3. With the proliferation of Artificial Intelligence, your ability to reuse the Data is imperative to identify patterns and learn from historical events.

Conclusion

Overall, I understand why people continue to use the phrase “Data is the new Oil.” But because of its Availability and Reusability, Data can be much more lucrative to many more organizations, communities, and people than Oil alone could ever be.

Unfortunately, I do not see a future where Houston will rename their NFL football team the Houston “Data.” Perhaps the Houston “QuantJocks”?

How Artificial Intelligence is Redefining Human Resources

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When most people think about artificial intelligence (AI), they imagine something like a robot that can learn, possibly to humankind’s detriment. However, these days, AI is already becoming integrated into our daily lives, albeit much less drastically than an army of androids taking our jobs.

While artificial intelligence has already demonstrated a lot of potential across multiple functions, today, we’re going to focus our attention on one particular industry – human resources (HR).

The Current State of AI in Human Resources

On the surface, it seems a little ironic that computers would be taking over elements of a job that’s all about human interactions, but when you dig a little deeper, it actually makes a lot of sense.

In fact, relying on AI for data management and analysis enables HR personnel to spend more time interacting with people, meaning that technology is helping bring people together, not tear them apart. Let’s see how it works.

Addressing Employee Questions

There are certain times of year that everyone is clamoring for time with their favorite HR generalist (i.e., Performance Reviews, Annual enrollments).  And for many HR generalists, the same questions are asked over and over again, though perhaps phrased a bit differently. Well, enter the Virtual Assistant (or Chatbot or Virtual Agent)!

No matter what you call it, Virtual Assistants (VA) have been designed to understand human language using artificial intelligence.  These VA’s can be trained to understand multiple variations of particular questions and offer prescribed answers to help address employee’s needs promptly and accurately. In addition, VA’s do not require sleep or rest, so if an employee needs help at 1 am, their VA is ready and willing to assist.

Already organizations are deploying VA’s to help employees answer questions concerning health insurance needs, freeing up valuable resources to address higher priority tasks.

New Age of Recruitment

When trying to sift through dozens (or hundreds) of new hire applications, much of that time is wasted. Either you’re spending time looking at candidates who don’t fit your needs, or you are taking significant time categorizing those that are qualified.  This does not include the time necessary to correspond with potential candidates and secure interview times.

What if a computer system could handle all of that for you? While it is not recommended that you solely rely on an AI to choose your next hire, AI can help narrow the field by looking at keywords in a cover letter or resume (using techniques such as Natural Language Processing – NLP) and comparing them to the job description. AI has also been used to help augment your job description so that it’s more accurate to what the position entails. Over time as the system is able to collect more data, the predictive models will improve in accuracy.

With AI, recruiting new people is no longer a time-consuming hassle. It can be streamlined, and allow you to find qualified applicant in a fraction of the time.

Operational Efficiency

As you can see, there are numerous ways that organizations are already applying artificial intelligence to the workplace. Not only does it have the potential to effectively address employee questions and improve the efficiency of the recruitment process, but it can optimize many HR operations as well.

The data-entry or analysis task being performed manually (i.e., managing an employee’s profile, filling out paperwork, quarterly employee surveys) can all be done with AI. What can you do with this kind of power?

Predictive Models

The other side of artificial intelligence (and potentially its most powerful side) is that it can help you make predictions and proactively address issues. In human resources, this can be done by analyzing data about particular employees and optimizing their workflow. You can predict how well an employee will do on a particular task, as well as pair groups based on how well they work together to optimize their performance even more.

Predictive models using advanced analytics techniques like Machine Learning or Deep Learning do require large amounts of data. This data could come in the form of surveys and questionnaires, but also could be gathered based on internal tools (i.e., compensation tools, CRM databases, learning management systems).  Companies are already beginning to leverage these internal sources of data to help improve employee engagement and overall employee satisfaction.

Overall Benefits of Artificial Intelligence in HRTech

Remove Bias: if done properly, AI has the potential to remove bias that may have been historically impacting disadvantaged populations. People can advance or prosper based on merit, not personal prejudice.

Optimize Work Environment: when you optimize how people interact with each other based on AI models, you have the potential to increase productivity and creativity.

Enable More Human Interactions: rather than spending hours transcribing data and entering forms, HR generalists can spend more time engaging staff and supervisors to ensure tools and resources are being leveraged to create a supportive workplace.

Downsides of AI

While artificial intelligence has a lot to offer, it’s far from perfect. Let’s look at a few of the drawbacks of implementing this technology.

Still Learning: even the most advanced programs are only as capable as the training data that was used to train them (garbage in, garbage out). Generalized AI is not possible yet, so there are many limitations, and you do have to supervise the process a lot of the time.

Over-reliance on AI: at this stage, information that is provided by a cognitive system, like a prediction or recommendation, is just information. People with their vast amounts of experience and context are still necessary to fulfill the gap in judgment that AI systems lack.

Bottom Line

Overall, AI in “human” resources may sound like an oxymoron, but it’s the wave of the future. As HR technology continues to improve, you can expect to see more of these programs installed and implemented in workplaces around the world.

 

 

 

 

Why being a Data Scientist is so Cool

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Data scientists are the next generation of analytical experts, having evolved from statisticians and data analysts in response to the growth of big data storage, IoT devices, cloud computing, and improved algorithms. It’s a marriage, consisting of the IT and business realms.

Early in my career, I became a Six Sigma Black Belt and learned early the importance that data could have on helping solve some BHAGs (Big Hairy Audacious Goals).  By becoming a Black Belt, you are required to understand a multitude of statistical tools that enable you to decipher anecdotal from impartial. However, at the time, terms like “Big Data” and “Internet of Things” had not yet entered the lexicon, and as a result, predictive algorithms had not yet reached the level of accuracy we are witnessing today.

What is a Data Scientist?

A data scientist must possess in-depth knowledge in the fields of science, mathematics, and coding. A data scientist is known to possess analytical skills, an insatiable curiosity, and a toolkit that allows them to interpret vast amounts of data to help test hypotheses that can improve a business’ bottom line. Think of them as a scientist without the lab coat, but with a t-shirt and sneakers.

 Scientist – Lab Coat + T-Shirt + Sneakers = Data Scientist

Of course, that is a broad generalization of the individual and overview of the hard skills required for the profession. But not entirely wrong.

A data scientist assists a company’s operations to help them gain a formidable edge over the competition. Analyzing digital data streams in a company’s website, improving upon existing data collection procedures and creating systems to track anomalies are all examples of the duties of a data scientist.

Why Being a Data Scientist is So Cool

There is a huge demand for Data Scientists these days. In fact, demand has surpassed supply putting the median base pay for a mid-level data scientist at $128,000. Not only are Data Scientist well compensated, Glassdoor recently named it the Top Job for 2019 in America, with job satisfaction scores of 4.3 out of 5.

A Challenging Profession

Although the skills necessary to succeed in the role are lengthy, attaining a thorough understanding of the job is not an insurmountable feat. In my experience, a good data scientist not only needs to comprehend the methods to mine data, wrangle data, visual data, and model data but also possesses the communication skills necessary to work with their business partners to deploy models that will have the largest impact on the organization.

Is Data Science for You?

The skills mentioned above may seem daunting; however, it’s more of a matter of learning the skills as opposed to being born with them. If you are always analyzing situations and calculating the odds in a game of chance, this might be a great career for you.

However, I will caution anyone that is considering this career path; it requires continual self-learning. Data Science is a new discipline, and there are often multiple ways to solve the same problem. The tools, resources, algorithms, and programming languages are in constant flux. And although there are countless educational paths available for people interested in learning these skills – there is no governing body or one formal path to certify your education.

And as I mentioned above, a fully underestimated skill for any successful Data Scientist is communication. The ability to work with multiple functional areas of a business and tell a story with data can be a differentiator for you.

If you’re committed to lifelong learning, and you find joy in the process of developing your skills, the challenges and opportunities faced in this field could be right up your alley.

Have you considered a career as a Data Scientist?

If so, what is preventing you from taking the plunge?

 

Resources:

https://www.cbsnews.com/news/the-50-best-jobs-in-america-for-2019-according-to-glassdoor/

https://datasciencedegree.wisconsin.edu/data-science/data-scientist-salary/

 

 

Top 5 Qualities of a Successful “Intrapreneur”

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There is a growing trend in the business world of a new and unique type of entrepreneur. These individuals may never have run their own independent organization, but they are exceptionally skilled at navigating the waters within your company. Dubbed “intrapreneurs,” these professionals have gained the skills necessary to meet and often exceed expectations by applying the techniques and methods of entrepreneurship to innovate your company as opposed to striking out on their own.

Intrapreneurs behave and plan as though they have an ownership stake in the business, but they may not be compensated beyond their existing income. So what sets an individual apart as an intrapreneur? Furthermore, how do you recognize and continue to develop the characteristics that have served your budding intrapreneurs so well already? There are 5 essential characteristics to any intrapreneur, and developing these characteristics is a surefire way to improve the overall health of your business now and in the future.

  1. Money Is Not Their Endgame

One of the most common shared characteristics of intrapreneurs is their recognition of the concept that money is not the be-all, end-all of any business endeavor. Obviously, they are working for money and most likely recognize both its importance and value as an economic driver and a resource that leads to success. Where they differentiate themselves is that they put the work in and apply themselves in such a way as to demonstrate that they are indispensable. This proves a sharp contrast with many non-intrapreneurs who are always looking to showcase the non-economic value they believe they add, as opposed to actually demonstrating the economic contribution of their work. Intrapreneurs recognize that you don’t get measured on the effort, you get measured on the results.

  1. Self-Motivation Is A Core Value

It is rare for an intrapreneur to wait around to be told what to do: they find things that need doing and get them done. They come in every day to a list of what needs to be accomplished, and before they leave, they have tomorrow’s list ready to go. They possess intrinsic motivation to succeed, and they generally need very little in the way of supervision or direction. They embrace the challenge of innovation and the creativity necessary to execute.

  1. Possess Extraordinary Creativity

In addition to being highly motivated, intrapreneurs love to suggest new ideas and help develop ideas contributed by others. There is nothing they love more than being a part of creating something different, compelling, and innovative. Not only do they delight in creating new ideas and concepts, but they also delight in the hard work that makes those nebulous abstracts into concrete reality.  It is not uncommon for intrapreneurs to learn new skills or tools that will enable them to more effectively develop these creative ideas (at times learning externally).

  1. Masters of Balancing Multiple Projects Simultaneously

A defining characteristic of intrapreneurs is the ability to be intellectually and organizationally “light on their feet.” They know how to prioritize various tasks without assistance, and they are experts at keeping things moving on multiple lines of thought through multiple protocols and processes that govern their responsibilities and projects. They are on their “A” game at all times when it comes to keeping everything working at maximum efficiency and efficacy.  This is especially important if innovating falls outside of their normal duties or they have been given this responsibility as a stretch assignment.

  1. Understand the Value of Failure

Similar to entrepreneurship, bouncing back fast from a misstep in judgment or a bad call on a decision is at the heart of intrapreneurship. Intrapreneurs can assess what went wrong objectively, accept their responsibility for their part in the failure, and then get back to work making it right. Rarely does an intrapreneur meet with a setback they cannot recover and learn from independently. However, it is imperative for an organization to recognize the risks taken by these individuals and reward rather than penalize the endeavor.

Final Thoughts

Identifying the intrapreneurs in your company is key to your organization’s long-term health and success. Find and develop your people who are treating their work as their personal success depends on it and help shape them into the intrapreneurs that will secure your company’s future.

Are you identifying these “intrapreneurs” within your organization?

Are you giving them the skills needed for them to innovate?

Are your processes and systems geared to impede them or propel them?

Resource:

https://www.linkedin.com/pulse/top-5-qualities-successful-intrapreneur-frank-mendoza/?published=t

 

The 4 Benefits & 4 Steps to Become Intrapreneurial

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In the world of business and startups, most of us already know the term “Entrepreneur.” An entrepreneur is a person who is motivated to start a new business and propel it to success through innovation, hard work, and long hours (a lot of long hours).

However, one idea that is quickly spreading through the ranks of many high-profile companies is the term “Intrapreneur.” Rather than being a solo enterprise, the intrapreneur is part of an already-established business and leverages some of the same tools and techniques to introduce new products, services and/or processes that disrupt the status quo.

Because this idea is becoming so pervasive and disrupting the current corporate climate, we wanted to understand how it works, why it’s becoming so popular, and how it can benefit your company.

What is an Intrapreneur?

Having been both an intrapreneur for most of my career and now an entrepreneur, I know firsthand that you cannot equate the two. The most obvious difference centers on support structure and capital. Without going too much into the details, an entrepreneur often does not have the support structure or capital to pursue their idea; hence, the long hours mentioned above.  An intrapreneur, on the other hand, has the backing of the company for which they currently work. This process is different and unique compared to something like research and development on a new product line.

Intrapreneurs are encouraged to develop new ideas that could potentially become alternate businesses for the company. Whether it’s a brand-new product that can be sold outside of the current business model or a new app that can be branded and identified separately from the parent corporation, ideas that are fostered through intrapreneurship are often independent of anything else going on or disrupt how companies operate daily.

Why is Intrapreneurship Popular?

Technically speaking, this idea has always been around (Gifford Pinchot III coined the term back in 1978), but lately, it’s been gaining popularity due to the sexiness of entrepreneurship in our society. The concept of a go-getter who challenges the norms and standards of a company is nothing new; it’s just becoming more widespread, and companies have recognized that these individuals differ from their average employee.

But what is it about intrapreneurship that’s making it more prevalent?

Part of it is that many “new” corporations don’t have decades of history behind them. Without those strong roots, they are more willing to explore new ideas and experiment with them. Think businesses like Amazon, Google, and Salesforce.

Secondly, there are a lot of benefits to following this line of thinking. By incorporating intrapreneurs into your business strategy, you are more likely to adapt to any changing landscape and increase your chance of success.

The Benefits of Intrapreneurship

If you’re new to this idea of fostering innovation by disrupting your current business model, then it can seem a bit daunting. We’ll get into the nuts and bolts of how to do this process correctly, but we should first understand why it’ll help your company succeed in the long run.

Spurs Growth

Too often, large corporations start to rest on their laurels. The brand is successful, so why should we innovate and try something new? As the old saying goes, “if it ain’t broke, don’t fix it.” However, this complacency can become a problem as sales stagnate and the brand starts to underperform compared to projections.

With intrapreneurship, you are always going to foster creative solutions and expand your corporate model into new branches. As such, you are cultivating a network of growth that will keep your brand active and engaged with consumers, regardless of any changes that may be happening in society.

Creates Leaders

Intrapreneurs are natural leaders, inspiring those around them to succeed. By investing in these kinds of people in your current organization, you can benefit by allowing them to become the leaders that they were meant to be. Not only will this promote better cohesion within the company, but it will enable you to grow and expand because you now have leaders who are motivated and willing to help guide your brand to the next level of success.

Keeps Workers Engaged

Although some people are okay with doing the same thing every day for years (or decades), many of us get bored after a while and crave stimulation. By cultivating intrapreneurship, you can help stimulate changes that will keep your employees engaged. Rather than following the status quo and doing things the way they’ve always been done, you can disrupt the norms of your business and create excitement in the process.

How to Become Intrapreneurial

If you’re interested in following this change and seeing how it can benefit your brand, then it’s imperative that you do so in the right way. Rather than throwing money at the problem or letting your employees run wild, it takes some level of discipline to get it right. Before we look at the right way of doing things, let’s see some real-world examples for inspiration.

  • PlayStation: back when Nintendo dominated the gaming industry, it was a worker at Sony who realized the potential of a system that could produce more powerful and engaging games. Ken Kutaragi developed the first prototype while still doing his day job at Sony, which led to the first console.
  • Gmail: Google has always been keen on fostering intrapreneurship, and its flagship email service is a direct result of that kind of environment.
  • Facebook Likes: Another major player that thrives off of innovation and growth is Facebook, which hosts “hack-a-thons” for coders and programmers to develop new ideas. The “like” button was a direct result of one of these experiences, and now it’s become ingrained in our current culture.

So, how do you become intrapreneurial in your business? Follow these steps.

Step One: Have Open Communication with Employees

Workers who feel stifled creatively are going to develop other passion projects outside of work. However, talking to them can help you find out what they are interested in and will enable you to work with them on their next idea.

Step Two: Empower Them

In your communications, make sure that you remind your staff that their ideas are valid and worth pursuing. If they know that they can be innovative and creative within the company, they are more likely to do so.

Step Three: Engage Them Outside of Work

If employees are stuck doing the same things, they won’t get creative. However, you can stimulate their skills by providing engagement outside of their normal work parameters. If you want them to think outside the box, you have to take them outside the box.

Step Four: Invest in Their Ideas

Once you have something brewing, allow it to incubate for a little while to see where it goes. Even if it fizzles out or doesn’t work, it’s imperative that you enable your employees to pursue their creative interests along with their regular work. At some point, you will strike gold.

Bottom Line

As businesses have to adapt to a changing world, intrapreneurship is going to play a significant role in shaping the future. Fair warning, if your company culture does not embrace failure or punishes employees for taking risks, this attempt at fostering intrapreneurship will be met with disappointment.

Are you already nurturing your intrapreneurs?

Do you know the successful qualities of an “Intrapreneur”? Next week I will release a new blog on the 5 Most Essential Qualities of a Successful Intrapreneur. Can’t wait, hit me up and I will send you an advanced copy!

Sources:

https://en.wikipedia.org/wiki/Intrapreneurship