InsurTech book 2017: Vote & Share


Following the exponential growth of insurance startups (Insurtech) throughout last years, in this second edition of FinTech book a dedicated book focusing on Insurtech is planned in 2017 with the same formula of crowdsourcing.

Since the level of maturity reached by the Insurtech ecosystem, it’s time to consolidate all the ideas coming from startups in order to establish sustainable businesses out of them with a straightforward approach.

With the aim to give at the same time a big picture of Insurtech nowadays, here two abstracts that I would like to share:

  • How to build Insurtech Value Chains’ Ecosystems: “Corporates have now wholesale outsourced R&D to the startup and venture community” (Dave McClure, founder of 500 StartUps). In his Insurtech Manifesto Matteo Carbone, one of the top Insurtech influencers, have already done a great job by classifying such a wide universe of Insurtechs. Many other insurance experts developed different maps as Carbone did, but how to really set up new business and insurance value chains that are sustainable for millennials and digital natives? In this article, a structured R&D methodology to generate new business models by leveraging the startups community is described.
  • Strategic Positions towards Disruptive Startups: In 2015 and 2016 the number of deals in Insurtech startups have been 295, accounting for 4.38 $B of investments. Respectively, 56% of deals and 73% of investments if considering the whole period between 2011 and 2017 (see CB Insights). In such a context, do big insurance players consider Startups as a threat or as an opportunity to embrace disruptions? By rating insurers as well as brokers upon two criteria, theirs Market Leadership and Disruptive Attitude, the result is a magic quadrant where four strategic possible positions towards startups are represented: Disruptive Leadership, Conservative Leadership, Disruption Hunter and Conservative Niche. Who will be the Disruptive Leader in 2017?

For the full Abstracts just click on the links of the bullet points above and if you’d love to see the full articles published, just leave a vote by 28th Feb 2017.

Thanks in advance for your support

Cheers,

Ivan Gruer | @ivangruer

New IT Innovation Development (N.IT.I.D) method Step 5: Select Solutions (Tripadvisor Case Study)


NITID-Select_Solutions

See also:

After brainstorming, simplifying, organizing and evaluating all the ideas, finally it’s time to select the BigData solution in which to invest.

Thanks to the QFD matrix, the key parameters  and competencies that are required for fulfilling the customer needs have been identified.

Moreover, the QFD assesses how the development of a new idea will change the strategic position of the company in the market through a gap analysis.

Anyhow, which idea to choose among all the bigdata IT initiatives?

The question can be addressed by using the Pugh matrix in the table below.

Pugh_Matrix

In particular, in our PUGH matrix of TripAdvisor, all bigdata initiatives are the new functions (needs) to implement and putted into rows: facilitate the process, establish an integrated supply chain, create customer experiences, engage customers and provide statistics and reports.

Meanwhile, all the IT solutions (requirements) are putted into columns: WEB user interface, restaurateur interface, suppliers interface, social networks, visual charts, external company’s interface, data analytics and predictive tools.

In the PUGH matrix a final benchmark is accomplished by assigning for each interception a score that might be -1, +1 or 0, respectively if the solution proposed is worse, better or equal on satisfying the specific need to a solution defined as a reference (market).

The solution to use as a reference for the in the Pugh matrix should be either one of the best solution of the market (e.g.: Booking) or the solution AS-IS that is currently provided to the customer.

The Pugh result is given by the sum of all the scores into rows and it is representative of much innovative and useful solution is.

As an example, according to results in the PUGH matrix, the most innovative solutions are the creation of a social network and the external company interface (EDI).

However, within a strategy plan definition such solutions might be risky due to the investments involved, more IT complexity to manage and agreements with stakeholders.

On the contrary, WEB user interface and Visual Charts, that have the second highest score (3) might be easily implemented and ready to use by the users of TripAdvisor. Thus, these solutions might be developed in order to quickly get a competitive advantage.

Not necessarily, the highest Pugh score is the best solution must be choosen. In this sense, the Pugh matrix is useful, rather than univocally determining one IT initiative, to encourage and stimulate a well-defined strategy with a proper staging.

In particular, in a strategy plan based on Pugh’s results it might be stated that a social network should be created only when the customer engagement has been improved enough thanks to WEB user interface and Visual Charts. By doing so, it is possible to leverage the customer commitment for achieving the network effect when promoting the social network initiative.

Similarly, if becoming a platform for an integrated supply chain is one of the long-term objectives, a proper staging and pace of the related IT initiatives should be defined in a way that fits the company DNA (see A question about IT change management: does the DNA of the company fit your IT vendor?).

For example, if TripAdvisor is a “cautious adopter”, it will better to first implement restaurateur’s interface IT initiative in order to engage them and then involve also suppliers with supplier’s interface.

Furthermore, as an example, specifically for the data analytics and predictive tool IT solutions (requirements), the KPIs to adopt are linked with the key performances evaluated in the QFD matrix through the need “providing statistics and reports” (see Table in New IT Innovation Development (N.IT.I.D) method Step 4: Evaluate Solutions).

In particular, the key parameters are data redundancy, correlation, representatives, etc. as a measure of the quality of the data to gather and collect. In such a way, it will be ensured reliable information and insights by considering all the relevant aspects: information theory, statistic, control theory and psychology (see Caution!!! BigData S.L.I.P.S.: five tips when using analytics).

With the Step 5 (Select Solution), the N.IT.I.D method for developing new business model thanks to BigData is accomplished.

So… Would Tripadvisor adopt new BigData initiatives?

Feelink – Feel & Think approach for doing life!

New IT Innovation Development (N.IT.I.D) method Step 4: Evaluate Solutions (Tripadvisor Case Study)


NITID-Evaluate_Solutions

See also:

After brainstorming new idea and organize them, the next step of the N.IT.I.D. method is to evaluate the solution proposed for the TripAdvsor case study.

The KJ method in the Step 3 (Organize), it has been possible to organize the un-structured brainstormed ideas in a structure way. The next phase is to connect all the ideas grouped with KJ method with the key performances needed in order to satisfy new functionalities.

In order to evaluate the solutions, all the key performances must be measurable. For example, the “facilitate the process” BigData initiation needs a new WEB interface to develop in order to create a list of pending reviews. In this case, some key measurable parameters for the interface should be the delay and inconsistency between the pending reviews shown and the incoming new receipts.

In the Table below are shown all the BigData ideas, IT infrastructures required and the KEY parameters that should be considered respectively as:

  • new needs
  • requirements
  • and Key Performance Indicators (KPIs)

BigData_Initiative - needs, requirements and KPIs

By putting needs into rows and the list of KPIs listed in the Table into columns, it is possible to create the QFD (Quality Function Development) matrix (see Figure below).

BigData Initiative QFD Matrix

In this example it has been assigned a score for each KPI with values X (no relations), 3 (weak relation) or 9 (strong relation) and an importance rating (e.g. from 0 to 9) for each new need accordingly to the priorities and objectives of the company.

For example, the importance rating should be assessed by considering factors such as the customer value curve, opportunity to innovate for getting a competitive advantage or risks (e.g.: disruptive innovations from competitors). Finally, the QFD score for each KPI is given by the sum of the scores intercepted by weighting (multiplying) them accordingly to the importance rating.

The aim of the QFD matrix is to link in a structured way the ideas (needs) with the key performances. Moreover, by assigning a score for each KPIs that measure its importance in order to satisfy the need it is possible to obtain an indicator of relevance for each key performance.

In the example, KPI inconsistencies (fake reviews and Negative SEO) is the most relevant KPI to consider since got the highest score (117).

Meanwhile, according to the importance rating, the most relevant ideas are Engage Customers and Facilitate the Process.

However, are they the ones that should be really implemented by TripAdvisor?

To be continued…

Feelink – Feel & Think approach for doing life!

New IT Innovation Development (N.IT.I.D) method Step 3: Organize (Tripadvisor Case Study)


NITID-Organize

See also:

A new business model for Tripadvisor has been developed thanks to BigData IT Innovations.

After brainstorming (Step 1) and then simplifying (Step 2) the founded new opportunities emerged from such a new business model, the next step for the N.IT.ID method is: Organize.

The purpose of organizing is to obtain a set of ideas and innovations that are structured according to a criteria that will be useful during the remaining two steps 4 and 5: Evaluate and Select.

So, after Step 2- Simplify, on the table there are the following opportunities for Tripadvisor thanks to BigData Innovation:

A) Facilitate the Process

B) Establish an Integrated Supply Chain

C) Create Customer Experiences

D) Engage Customers

E) Provide Statistics and Reports

 The Step 3 – Organize, consist on the following procedure:

  1. unify the remaining ideas into rational association of affinity group;
  2. rank the groups;
  3. group the unified ideas into a rational association affinity group (2nd level group) as it has been done at point 1;
  4. assign to each 2nd level group a general topic (avoid a list of ideas) or a common theme;
  5. identify relations among groups (correlations, dependencies,…).

In details:

1) Unify the remaining ideas into rational association of affinity group

In order to create affinity groups, it is necessary to define a criteria. Let’s assume as a criteria the function in the company (value chain), that would be involved for each idea.

With such a criteria the affinity groups are as follows:

Affinity_Groups

In particular, within the organization of Tripadvisor, A) facilitating the process and B) establishing an integrated supply chain are about its Operations’ activities.

While C) Creating Customers Experiences and D) Engaging customers they are responsibilities under Sales & Marketing department.

Finally, D) Providing Statistics and Reports might be considered as an additional Service (e.g.: after sales).

2) Rank the groups

As it has been done during the previous N.IT.I.D Step 2 – Simplify, it might be useful to further reduce the number of new initiatives by ranking the affinity groups and eliminating those groups that are less important.

For example, each team member should give a vote between 1 to 6 accordingly to its perception of importance (1 = low, 6 = very high) and then keep only the highly scored groups.

In this case, since there are only three groups, it does not make sense eliminate any groups.

Better would be to keep all the three groups for the next N.IT.I.D. – Step: Evaluate.

3) Group the unified ideas into a rational association of affinity group (2nd level groups)

In a similar way at point 1, group again the groups of ideas that are similar according to another criteria.

Using as a second criteria the Stakeholder potentially involved that are Customer, Suppliers (Restaurateurs and Hotels) and Collaborators, here below the 2nd level affinity groups:2nd_Level_GroupsIn particular, Customers & Suppliers are engaged in the idea A) facilitating the process and B) establishing an integrated supply chain.

While, Customers & Collaborators  are involved for C) Creating Customers Experiences and D) Engaging customers.

Finally, D) Providing Statistics and Reports might be considered as an additional Service (e.g.: after sales) for Suppliers.

4) Assign to each 2nd level group a general topic or common theme

As for N.IT.I.D Step 2 – Simplify, define a general topic or common theme that labels each 2nd level groups.

As labels for 2nd level groups just keep the stakeholder involved so that the general topics are:

  • Customers & Suppliers
  • Customers & Collaborators
  • Suppliers

5) Identify relations among groups (correlations, dependencies,…).

The last point is to identify relations among the 2nd level groups. In particular, as it is shown in the Figure below, there are two relations: one that is related to customers and one that is related to suppliers.

Precisely, the customer as a stakeholder create a link between “facilitate the process” and “engage customer” functionalities, while suppliers enable a connection between “integrated supply chain” and “provide statistics” ideas.

Groups_of_Ideas

An example how it looks like…

The Step 3 – Organize is actually the so called KJ Method developed by Jiro Kawakita.

Writing all the ideas into cards and using a whiteboard where to post them, it would be useful in order to have always the view of the “big picture” during the process.

Here below an example of it might look like a N.IT.ID process after Organize (Step 3).

KJ Method

To be continued…

Feelink – Feel & Think approach for doing life!

New IT Innovation Development (N.IT.I.D) method Step 2: Simplify (Tripadvisor Case Study)


NITID-Simplify

See also: New IT Innovation Development (N.IT.I.D) method Step 2: Simplify (Tripadvisor Case Study).

Thanks to the new data available for Tripadvisor, it has been applied the N.IT.I.D. process, and after the first step (Brainstorming), there are on the table the following opportunities:

1) Facilitate the process of the reviews for users by updating a list of “pending reviews” to fill once a new bill in a restaurant\hotel has been recorded.

2) Create “customer experiences” through new visualization charts such as a map of visited restaurants and hotels and\or a social network that connect users together in order to share the experiences.

3) Engage customers by creating synergies with loyalty programs.

4) Provide statistics and reports that might be useful to restaurateurs and hotel managers.

5) Establish an integrated supply chain by providing further additional services to restaurateurs and hotels.

All these ideas required investments, in terms of IT infrastructures, human resources and agreements with stakeholders or third parties. Will such investments have a return?

Hard to say now. Better first to jump at the second Step of the N.IT.I.D. process: Simplify.

A brainstorming session usually produce a redundant, inconsistent and  sometimes irrelevant set of ideas. Thus, a rough simplification could be done as follows:

1. Give to each idea a senentence\image

The idea\image should identify briefly the concept. In this case, simply let’s keep as images for the opportunities mentioned above the words in bold: facilitate the process, create customer experiences, engage customers, provide statistics and reports, establish an integrated supply chain.

2. Remove redundant ideas

After giving a simplified sentence, some ideas might be redundant. In this case, no redundancies emerged and thus all the idea should be kept on the table.

3. Rank each idea

With a set ideas that are unique (no redundancies) a vote among all the team members should rank the opportunities. For example, each member can give to each idea a score between 1 to 6: 1 not relevant at all and 6 extremely relevant.

The sum of the votes than will rank all the opportunities by theirs relevance.

An important recommendation: when ranking, each team member should evaluate ideas with a score between 1 and 6, without providing any justification. The vote should be only about perceptions, intuitions, and feelings. As Edward de Bono would say: “wear the red hat!” (see 6 Thinking Hats).

4. Keep only the most relevant ideas

After ranking all the ideas, the group might decide to keep only the most relevant ones (e.g.: first ten idea). Anyhow, do not throw away the removed ideas. Keep them in a temporary basket because they might be useful during steps 4 and 5 (Evaluate and Select solutions).

In our case, since there are only five items, all the ideas will be kept as important for the next step: Organize.

To be continued…

Feelink – Feel & Think approach for doing life!

Social Media Magic Quadrant (Part 2): Ability to Search Content


Social Network Magic Quadrant

The second aspect of a social media that wants to lead is the ability search and provide meaningful content to users.

(see also Social Media Magic Quadrant)

When we need an information, where to look for it in the web? As a part of a marketing communication strategy, from a SEO perspective, knowing who is leading as a search engine is crucial in order to be visible and been known as a brand.

(see also: Sentiment Analysis in Semantic Search: Find Out What Others are Thinking About Your Brand).

In other words: be visible as a brand where most likely people goes to look for something.

According to @netmarketshare (July, 2014), Google is without leading with 68,75% of queries, then Baidu (China) with 18,03%. Other search engines such as Yahoo, Bing and Ask, are just striving.

Anyhow, how Google gained its leadership as a search engine? Which are the main abilities as a search content leader?

1. Giving what people are looking for?

Able to collect the information that people want to know, that is meaningful and useful. In one word, a search that is semantic = content + context.

Providing a result that is contextualized according to the network and interests is what can boost user engagements. Is what Yahoo is might attempt to achieve with the acquisition of Flurry (…unless it’s only speculation).

2. What about developing a brand as a search engine? Google is not only leading as a search content providers. It’s also the best workplace 2014 mainly because provides to theirs employers Great Challenges, a Great Atmosphere and Great work.life balance. It might be correlation relationship between the two fact or it’s simply a coincidence. Anyhow, will you buy a product or a service of a company that is recognized as bad employer?

What about SNs Strategies?

Considering how Google is investing in its social media platform (Google+), according to social media magic quadrant, my perception is that Google is attempting to switch from “SN Content Searcher” to a “SN Leader”. In others words, from a search content “of others” (platform) to a search content “of my own (platform)” leadership. Feelink – Feel & Think Approach for Doing Life!

New IT Innovation Development (N.IT.I.D) method Step 1: Brain Storming (Tripadvisor Case Study)


 

NITID-BrainStorming

Immagine that a business model described in “New IT Innovation Development NITID: Tripadvisor Case Study” is in place where new data is available for Tripdavisor:

1) the receipt (WHAT)

2) the client user ID (WHO)

3) the GEO position of the restaurant (WHERE)

The purpose of collecting such data is to ensure a better service for customers by ensuring an effective countermeasure against Negative SEO tactics.

Anyhow, is this really all? How such a new data availability might be exploited? This is the aim of the NITID method: find new business opportunities that might arise from data.

Commonly, in a creative process, the first step is brainstorming. By putting all the ideas on the table without any kind of criticism, judgments and filters, here below a list of new business opportunities that a brainstorming session applied to the Tripadvisor case might generate:

1) Facilitate the process of the reviews for users by updating a list of “pending reviews” to fill once a new bill in a restaurant\hotel has been recorded. In such a way the user, when log in to TripAdvisor’s website, doesn’t need to search for the restaurateur to be reviewed since a pending review connected to the restaurant\hotel is available  Furthermore, the number of total reviews will increase since the review process has been simplified for customers.

2) Create “customer experiences” through new visualization charts such as a map of visited restaurants and hotels and\or a social network that connect users together in order to share the experiences.

3) Engage customers by creating synergies with loyalty programs and companies (e.g.: Nectar) and provide gifts to customers who deliver more reviews.

4) Provide statistics and reports that might be useful to restaurateurs and hotel managers: trends, demand forecast, seasonality, sentiment,….

5) Establish an integrated supply chain by providing further additional services to restaurateurs and hotels. In particular, the demand forecasts should be shared with restaurateurs and hotels’ suppliers by recording all the food\goods consumed by linking them with the receipt. For example, a week in a room requires three units of soap or for cooking a steak in a restaurant are needed 100 grams of meat plus 1 mg of salt and 5 grams of olive oil. By using this data it’s possible to establish a logistic platform that might provide a competitive advantage both for buyer (restaurateurs and hotels) and suppliers. In particular, buyers, and especially small entrepreneurs that cannot invest and maintain complex IT infrastructures, might improve theirs inventory turnovers by having a more granular and detailed consumption of material. Meanwhile, local suppliers might have additional information regarding consumptions and level of inventories of theirs clients and thus enable more frequent on time deliveries and\or with a small amount. Such a solution might be useful for enabling an advanced Demand Driven Supply Chain (DDSC). EBay’s already told us with its “same day delivery” business model where small retailers have became a network of a distribuited inventory (see: “EBay expands same-day delivery in local battle with Amazon“).

Maybe, or better for sure, there are many and many issues regarding those new business opportunities:

Why changing and expanding the business model of Tripadvisor beyond core activities?

Why to invest in new relations, IT infrastructure, and skills?

What about the issue of data privacy?

Anyhow, making questions, having doubts and putting barriers are not allowed when brainstorming.

As when dreaming:

Logic will get you from A to B. Imagination will take you everywhere (Albert Einstein).

Feelink – Feel & Think approach for doing life!

Social Media Magic Quadrant (Part 1): Ability to Generate Content


Social Network Magic Quadrant

Recalling Social Media Magic Quadrant as a tool for assessing the strategic position of a social media website, there are two key aspects:

1) Ability to generate content

2) Ability to search and provide meaningful content for the single user (contextualized search)

Considering the ability to generate content, here below an interesting infographic by Dustin W. Stout that gives the measure of who is leading as a content generator.


Click the animation to open the full version (via PennyStocks.la).

Well, e-mail is still the most used communication tool as well as WhatsApp has gained a oustansting leadership of instant messaging by intercepting and disrupting SMSs from mobile phones. Something to consider also by all the mobile operators.

Regarding microblogging, there is no doubt that Twitter is leading against Tumblr in terms of number of posts generated.

Moreover, as expected, there is no competition between Facebook and Google+ considering the number of likes.

Anyhow, how a social media will lead as a content generator?

Number of active users?

Ability to engage people? Or What?

Share your thoughts.

Feelink – Feel & Think approach for doing life!

New IT Innovation Development (NITID) method: Tripadvisor Case Study


NITID-Tripadvisor

How to fight Negative SEO tactics? Think about the case of Tripadvisor and imagine a business model as below:

1) eat a meal in the restaurant (e.g.: “La bella vita”) pay the receipt with a User ID Card (e.g.: loyalty\member card).

2) Then the consumption will be sent and registered in a TripAdvisor data base as “consumption to be reviewed”. That could be nowadays even easier than 10 years ago if you since the technology available such as card reader, smartphones, apps, are cheap and well-known by end users

3) You go home and since you have enjoyed the delicious spaghetti at “La bella vita” you decide to post a review in Tripadvisor. Since there is a consumption associated to you, your review will be validated and thus not consider as Positive\Negative SEO tactic.

4) The competition around “La bella vita” is challenging and the main competitor, “The Beagle Boys’s Pizza”, pretty tough. “The Beagle Boys” is highly pushing a Negative SEO tactic and they usually attempt to write bad reviews against “La bella Vita”. Unfortunately, since no consumption is pending as “to be reviewed”, the comment in Tripadvisor will be not considers as valid.

Well, such a business model might fix definitely the issue of Negative SEO for Tripadvisor and make their service much more useful for consumers…

…but, is that really all about implementing such a business model?

I mean, how is possible to fully exploit the investments needed for developing a new IT infrastructure?

Well, new data is actually now available for Tripadvisor since many consumptions are tracked. In particular, three key aspects has been registered:

1) WHAT (spaghetti)

2) WHO (user ID)

3) WHERE (GEO position of the restaurant)

That is actually what a BigData initiative is: leveraging the data available inside as well as outside the company not only for improving the core business but also for developing new ones.

How? By using a N.IT.I.D method: New IT Initiative Development.

Coming soon.

Feelink – Feel & Think approach for doing life!

Social Media Magic Quadrant: who will be successful? The key of a linkage with search engines


Social Network Magic Quadrant

Around the world many Social Networks are in place, many just born and many other just died.

Level of engagement, usability and giving to final users which information to share are more likely what a SN should develop in order to be successful nowadays.

Anyhow, who among the big ones like Facebook, Twitter, LinkedIN, Google+,… will survive also in the future?

Which are the key factor of success in this race?

I guess that for leading as a Social Network one key ingredient is required: a strong linkage between the content (+context) and a well-known search engine.

That’s because when people would know something more about a topic, company or person, usually type a key word in a search engine or in a Social Network as well. Therefore, having meaningful content that is delivered\promoted as results of the search engine is what will lead a social media to success.

On the other side, a search engine has to defend its brand (because they have it!!!). A search engine wouldn’t return results with bad contents and\or from people with bad reputation. Thus, the algorithm of a search engine should defend its brand by providing good contents from trusted social networks.

Well, probably, among the big ones who has the strongest linkage between a Social Network and a search engine is Google: Google+ (SN) and Google search (Search Engine).

However, despite Google search is the most used search engine, Google+ is not leading as a content generator and thus able to reach a critical mass of contents. Promoting Google+ by engaging as much (trusted) users as possible is part of its strategy, as far as I realized.

On the other side, according to its Merge & Acquisition , the most popular SN, Facebook, doesn’t seem to show an interest on promoting to user as well as investing on a search engine. Who will win? We’ll see.

Meanwhile, other SNs have already shown how the linkage with a good search engine is strategic. Think about LinkedIn that is widely used by hiring manager for screening candidates.

Recalling the fairy tale Snow White and the seven Dwarfs:

Mirror, mirror on the wall, who’s the fairest of Social Networks all?

(see also: Semantic search algorithm, behaviorism and fairy-tale Snowwhite with the seven dwarfs. Would SEO behave like Grumpy?)

Snow White and Semantic Search

Snow White and Semantic Search

Feelink – Feel & Think approach for doing life!

P.S.: By the way, will Gartner Inc. approve the Social Media Magic Quadrant? 😉