WebProNews

Category: Retail & eCommerce

eCommerce, Online Retail & Retail News

  • Michael Dell Predicts in 10 Years More Computed Data on the Edge Than Cloud

    Michael Dell Predicts in 10 Years More Computed Data on the Edge Than Cloud

    “The surprise outcome ten years from now is there’ll be something much bigger than the private cloud and the public cloud,” says Dell Technologies CEO Michael Dell. “It’s the edge. I actually think there will be way more computed data on the edge in ten years than any of the derivatives of cloud that we want to talk about. That’s the ten-year prediction.”

    Michael Dell, Chairman and CEO of Dell Technologies, discusses how it has become a critical technology platform for its customers in an interview with theCUBE at Dell Technology World 2019 in Las Vegas:

    Data Has Always Been at the Center of How the Technology Industry Works

    We feel great. Our business has really grown tremendously. All the things we’ve been doing have been resonating with customers. We’ve been able to restore the origins of the entrepreneurial dream and success of the company and reintroduce innovation and risk-taking into a now $91 billion company growing at double digits last year. Certainly, the set of capabilities that we’ve been able to build organically and inorganically, with the set of alliances we have, the trust that customers have given us, we are super happy about the position that we’re in and the opportunities going forward. I think all this is really just a pregame show to what’s ahead for our industry and for the role that technology is going to play in the world.

    Data has always been at the center of how the technology industry works. Now we just have a tsunami, an explosion of data. Of course, now we have this new computer science that allows us to reason over the data in real time and create much better results and outcomes. That combined with the computing power all organizations have to reimagine themselves given all these technologies. Certainly, the infrastructure requirements in terms of the network, the storage, that compute, the build-out on the edge, tons of new requirements, we’re super well-positioned to go address all that.

    Predicts in 10 Years More Computed Data on the Edge Than Cloud

    The surprise outcome ten years from now is there’ll be something much bigger than the private cloud and the public cloud. It’s the edge. I actually think there will be way more computed data on the edge in ten years than any of the derivatives of cloud that we want to talk about. That’s the ten-year prediction. That’s what I see. Maybe nobody’s predicting that just yet, but let’s come back in ten years and see what it looks like.

    Really what we’re doing is we’re bringing to customers all the resources they need to operate in the hybrid multi-cloud world. First, you have to recognize that the workloads want to move around. To say that they’re all going to be here or there is in some sense missing the point because they’re going to move back and forth. You’ve got regulation, cost, security, performance, latency, all sorts of new requirements that are coming at you and they’re not going to just sit in one place.

    This is All Super Important As We Enter This AI Enabled Age

    Now with the VMware cloud foundation, we have the ability to move these workloads seamlessly across now essentially all the public clouds. We have 4,200 partners out there, infrastructure on-premise built and tuned specifically for the VMware platform and empowered also for the edge. All of this together is the Dell Technologies cloud. We have obviously great capabilities from our Dell UMC infrastructure solutions and all the great innovations at VMware coming together.

    Inside the business, the first priority was to get each of the individual pieces working well. But then we saw that the real opportunity was in the seams and how we could more deeply integrate all the aspects of what we’re doing together. You saw that on stage you know in vivid form yesterday with Pat and Jeff and Satya and even more today. Of course, there’s more to do. There’s always more to do. We’re working on how we build a data platform bringing together all of our capabilities with Boomi and Data Protection and VMware. This is all going to be super important as we enter this AI enabled age of the future.

    We’ve Created an Incredible Business

    I think investors are increasingly understanding that we’ve created an incredible business here. Certainly, if we look at the additional coverage that we have as they’re understanding the business, some of the analysts are starting to say hey this doesn’t really feel like a conglomerate. It’s a direct quote. If you think about what we demonstrated today and yesterday and will demonstrate in the future we’re not like Berkshire Hathaway. This is not a railroad that owns a chain of restaurants. This is one integrated business that fits together incredibly well and it’s generating substantial cash flows.

    I think investors over time are figuring out the value that’s intrinsic to the overall Dell Technologies family. We’ve got lots of ways to invest, we got VMware, SecureWorks, Pivotal, and of course the overall Dell Technologies.

    Michael Dell Predicts in 10 Years More Computed Data on the Edge Than Cloud


  • How WeWork is Using Technology to Revolutionize Office Space Worldwide

    How WeWork is Using Technology to Revolutionize Office Space Worldwide

    “We open 15 to 20 buildings a month,” says WeWork CTO Shiva Rajaraman. “Anything we can use to automate or augment a person through machine learning we’re taking all that data in one central place and starting to create an engine around that. That’s key to successful scaling today. When we think about enterprise we sort of step back and say what’s our Google Analytics for commercial space?”

    Shiva Rajaraman, Chief Technology Officer of WeWork, discusses how WeWork is using technology to revolutionize office space worldwide in an interview on Bloomberg:

    How Do We Offer Space As a Service?

    There are three capabilities when we think about WeWork. One is how do we offer space as a service? If you just think about it’s really basic. Are you looking for what location do you need? Where do you need it? How long do you need it? Are there different pricing models for it? One of the things we’ve done is effectively taken all of this space and put it into a big database and we start to shape it based on what we see out there in the market. Some of that is just pricing automation at the end of the day. Some of it is how do we automate that supply chain of delivering a building?

    We open 15 to 20 buildings a month. Anything we can use to automate or augment a person through machine learning we’re taking all that data in one central place and starting to create an engine around that. That’s key to successful scaling today. The biggest technically challenging thing is operational scale. If you step back you don’t want a lot of variability. You want to step back and say, “Hey, can I deliver this building on time at quality as people need it?” That’s where you need operational technology that really works in a way that normally construction has not worked in the past.

    What’s Our Google Analytics for Commercial Space?

    One of the key things on the strategy side is that as we see this demand and we start to get critical mass in different areas can we disrupt the business model a little bit? Let me give you an example. If you take someone like GE Health in Seoul, South Korea, they had underutilized real estate. We redesigned that so they can use it in a more flexible way. We also created a new membership called the City Pass which gives all of their employee’s access to WeWork throughout Seoul. Now they can go where they’re more productive. One of the key things we’re looking at right now is what’s a density that translates to interesting memberships that allow people to be more productive?

    Let’s talk about the M&A that’s created a fabric that we can start to offer to enterprises. When we think about enterprise we sort of step back and say, “What’s our Google Analytics for commercial space?” Can we help these enterprises create a good workplace experience through things like room booking (service) all the way to understand how they use space so they can come and use WeWork on demand if they need it. We can also help them grow in the future if they’re looking at new markets to expand into.

    How WeWork is Using Technology to Revolutionize Office Space Worldwide


  • Are Construction Service Businesses Recession-Proof?

    Are Construction Service Businesses Recession-Proof?

    There’s an economic downturn coming. Signs show economic growth is cooling off, and it’s time to batten down the hatches of your small business and prepare for tough times ahead. If you are in a recession-proof business like beverage alcohol or a tattoo shop, you are going to do just fine. If you aren’t, it’s time to reevaluate your position.

    Economic Downturns Present Opportunities To Do Better

    It’s time to cast off all the extraneous business that doesn’t truly have to do with your company’s core competencies. Before the economy swings downward, focus on your strengths and market those. But there are plenty of other ways to remain competitive during an economic downturn.

    Franchises are a great way to ride out a coming economic storm. These businesses are built upon an existing support network, which means that you won’t have to worry about certain elements of your business alone.

    Fast casual restaurant chains are one type of franchise, but there are also auto maintenance chains, construction business chains, and more.

    The Construction Business Can Hold Its Own

    Though real estate is often pummeled by economic downturns, certain areas of the construction business often do very well. People will always need plumbers, HVAC repair and replacement, new roofs, new siding, and more. Renovations are often a way to make do with what you have during an economic downturn, which means that certain parts of the construction industry will continue to do well.

    Renovations are costly, but at least half of homeowners have home improvement projects in mind. Only 36% plan to leave it completely to the professionals, while 30% plan to get professional help but supplement with their own labor.

    Nearly half of homeowners plan to spend $5000 on their next home improvement project. While many plan to skimp on interior designers and architects, these professionals can prevent hidden issues and costs before they happen. The most common budget breakers are:

    1. Choosing material upgrades
    2. Products and services cost more than estimated
    3. Project changes midstream
    4. Project increases in complexity due to unforeseen circumstances
    5. Unexpected construction issues

    In the long run, it’s often cheaper and easier to leave most projects to the professionals, which means construction is a fairly safe bet for the coming economic downturn. Professionals often know ahead of time what’s in the walls, so they are unlikely to screw into a water pipe or take a sledgehammer to an air duct.

    Common Renovation Mistakes Are Costly, And Professionals Know Better

    Most homeowners don’t know the difference between plaster and drywall, let alone how to patch a hole in drywall. Three in four first time homebuyers have no experience with home renovation projects, while even one in three long-term homeowners are in the same boat. Homeowners will always need construction professionals.
    If you are looking at a business that may be able to ride out the coming economic downturn, look toward commonly needed construction services. Learn more about common home improvement projects, the costs associated with them, and the likelihood that homeowners will need to hire a professional from the infographic below.

  • Building the Target of the Future

    Building the Target of the Future

    “We dropped back several years ago and started thinking about building the Target of the future,” says Target CEO Brian Cornell. “It really started with an investment in understanding the consumer and really understanding what they were looking for and how to build the capabilities starting with data science to really guide us through that journey. Whether that’s technology or supply chain capabilities, product design, or our focus on execution at the store level, data and analytics have been important guideposts for us as we’ve gone through this journey.”

    Brian Cornell, CEO of Target, discusses the details of how the company is building the Target of the future in an interview at the Stanford Graduate School of Business:

    Reimagining Stores and Investment in Technology is Paying Off

    Target’s (current success) is really a combination of a number of things that we’ve been working on for several years now. If I go back to February of 2017 we laid out a three-year vision for the company. We said we’re going to invest billions of dollars. At that point, I said $7 billion dollars over a three year period to invest in reimagining our stores, in building new smaller stores and urban centers and on college campuses, reinvest in our brands, invest in technology and fulfillment capabilities, and make a big investment in our people.

    The success we’re seeing right now is really a combination of all those elements starting to mature. We’re executing at scale and they’re all starting to work together. That’s driving for us great top-line growth, market share gains, and importantly more traffic in our stores and visits to our site.

    In Most Cases Shopping Starts With the Mobile Phone

    I actually think blend (of digital and physical) is the right term. I think from a consumer standpoint they’ve really lost sight of whether they’re shopping in a physical environment or a digital environment. In most cases, their shopping starts with that mobile phone in their hands, that digital device. It’s how they decide where they’re going to shop and what they’re looking for. If you went to one of our Target stores this afternoon I guarantee you we’d find consumers with a phone in their hand, they’d be looking at their latest Pinterest, they’d be checking things on their favorite digital site, and they’d have their shopping list there.

    That device really guides them through the shopping experience. I think more and more there’s a blurring and a blending that’s taking place and it’s a combination of both. The consumer today is enjoying the fact that shopping has become really easy. They get the best of both. They get a physical experience when they want it and if they don’t have time they can shop from their desk or from their classroom. They’re constantly in touch and we’ve made it really easy now for them to interface with our brand on their own terms.

    Building the Target of the Future

    We dropped back several years ago and started thinking about building the Target of the future. It really started with an investment in understanding the consumer and really understanding what they were looking for and how to build the capabilities starting with data science to really guide us through that journey. I can talk a lot about strategy, but the other thing that we’ve recognized is how important it is to have the right capabilities in place. Whether that’s technology or supply chain capabilities, product design, or our focus on execution at the store level, data and analytics have been important guideposts for us as we’ve gone through this journey.

    We’ve been fortunate in that we’ve recruited quite a few Stanford grads. I think what’s attracting them to our business is the richness of our data. The fact that on an average week we get 30 million consumers shopping our stores and a similar number going to Target.com. We have all this rich data and we understand where consumers are shopping, what they’re looking for, and I think they’ve been really intrigued by the ability to take that data and help us build a future.

    The Consumer is Looking For a Unique Personalized Experience

    I’ve certainly seen this trend towards personalization and localization. If I think about the changes in consumer packaged goods, in some cases those big brands that you and I grew up with, well they’ve been replaced by smaller local niche brands that we didn’t see when we grew up and they’re being regionalized across the country. I think the consumer today is looking for that unique personalized experience, whether they’re shopping a Target store or they’re walking through a local store right here on the Stanford campus.

    I think I walked in recognizing the importance of a clear strategy for an organization. But I’ve come to realize just how important culture is, a clear purpose, and importantly ensuring that our strategy is supported by great capabilities and the importance of team. I think (as we look toward the future) we’ll still be true to the purpose we have today. It’s really focused on bringing a little bit of joy to all the families we serve each and every week and really enhancing their everyday life. I think that focus on families, that connection we have today with moms with kids with families across the country, will be as true in the future as it is today.


    Building the Target of the Future – Target CEO


  • A Facebook Coin is Probably the Next Big One, Says Blockchain Capital Limited Co-founder

    A Facebook Coin is Probably the Next Big One, Says Blockchain Capital Limited Co-founder

    “For multinationals to issue their own currencies and request that their consumers purchase in that particular currency is not that outlandish,” says Blockchain Capital Limited co-founder Gavin Brown.  “So perhaps with multinationals being what they are the fact that they are able now digitally and technologically to issue their own currencies and request their consumers to use it is perhaps not a sort of an unreasonable thing to think. It may not be the whole mission short term but certainly in the medium term for sure. I mean a Facebook coin is probably the next big one I think.”

    Gavin Brown, co-founder & director at Blockchain Capital Limited discusses blockchain and cryptocurrencies in an interview on CNBC:

    Wherever There is Potential for Mistrust Blockchain Can Be a Solution

    We’re still very early in the technology, so a lot of people obviously associate bitcoin with blockchain, which is the underlying technology, which is understandable. However, the thing that most people fail to realize is that blockchain technology can obviously be applied to many different sectors and many different industries. I’m really keen, especially in the UK where I do a lot of work in my Future Economies Research Center which is a run out of Manchester Metropolitan University.

    What we do there is we look at various industries where blockchain is a really good solution to manage lots of things around provenance and trust, scalability, traceability and things like goods supply chains. Really, wherever you’ve got the potential for mistrust blockchain can be a potential solution.

    There Are Now Over 2,000 Cryptocurrencies

    Regarding cryptocurrencies, If you look overall there are over 2,000 coins in total now. If you look at fiat currencies, the money we use day-to-day, there are 180 fiat currencies recognized by the United Nations globally. Yet there are over 2,000 cryptocurrencies most of which are trying to be some kind of money replacement. So the general play and the way I perceive it is that we will have a shakeout phase as we do with any kind of technology and we’re likely to see it coalesce around either one or a handful of winners.

    Those winners will obviously win big. Identifying who they’re going to be is obviously the challenge. That’s why for most people they’ll probably want to run a portfolio inside the crypto asset space to try and maximize their chances. This is almost similar to a sort of leverage private equity-type model the way you’re running lots of different plays, where most will lose, but if you get the winner then you win big.

    A Facebook Coin is Probably the Next Big One

    What we’re seeing really is the democratization of money. If you and I wanted to we could create a CNBC coin and within three hours we could have it up and running and when we transact with people we could request that we do it using that particular coin. It raises the question of will people trust that coin? They will trust it if they trust your brand and f they trust your products. For instance, Starbucks has over a billion dollars worth of assets on its balance sheet of people who prepaid for coffee on their charge cards in advance. That’s because they trust the brand, they like the product, and they’re confident it will be there.

    For multinationals to, therefore, issue their own currencies and request that their consumers purchase in that particular currency is therefore not that outlandish. We live in an era where McDonald’s has got a higher credit rating than the country of Ireland. So perhaps with multinationals being what they are the fact that they are able now digitally and technologically to issue their own currencies and request their consumers to use it is perhaps not a sort of an unreasonable thing to think. It may not be the whole mission short term but certainly in the medium term for sure. I mean a Facebook coin is probably the next big one I think.

    A Facebook Coin is Probably the Next Big One, Says Blockchain Capital Limited Co-founder


  • Counterfeits Wreck The Economy – Here’s How

    Counterfeits Wreck The Economy – Here’s How

    Online bargain hunting is great, but sometimes those bargains turn out to be counterfeit. One study found that as many as two in five name brand items purchased online is counterfeit. Counterfeiting can be costly to businesses that have intellectual property stolen and sold out from under them, but counterfeiting can also be dangerous to consumers and can diminish the public image of counterfeited brands.

    Counterfeits Are More Pervasive Than Ever

    Thanks to online marketplaces where anyone can be a seller, highly convincing counterfeits make their way into homes and businesses across the world on a daily basis. An astounding 39% of the merchandise on online marketplaces is counterfeit, while 34% of search engine results yield counterfeit products as well. Makeup and skincare products are the most frequently counterfeited items outside of electronics, but supplements and medications are also counterfeited more frequently than you might suspect. While 16% of medications sold online are counterfeit, 10% of all medical products sold in developing countries are counterfeit, and most people don’t know they’ve used counterfeit medicines or medical products until they have had a bad reaction.

    Counterfeit electronics are also a lot more common than most people realize, and they can be very dangerous. 99% of fake iPhone chargers failed critical safety tests, causing electrical shocks and even sometimes electrical fires. Even secure cryptocurrency wallets are subject to counterfeiting, leaving valuable cryptocurrency in danger and most consumers wouldn’t even know it unless they were trained on what to look for. Many of the bargain electronics on online marketplaces are counterfeits; everything from replacement batteries to SD cards are commonly counterfeited.

    The Problems With Counterfeiting

    Not only is counterfeiting extremely costly – it’s estimated the global economy lost $323 billion from it in 2018 alone – it can leave consumers at risk and give companies an undeserved bad reputation. Most counterfeits are so convincing an unsuspecting consumer might not know it’s not a genuine article, and once something goes wrong the defrauded company is going to get the misplaced blame for the malfunction.

    Counterfeiters are also often associated with organized crime, and the profits from counterfeit merchandise can fund the drug trade, human trafficking, and more. Websites that sell counterfeit merchandise can often be used to steal the identities and bank card information of the unsuspecting people who use them, leading to still more crimes.

    Counterfeiting has also led to a trade war with China. One of the major complaints of companies that have manufacturing done in China is that some of those manufacturers are stealing intellectual property and using it to create an entire market of counterfeit products. This led to tariffs, which has led to a trade war standoff. Ironically, this trade war is pushing up the cost of genuine products, which in turn fuels the demand for counterfeits.
    Counterfeiting is a serious problem for everyone, and it doesn’t just take money out of the hands of wealthy purse designers. It causes genuine harm to consumers, businesses, and the economy as a whole. Learn more about the global cost of counterfeiting from the infographic below.

  • We Want To Be the World’s First Global Sleep Brand, Says Casper CEO

    We Want To Be the World’s First Global Sleep Brand, Says Casper CEO

    “We really consider ourselves the sleep company,” says Casper co-founder and CEO Philip Krim. “Everything we do is about helping our customers sleep better. It’s about getting a great mattress but it’s about everything that could help you sleep. We’re trying to take products to market that are end to end about sleep solutions. We want to be the world’s first global sleep brand and we think we’re well on our way to doing that.”

    Philip Krim, Casper co-founder and CEO, discusses how Casper, a highly successful direct to consumer brand (DTC), is still in the early days of growth in an interview on CNBC:

    We Want To Be the World’s First Global Sleep Brand

    We actually think Casper stands alone. We really consider ourselves the sleep company. Everything we do is about helping our customers sleep better. We think end to end about sleep. It’s about getting a great mattress but it’s about everything that could help you sleep. In January we launched a technology product, a lighting product, that actually helps you wake up better and fall asleep better. We’re trying to take products to market that are end to end about sleep solutions. We want to be the world’s first global sleep brand and we think we’re well on our way to doing that.

    We think we’re really one of the first of our kind. We were a digitally native business, having launched online with Casper.com, but we’re actually now scaling our business offline as well. We’ve opened up 23 retail stores and we have great partners with folks like Target. We believe that we will have a business where no matter how consumers want to shop for our products we have great products and great experiences. We actually think there’s really not a public company comp that’s done that journey.

    Repeat Revenue Increases Dramatically As We Launch New Products.

    Yesterday we launched our hybrid line which is actually the combination of innerspring technology and foam technology. We launched two different models around that. For us, we’re actually still able to compress those mattresses, ship them anywhere in the country, and they’re really phenomenal products that we’re in development for over a year in our Casper Labs program based in San Francisco. From a cost structure, it works just the same way as our foam mattresses. You can compress it, you can ship it anywhere, it’s super fun to open and they sleep really great.

    We make great pillows, we make great sheets, and we make great lighting products. We are seeing higher and higher attachment rates as we launch new products and we’re seeing repeat revenue increase dramatically as we launch new products. We’re only a five-year-old company, actually as of this month. We launched April of 2014. As we get our customers to be a little bit more mature we’re seeing them come back time and time again not just to buy mattresses but to buy our full suite of products. That’s really exciting for us.

    We’re In the Early Days of Scaling

    We actually changed the way that you would return a mattress. In the industry traditionally it’s a huge pain, but with us, you call us up and we’ll pick up the mattress. You don’t even have to pack it back up, nothing. We will come to pick it and up and then we donate it locally. We appreciate that you gave us a shot. We also are changing the way that people shop for the products. We have our Casper.com website where you can learn all about these great products but we have 23 stores that we’ve opened. We’re opening up over a dozen this quarter, two this week in fact, and those stores are a great complement to the online experience.

    We don’t break out profitability overall. Casper has a great product, we have a great business model, and we’re seeing that by taking it to market both online and offline that it’s actually growing our online business in a very efficient way. We think this go to market strategy is working well. We’re in the early days of scaling it and we believe we can keep building this out for years to come.

    We Want To Be the World’s First Global Sleep Brand, Says Casper CEO


  • The Secret to Subscription Business Models is to Think About Your Customers, Says Zuora CEO

    The Secret to Subscription Business Models is to Think About Your Customers, Says Zuora CEO

    “The secret of these business models or products is not just going beyond on products. Think about your customers,” says Zuora CEO Tien Tzuo. Zuora helps companies implement subscription business models into their existing products and services using their cloud-based software. They help their customers which include OTT (Over the Top) content providers, tech companies, and even traditional consumer brands like Fender Guitars enter the subscription economy.

    Tien Tzuo, Founder and CEO of Zuora, discusses how even the most traditional of companies can successfully implement a subscription business model in an interview on Fox Business:

    This is the Early Days of OTT

    It seems to easy as an end user. You just pick up your phone, fire up your browser, and you start using these (subscription) services. A lot of things have to happen behind the scenes. You have to check your credit card, remember to send out the monthly bill, figure out how much revenue you should recognize, or allow your customers to upgrade to a family plan or a better bundle. We take on all that so that companies can focus on what they do best which is providing a great service and a great experience for their customers.

    I think people are missing the big picture which that OTT really today only represents 5% of the $500 billion spent on TV. This is really the very early days and there is probably room for many vendors to thrive. If you think about the cell phone market there’s AT&T, Verizon, T-Mobile, and Sprint. It’s true that they use pricing packaging to compete with each other but they also have differentiated products in the marketplace.

    Think About Your Customers

    The secret of these business models or products is not just going beyond (and reinventing) products. Think about your customers. The great story about Fender (Guitars) is that Fender realized their customers obviously wanted to be musicians, but it was hard. Over 90% of their customers actually stopped playing the guitar after 90 days. So they asked, “How do we help our customers over the hump?”

    How to Play Guitar, by Fender

    If they are playing them well they are going to play for life and they’re going to buy a lot more guitars, a lot more amps, a lot more picks. They launched Fender Play to really teach their customers for a simple $20 a month how to play the guitar. They are seeing enormous success in the customers that actually sign up for Fender Play in sticking with it. So stick with the guitar and you can become really good. It’s never too late.

    The Secret to Subscription Business Models is to Think About Your Customers – Zuora CEO


  • Salesforce CEO: Every B2B and B2C Company Is Becoming a B2B2C Company

    Salesforce CEO: Every B2B and B2C Company Is Becoming a B2B2C Company

    Salesforce co-CEO Marc Benioff says that every company is becoming a B2B2C company. “Every B2B company and B2C company is becoming a B2B2C company,” says Benioff. “What company does not have to directly connect with the consumer? You could be a traditional industrial company who’s selling to B2B resellers and you have to be ready in this connected digital revolution to be able to connect directly to your consumer as well.”

    Marc Benioff, co-CEO of Salesforce, discusses their recent high flying quarterly results and talks about how every company is becoming a B2B2C company in an interview with Jim Cramer on CNBC:

    We Just Had a Fantastic Fourth Quarter

    We just had a fantastic fourth quarter. We’re taking a look at those numbers right now and it was an amazing quarter. In fact, we beat our revenue estimates quite handily. As part of that, our co-CEO Keith Block closed the largest transaction in our history and the largest transaction ever in Barclays history. It was a deep nine digit transaction to help automate their 50 million customers. It really goes to show how the three major trends that are playing out in computing today, the cloud, broad digital transformation, and a focus on the customer, can really impact our company by creating a huge deal and also being able to support a huge transformation at Barclays.

    I feel great about our business. I’ve always felt great about it. We’re coming up on our 20 year anniversary this Friday. It’s been 20 years that have been unbelievable to us here. We are coming up on a year that we’re going to do $16 billion in revenue that far exceeds my expectation. I still have never been more excited about Salesforce than I am right now. When I look at the short term I see $20 billion right around the quarter and I see $30 billion right around the corner. In fact, we initiated a four-year guidance today of $26 to $28 billion.

    Every B2B and B2C Company Is Becoming a B2B2C Company

    You can look at a great deal that we did this quarter with Amgen, a tremendous biotechnology company. This is a company that’s really expanding with our health cloud. This is our vertical strategy to build products specifically for certain industries. In this case, our health cloud is going to help Amgen connect with their customers in a whole new way.  Every B2B company and B2C company is becoming a B2B2C company. What company does not have to directly connect with the consumer?

    Not just Amgen, everybody. You could be a traditional industrial company who’s selling to B2B resellers and you have to be ready in this connected digital revolution to be able to connect directly to your consumer as well. That’s a major trend that we’ve benefited from for so many years now and you’re going to see that continue to play out. That’s certainly something driving this relationship with Amgen as well.

    Brunello Cucinelli and Lamborghini Using Salesforce to Connect

    Brunello Cucinelli is one of the great fashion brands in the world and we’ve completely transformed Brunello Cucinelli. He actually touches the customer in many different forms. He has a direct B2C relationship. He’s online with them. We run his website. You go into his stores. That’s a direct consumer connection. But did you know he’s a B2B company also? That’s because he’s selling to resellers who are reselling his products in some of the big retail stores around the world. He’s a B2B and a B2C company. We have to bring it all together with him and give him a single view of his customer. That’s the transformation he has to go through and has gone through and that’s why he’s had such great growth and we’re so excited for him.

    Another great example is Lamborghini. Of course, Lamborghini is actually traditionally a B2B type company. They’re selling to their dealers and they’re making sure their dealers are successful. some of those dealers are not even owned by Lamborghini but now they need to be able to connect with their customer in real time, all the time. They’re also a B2C direct customer. That’s why the new Urus, their new SUV, is built entirely on Salesforce. It’s the connected Lamborghini. That’s a vision for all car companies in the future that they can directly connect with you, not just connect with their dealer. That’s the B2C and B2B transformation that we’re talking about.


  • Disney CEO: What Netflix Has Done Has Actually Been Good For Us

    Disney CEO: What Netflix Has Done Has Actually Been Good For Us

    “We wouldn’t have been ready to launch it (Disney+) two or three years ago,” says Disney CEO Bob Iger. “We wouldn’t have even been ready to talk about it. It takes technology. It takes content. It takes the talent to make the content. It takes a marketplace. You could argue that what Netflix has done has actually been good for us because they’ve seeded the marketplace to robust over-the-top content distribution and presentation.”

    Bob Iger, CEO of Disney, discusses the launch of Disney+ and how Netflix may have actually paved the way for Disney in an interview on CNBC:

    What Netflix Has Done Has Actually Been Good For Us

    We did extremely well licensing our content and Netflix. We’re launching this product (Disney+) because we are ready to launch it. We wouldn’t have been ready to launch it two or three years ago. We wouldn’t have even been ready to talk about it. It takes technology. It takes content. It takes the talent to make the content. It takes a marketplace. You could argue that what Netflix has done has actually been good for us because they’ve seeded the marketplace to robust over-the-top content distribution and presentation. I like launching when we are launching and believe that it’s a great time for us and the Fox acquisition was had a lot to do with it.

    There is something interesting that I’ve observed and I don’t think I’ve said it publicly. We announced that we were doing (Disney+) in June 2017 and (when)  we decided to do it that led to the purchase of BamTech. Then the opportunity to buy Fox first came up later that year. In fact, just a few months after the Board approved us buying the majority share of BamTech, which was done for one reason to go into the direct-to-consumer business, Rupert and I sat down and talked about the transaction. We would not have done that transaction had we not decided to go in this direction.

    We Evaluated What We Were Buying Through This New Lens

    If we hadn’t we would have been looking at that business through a traditional lens. Oh we’re buying TV channels, were buying more movie making capability, etc. and so on. By the time the acquisition opportunity came up and we knew we were going in this space we evaluated what we were buying through this new lens. What could National Geographic mean to us? What could it mean to us being in the direct-to-consumer space in India? What could it mean having access to their library, not to monetize it through traditional means but to do it through this? Bam! I mean the light bulb went off.

    It maybe speaks to why people don’t acquire companies too, because you try to measure what you’re acquiring in a traditional sense. Our decision to buy Pixar, Marvel. and Lucasfilm was made because we believed that great storytelling would stand the test of time. No matter how much the marketplace was disrupted, whether it was cable and satellite, movie theaters, traditional television, you name it, a great story well told, was going to succeed as an investment or as a financial proposition no matter what.

    Related Articles:

    The Marketplace Has Never Been This Dynamic, Says Disney CEO

    Disney Can’t Begin to Catch Netflix, But They Don’t Need To, Says Media Innovator Tom Rogers

    John Malone says Disney Needs What Apple and Amazon Have… Massive Direct Consumer Relationships


  • The Marketplace Has Never Been This Dynamic, Says Disney CEO

    The Marketplace Has Never Been This Dynamic, Says Disney CEO

    “If you measure it against the present, the present doesn’t stay the present for very long,” says Disney CEO Bob Iger when discussing their Disney+ launch. “In fact, in today’s world that’s changing so much, the marketplace has never been this dynamic, meaning speed of change is much faster. That’s technology, that’s consumer behavior driven by technology, it’s economics, it’s how things are marketed, anywhere you look.”

    Bob Iger, CEO of Disney, discusses their new Disney+ service and the necessity for companies to innovate beyond their current business models in an interview on CNBC:

    The Marketplace Has Never Been This Dynamic

    I’m an optimist and a realist. I’ve been at the company for 45 years and I’ve been president or COO since 2000. I have a deep understanding and appreciation of Disney and its brand and its relationship to consumers. I’m pretty optimistic about the ability for this thing to work particularly when we make it accessible. Because of the content we’re putting on, because of the user interface, and because of the price, I believe this is going to be successful. If in 5 years time we prove to be wrong, we’re still making great content that’s going to be in great demand globally.

    If you measure it against the present, the present doesn’t stay the present for very long. In fact, in today’s world that’s changing so much, the marketplace has never been this dynamic, meaning speed of change is much faster. That’s technology, that’s consumer behavior driven by technology, it’s economics, it’s how things are marketed, anywhere you look. You can’t measure it against what it is today, you have to measure against what you believe it’s going to be tomorrow. One of the reasons why companies fail to innovate is they continue to measure it against today.

    Companies Should Think About Tomorrow’s Business Model

    If you’re in the business of selling physical film you want to keep selling as much of that film as you possibly can. You believe you may hit a speed bump here and there, whether it’s the economy or a new competitor enters the marketplace, but you’re not really thinking it’s going away. Your business is not about film, it’s about taking pictures, and (you should) let people take pictures no matter how they want to take them.

    It’s a lot of pressure to not do that in a way because you’re getting measured by quarterly earnings, annual earnings, how much you grew, and in many cases compensation is tied to near term versus long term. It becomes very difficult to innovate because you just you’re so tied to the business model that got you where you are. This could be great, but it often causes companies to not think about what is that business model going to look like tomorrow.

    Related articles:

    Disney Can’t Begin to Catch Netflix, But They Don’t Need To, Says Media Innovator Tom Rogers

    John Malone says Disney Needs What Apple and Amazon Have… Massive Direct Consumer Relationships


  • Oracle CEO: Applications Market Changes Significantly As It Moves to Cloud

    Oracle CEO: Applications Market Changes Significantly As It Moves to Cloud

    “The applications market is about $125 billion per year,” says Oracle CEO Mark Hurd. “That is spent primarily on applications and most of it today is spent on on-premise applications. That market changes pretty significantly as it moves to cloud. As it moves to cloud, the subscription that you pay for the cloud includes not only the application but includes all of the hardware, the servers, and storage. It becomes a bigger market just by the very nature of the migration of the application to SAAS.”

    Recently, Hurd noted that all of their current customers will eventually move to the cloud. “We have a big existing on-premise user base and I believe all of them will move to the cloud,” said Oracle CEO Mark Hurd. “In fact, I was with a large group of our users just last night and they’re all going to move on their time frame. When we get to a certain point you will start to see a geometric move in the market and it will be significant.”

    Mark Hurd, CEO of Oracle, discusses their NetSuite acquisition and the growing size of the applications market as it moves to the cloud in an interview on Fox Business. Hurd was in Las Vegas for the Oracle NetSuite SuiteWorld event:

    NetSuite Acquisition Has Been an Amazing Success

    We’ve invested a lot in the applications market. We’ve invested in big and small segments of the market. Big customers and small customers. We acquired NetSuite about two and a half years ago it’s really been an amazing success. There are roughly 10,000 customers here (in Las Vegas) for our event (Oracle NetSuite SuiteWorld). It is very exciting.

    When we bought NetSuite the company was growing about 16 percent in revenue. We’ve invested a lot in R&D and in tailoring the application for more industries. We’ve added sales people as well. It has resulted in incredible growth. Starting about a year ago we began to really grow our booking and that’s now translated to revenue. Last quarter we reported revenue that was almost double the revenue growth we had coming into the acquisition.

    Applications Market Changes Significantly As It Moves to Cloud

    There is a couple of phenomena going on at the same time. The applications market is about $125 billion per year. That is spent primarily on applications and most of it today is spent on on-premise applications. That market changes pretty significantly as it moves to cloud. As it moves to cloud, the subscription that you pay for the cloud includes not only the application but includes all of the hardware, the servers, and storage. It becomes a bigger market just by the very nature of the migration of the application to SAAS.

    Inside that $125 billion about $75 billion is back office. That would be described as things like general ledger, accounting, supply chain, procurement, and HR. The other 30 percent is front office including things like sales automation and marketing automation. NetSuite has played in the mid-market, small customer side of that back office market. It’s had explosive growth. When you ask who’s moving (to the cloud), it’s really everybody from the biggest guys, whether those be as big as an AT&T all the way to your smaller startup.

    If you look today, half of the cloud application customers (and revenue) that we have came from our base and half came from outside.

    Oracle CEO Mark Hurd – Application Market Changes as it Moves to Cloud
  • AI: The Secret To Sustainable Supply Chains?

    AI: The Secret To Sustainable Supply Chains?

    For businesses, especially those operating heavily within E-commerce, what do truly sustainable solutions look like? From open lines of communication to central intelligence systems, as the pressure in the shipping and logistics departments mounts, retailers have more to focus on than just creating quality goods and services. Artificial intelligence is changing the game for sustainability in supply chains.

    In 2018 alone, eight out of ten customers were unlikely to shop again with a retailer after a poor delivery experience. Setting aside dissatisfaction of products, poor quality, or too high prices, consumer focus on fast and reliable delivery is quickly becoming a top priority. Between 2016 and 2017, E-commerce sales themselves grew by 16%, express shipping air freight volume grew by 9%, and US imports increased 5%. As a result, companies in the US are spending a total of $1.5 trillion on shipping and logistics, and yet, it still may not be enough.

    Amazon shipping options have undoubtedly raised the bar for both consumer expectations and E-commerce as a whole. Free two-day shipping, for its millions of customers, is well worth the yearly Prime subscription and keeps shoppers localized within Amazon’s marketplace. Yet, three in four consumers would choose another retailer over Amazon if that retailer offered better delivery options – no small feat.

    Perhaps more so than any other department, shipping and logistics come with plenty of unique complications and problematic inefficiencies. Too many inefficiencies and the consumer base is likely to notice. For late and unsatisfactory deliveries 90% of consumers expect a full refund; additionally, their expectations range from notifications, flexible delivery windows, and real-time tracking visibility. This can be tricky to manage for businesses, especially when juggling the existing inefficiencies of transportation of tools, equipment, and even people. Over 2018, empty trucks traveling accounted for 16% of total mileage used by just one US company and unscheduled vehicle or equipment repairs made up 65% of all maintenance costs.

    Businesses with huge logistical demands need better solutions than just traditional operations efficiency standards. Now that customer experience and satisfaction is tied so deeply in with shipping and delivery, new standards are required – and smart suppliers are looking to AI. A 2017 study among retailers revealed that 71% of those retailers surveyed found that sharing logistical data like shipment, order, and delivery data, among all departments, was an important step for their business.

    While AI steps into the service industry, its presence in the world of e-commerce is more symbiotic and stabilizing. With AI, retailers and manufacturers can have opportunities to aggregate data from all parts of operations, even past data, to help build better and longer lasting solutions. In more board terms, AI is able to predict market demand and shift to help recommend solutions for adjusting inventory and avoiding excess, passing efficiency on to the customer.

    When the success of a business hangs in the balance of consumer satisfaction, and consumer satisfaction lies within shipping and delivery quality, smart business leaders make proactive move to streamline operations. Learn more about how AI is making sustainability possible.

  • Yext Delivers a New Paradigm in Search, Says CEO

    Yext Delivers a New Paradigm in Search, Says CEO

    “Search has changed,” says Howard Lerman, CEO of Yext. “It used to all be about websites where you’d type in a keyword and you get ten blue links back on a page. Today, when you search you just get an answer. The companies that put answers out there from them are the ones that are going to win in this massive paradigm shift.”

    Howard Lerman, CEO of Yext, discusses how Yext helps businesses adapt to the new paradigm in search by inserting brand verified answers into all the major search platforms in an interview with Jim Cramer on CNBC:

    Yext Delivers a New Paradigm in Search

    Taco Bell with they’re 7,000 stores is a partner of Yext. But we don’t just partner with food companies. We added 350 new enterprise logos last year with 128 and Q4 alone. That’s nearly one logo per day. We live in an era of too much information and much of it is wrong. In this era of too much information, Yext delivers a new paradigm in search that enables consumers to get brand verified answers on all the major search platforms like Siri and Google and Alexa even the Chinese search engine Baidu.

    So the overseas tourists from China that come and go to luxury brands or need to eat can find information or they can find facts in Mandarin. They don’t use Google when they come to the United States.

    The Ultimate Authority on a Business is the Business Itself

    Morgan Stanley has over 14,000 Wealth Advisors. They all use the Yext platform to manage all the facts about every one of their advisers. They can log in, update their photo, they can say whether their a CFP and what languages they speak. They put it into Yext and boom it’s updated everywhere. We stand for the truth. The ultimate authority on Old Navy, the ultimate authority on Taco Bell, the ultimate authority on Morgan Stanley or New York Presbyterian Health is the business itself.

    So when you look up a doctor and you’re looking up a doctor that treats certain conditions and accepts certain insurances you need to make sure that you get the right answer. The ultimate authority on the doctor is from the hospital and the doctor itself. That’s what Yext stands for. We put customers, the brand itself, with brand verified answers in all these different services. Every customer journey starts with a question and when you use Yext your customers can get a brand verified answer.

    Companies That Put Answers Out There Are Going to Win

    Yext Brain is an extension of Yext that lets customers create any type of entity they want with custom objects in their platform. They can publish events. They can publish menus. They can publish products. If you’re in the financial services industry you can publish a credit card. These are all new types of entities that companies can put into Yext to deliver answers to their customer at that exact moment of intent. Search has changed. It used to all be about websites where you’d type in a keyword and you get ten blue links back on a page. Today, when you search you just get an answer. The companies that put answers out there from them are the ones that are going to win in this massive paradigm shift.

    Does Wendy’s have gluten-free menu items? Do they have vegetarian items? How many calories are in a Whopper? How many calories are in a Big Mac? What about the new Burger King Impossible Burger. These are the types of questions people ask. The number one question someone asks when they visit New York Presbyterian health, that’s one of our customers, is they want to find a doctor that can treat their condition, that accepts their insurance, and is near them. If New York Presbyterian Health can’t answer that question the consumer is going to go ask the question to a different provider.

    Yext Delivers a New Paradigm in Search, Says CEO


  • All of Our Customers Will Move to the Cloud, Says Oracle CEO

    All of Our Customers Will Move to the Cloud, Says Oracle CEO

    “We have a big existing on-premise user base and I believe all of them will move (to the cloud),” said Oracle CEO Mark Hurd. “In fact, I was with a large group of our users just last night and they’re all going to move on their time frame. We don’t put a time frame on it, but this thing is moving at a pretty good speed. It will not move linearly, it will move geometrically. When we get to a certain point you will start to see a geometric move in the market and it will be significant.”

    Mark Hurd, CEO of Oracle, discussed the huge growth in the cloud applications market and he expects Oracle to lead that market in an interview on Bloomberg:

    Cloud Applications Will Become a $400 Billion Market

    The apps market is about a $125 billion market. It has two pieces to it. First is back office, which is what we call ERP. This is basically your financial systems, procurement, manufacturing, supply chain, and HR. That is really 70 percent of the applications market or around $85 billion. Second is the front office market which includes marketing, sales automation, service, etc. add up to $40 billion. A very interesting phenomenon is that as the on-premise applications market moves into SAAS it actually grows exponentially. Now the applications market is doing all of the server work, all the operating systems, and all the database work. It’s the data center, it’s the people. So the market will actually grow from $125 billion and probably triple just as it moves to SAAS because it’s taking share from the other parts of the IT market. The applications market I predict will actually become more like $400 billion as it goes forward.

    We think it is an amazing opportunity. We are growing our applications market over the last 8-12 quarters more than double-digit. The market itself is growing and we are gaining substantive share. We are the leader in ERP. If you go back to Gartner, IDC, and the analysts we are leading in HR now as well. These are very attractive and robust markets. Our customers want to modernize, want to spend less, want someone else doing the work, and they want someone else assuming the risk. We are extremely bullish about our position in the market.

    All of Our Customers Will Move to the Cloud

    We have rewritten our application base for the cloud, for SAAS. We have been doing this for years and we’ve invested a lot of capital. We are deploying our capabilities all across the globe. We are extremely excited and bullish about not just our current position. There is going to be a leader in this market and there is no one today with more than 50 percent market share. In fact, the highest application percentage of any company in any segment is sort of mid-20s. This generation will see a leader that is much more material than that and I volunteer us to do it. In most segments, the leader has 50 percent plus.

    We have a big existing on-premise user base and I believe all of them will move to the cloud. In fact, I was with a large group of our users just last night and they’re all going to move. They are all going to move on their time frame. We don’t actually put an end of life. We have a competitor that does that, but we don’t do that. We want them to move at their pace and we want them to feel good about it. We don’t put a time frame on it, but this thing is moving at a pretty good speed. It will not move linearly, it will move geometrically. When we get to a certain point you will start to see a geometric move in the market and it will be significant.

    >> Watch the full Bloomberg interview with Oracle CEO Mark Hurd.

  • Younger Consumers Want To Connect Emotionally with Brands, Says PVH CEO

    Younger Consumers Want To Connect Emotionally with Brands, Says PVH CEO

    “Especially today, younger consumers want to connect emotionally with brands,” says Manny Chirico, CEO of apparel company PVH, which owns many lifestyle brands including Calvin Klein and Tommy Hilfiger. “They don’t want to just aspire for your brand looking down the runway, they want to be part of the life of the brand. I think Tommy Hilfiger does it well.”

    Manny Chirico, CEO of apparel company PVH, which owns many lifestyle brands including Calvin Klein and Tommy Hilfiger, discusses how the company has turned around by focusing on ecommerce, technology, and connecting with young consumers. He was interviewed on CNBC:

    Consumer Experience is Critical

    You have to be willing to make the investment. I think we really have done it (turned around the company), from not only a brand marketing point of view, but investing in all the new technologies and investing in the ecommerce platforms that really will drive the business going forward. Our stores are highly profitable and we need to continue to invest in those stores. The consumer experience is critical and we’re making connections with a younger and younger consumer.

    We’re all dealing with the challenge of the distribution models changing, but fundamentally we’ve always been a multi-channel retailer. We have big businesses in brick and mortar, both direct-to-consumer in our own stores and through our key wholesale partners like Macy’s here in the US or Galeries Lafayette in Europe. Those key players we continue to invest back into those platforms.

    Younger Consumers Want To Connect Emotionally with Brands

    The challenge with that high-end collector fashion business is are you connecting with a younger consumer today and how do you make your investments as you as you go forward? I think it needs to be more balanced than it’s been. Especially today, younger consumers want to connect emotionally with brands. They don’t want to just aspire for your brand looking down the runway, they want to be part of the life of the brand.

    I think Tommy (Hilfiger) does it well. We just have a fashion show in Paris with Tommy selling product immediately after that trying to connect with the consumer at more affordable price points than what you would see from the luxury point of view. That’s how you build big businesses. We’re not trying to build niche businesses selling just $2,000 men’s suits or evening gowns. We’re really about building big lifestyle businesses.


  • Technology and Innovation Powering Levi Strauss Growth Strategy, Says CEO

    Technology and Innovation Powering Levi Strauss Growth Strategy, Says CEO

    Levi Strauss began trading on the New York Stock Exchange this morning under the ticker symbol ‘LEVI.’ By mid-afternoon, the stock was at $22.66, substantially higher than the price offered to institutional investors. It’s clear that investors believe that Levi’s can leverage technology and innovation to successfully compete online and in brick and mortar stores.

    Levi Strauss Soars in NYSE Debut

    Charles Bergh, CEO of Levi Strauss, discusses how technology and innovation are driving increased sales and market share in an interview with CNBC coinciding with their IPO:

    We Are Denim and We’re the Market Leader Globally

    We are denim and we’re the market leader globally. A lot of people as we were doing the (IPO) roadshow said aren’t you guys just riding the denim wave? We’re creating the denim wave. We’ve been driving the category with innovation across our men’s business and our women’s business. We’ve expanded to other categories. Last year we finished with 14 percent growth coming off of 8 percent growth the prior year. The business is really humming right now.

    I believe this is sustainable for the long term. Maybe not double digits forever. But we’ve got clear runway for growth across the categories that we’re competing in. We’re building share in our core categories and expanding to new categories. Last fiscal year, when we finished the year our growth was really broad-based. If you looked at it in the categories where we competed we grew every single category. If you looked at it by geography we grew every single geography. If you look at it by channel we grew across wholesale, including US wholesale, which is a little bit of a melting iceberg right now. We grew in our own brick-and-mortar and ecommerce. It was very broad-based growth last year and we’re confident we can continue that.

    We Have Built a Very Big Platform for Big Data

    First of all, to be successful it does come down to strong brands. Consumers at the end of the day love an emotional attachment with their brand. We’ve recreated that that love for Levi’s. We have built a very big platform for big data. In fact just a couple of weeks ago we announced that we’ve hired a head of advanced analytics and machine learning who will sit on the executive team and report directly to me. We are mining the data that we do collect and really turning it into revenue.

    Our strategies are working and one of the key strategic choices that we made seven years ago, shortly after I joined, was to become a leading world-class omnichannel retailer and it is working. The mix has shifted to omnichannel. When I joined the company it was about 20 percent of our business. Today, it’s almost a third. It is faster growing than our wholesale business and we’re continuing to invest in it. Most of our capital investment is going into retail and ecommerce and knitting that seamless consumer experience together.

    Implemented New Instance of SAP and Investing in RFID

    It (IPO funds) is going to go into continued investment in building out our omnichannel. So both brick-and-mortar retail as well as our ecommerce business and then knitting it together with technology. For example, we’re implementing a new instance of SAP and investing in RFID (radio frequency identification). We’ve implemented RFID across our business in the US and UK and that’s actually really turning into money. Every one of the products in our store is tagged with RFID.

    I’ve actually had this experience happen to me myself in our new Times Square store. There was an item I wanted to buy and they didn’t have it in my size. A stylist came over and scanned the tag and she could see that my size was available in the back room. Just two minutes later I was in the dressing room trying it on. A year ago before our RFID that would have been a lost sale. That just wouldn’t have happened. It gives us instant clear visibility to the inventory in our store, both in front of house as well as back of house.

    Levi’s Driving Market Share Through Product Innovation

    Back in 2013 and 2014, the headlines were the death of denim. It was all about athletic tights and Lululemon tights. It became a throwdown moment for us as a company. We have an innovation center a couple of blocks from our office. We brought our suppliers, the mills that make denim for us, into that innovation center. We understood what women were really telling us by wearing tights. That used to be a denim occasion. They wanted soft stretchy comfortable material that made them look great and gave them confidence. That was what was driving that conversion. So we innovated around soft stretchy comfortable denim which we can now do. We developed proprietary four-way stretch so that women don’t get baggy knees, which is their biggest dissatisfier.

    We relaunched our business in the middle of 2015 and we’ve grown 14 quarters in a row and in the last eight quarters at double-digit rates. It has been a huge part of our growth. We were under $800 million just on women’s bottoms about three years ago. We’re over a billion dollars today. We are number one globally with a nine percent market share, but we’re not number one in a number of markets including right here in the US. So I really do believe we can continue to grow at an accelerated rate on our women’s business. There are lots of what I like to call share donors out there for us to build share while we’re building the category.

    We haven’t seen any (backlash to being an American brand). This brand stands for everything good about America. Freedom, democracy, and allowing people to express themselves. Authentic self-expression is what the Levi’s brand is all about. We’ve not seen any backlash. None. We think there are lots of opportunities still for us. I am not worried at all about denim. We are denim and we’ll continue to drive this category through great innovation and marketing that connects with consumers and sends them into our stores.

    Technology and Innovation Powering Levi Strauss Growth Strategy


  • We’re Trying to Build the Amazon Prime of Rental, Says Rent the Runway CEO

    We’re Trying to Build the Amazon Prime of Rental, Says Rent the Runway CEO

    “You will see the continuous expansion over the next year into many different categories,” says Rent the Runway CEO Jennifer Hyman. The company just raised additional funds at a $1 billion valuation. “Anything that you do not use every single day, we want to make it fiscally irresponsible for someone to not have a subscription to Rent the Runway. We’re trying to build the Amazon Prime of rental.”

    Jennifer Hyman, CEO of Rent the Runway, discusses in an interview on CNBC how her company benefits from the growing sharing economy and how ultimately she envisions Rent the Runway becoming the Amazon Prime of rental:

    We Benefit From the Advancement in the Sharing Economy

    It’s been 10 years since we’ve been working hard to pioneer this new form of dynamic ownership. Ten years ago we were not a darling of the industry and really had to partner with designers to show them that this was an entirely new customer base for them and a new revenue stream. This is just how young people are thinking about ownership across the board. I actually think we benefit from the advancements in the sharing economy. If you think about how this concept of dynamic ownership where we have unlimited choice and the ability to use whatever product we want whenever we want it, our digital worlds have already moved there.

    That’s how we consume entertainment. That’s how we consume music. The idea that you would have that closet in the cloud for the physical world and that form of dynamic ownership, the Millennial Generation Z consumer is so ready to adopt this behavior. That’s what we’ve seen since we launched our subscription, just this dramatic growth and acceleration, not only in how many users we have but in how frequently they use the product. They’re using it 120 days of the year with the unlimited subscription, which is now 70 percent of our revenue.

    Dynamic Ownership Applies to the Closet, the Home, and Beyond

    Think about how frequently millennials are moving and how your home has become this new bastion of self-expression. Your home used to be a private space and now because of social media, it’s as public as you taking photos of yourself every single day. So the ability to continuously dynamically change your home and have new items arriving we really think that this idea of dynamic ownership applies to the closet, the home, and beyond.

    Think about all the things that you don’t have to use every single day and bringing that into the physical world and think about the sustainability of this as well. The millennial and younger customer really cares about the fact that there’s a huge amount of waste. Over 80 percent of the closet is not used regularly. So to create a new contract with the customer where she could have the variety that she wants but she doesn’t have to accumulate all of this stuff that she doesn’t use. You couple that with the fact that this younger generation is living in cities where you don’t even have the space to house all of the extra stuff that you might have put in your garage.

    We’re Trying to Build the Amazon Prime of Rental

    It (revenue) really depends on the item. That metric changes every year based on our cost to serve, which goes down every year. It also matters what cost we procure the inventory at. We started a model last year which is a platform where brands are giving this inventory on consignment and we actually are revenue sharing with them on that inventory. It’s our own version of fulfilled by Amazon and it’s now a new revenue monetization stream for the 600 brands that we work with.

    You will see the continuous expansion over the next year into many different categories. Anything that you do not use every single day, we want to make it fiscally irresponsible for someone to not have a subscription to Rent the Runway. We’re trying to build the Amazon Prime of rental. Rent the Runway is primarily a logistics company. What we really do is we restore physical goods to perfect condition before we send them out to the next customer. We now know all of these different data points about any given fabric, how to restore it to perfect condition and how to maximize the turns while it still looks brand-new.


  • Google Unveils Stadia Game Streaming Platform and is Dead Serious About Eliminating Barriers and Making High-End Gaming Accessible for Everyone

    Google Unveils Stadia Game Streaming Platform and is Dead Serious About Eliminating Barriers and Making High-End Gaming Accessible for Everyone

    Google CEO Sundar Pichai unveiled their Stadia game streaming platform at the 2019 Game Developers Conference in San Fransisco today. Stadia is designed to bring high-end gaming to Chrome and other devices and aims to eliminate the many barriers to gaming. It will likely be a subscription service similar to Netflix but focused on games that can be played without a console right in Chrome or other devices.

    Sundar Pichai, CEO of Google, introduces Stadia, Google’s new streaming gaming platform at the 2019 Game Developers Conference in San Francisco:

    Biggest Impact of Gaming is How it Pushes Technology Forward

    Perhaps the biggest impact of gaming is how it pushes us to make big leaps in computing and networking power, high fidelity graphics, and the infrastructure that supports it all. All of it is pushing computing and technology forward and I find it really exciting. At Google, we have always believed that technology should adapt to people. Not the other way around. We’ve been building towards this vision for some time. For example, when we launched Chrome a decade ago we envisioned that it could be a modern platform for web applications. We wanted to bring the power of the web to everyone including use cases that seemed impossible at that time like high-quality games.

    Finally, we are making progress towards that goal. In fact, over the last two years, we’ve been hard at work on game streaming technology. Last Fall, we launched our first public test with Project Stream. But a technical test wasn’t the whole view of our ambition. It was probably the worst kept secret in the industry. Internally, we were actually testing our ability to stream high fidelity graphics over a low agency network. We learned that we could bring a triple-A game to any device with a Chrome browser and an internet connection, using the best of Google to create a powerful game platform.

    Google Committed to Paying Billions to Game Developers

    When we say best of Google, it always starts with our cloud and networking infrastructure. Our custom server hardware and data centers can bring more computing power to more people on planet Earth than anyone else. Today, we are in 19 regions, and in over 200 countries and territories connected by hundreds of thousands of miles of fiber optic cables. The best of Google also includes our open platforms that allow us to reach billions of people. With Google, your games will be immediately discoverable by over two billion people on a Chrome browser, Chrome Books, Chrome Cast, Pixel Devices, and we have plans to support more browsers and devices over time. That’s in addition to all of the people playing and watching games across YouTube and Google Play.

    When we build these ecosystems, we always take the approach that we only succeed when our partners do. Collectively, our partners across web, Google Play, and YouTube have earned more than $110 billion over the last four years alone. We are committed to this approach here as well. So now, we have focused on our next big effort, which is to build a game platform for everyone. And, when we say for everyone, we really mean it. It is one of our most cherished values as a company. Be it Android or Chrome or AI, we are dead serious about making technology accessible for everyone.

    Google is Dead Serious About Eliminating Barriers

    But, if you think about games, there are a lot of barriers for users to play high-end games. Beautiful graphics really need high-end consoles or PCs. And games don’t have instant access. Think about the way the web works. You can easily share a link and it works seamlessly. We want games to feel that way too. Instantly enjoyable with access for everyone.

    I think we can change the game by bringing together the power and creativity of the entire community, people who love to play games, people who love to watch games, and people who love to build games. That means all of you. We are really excited to work with you. We want to build a platform and we want you to show us what’s possible. And together, I think we can create a new games experience powered by best of Google and built for everyone.


  • Lilium eVTOL Jets Aim To Be First To Offer Ride-Sharing Autonomous Flights

    Lilium eVTOL Jets Aim To Be First To Offer Ride-Sharing Autonomous Flights

    Lilium is a company whose vision is to enable a world where anyone can fly, anywhere anytime, according to Lilium’s Head of Program Management, Andrew Welling. “We’re doing that via an all-electric vertical takeoff and landing (eVTOL) jets,” he says. “By 2025, we hope that everyone will be able to order one of our jets at the push of a button.” Eventually, Lilium aims to go completely autonomous.

    Andrew Welling, Head of Program Management at Lilium, discusses their goal of becoming the first company to offer autonomous ride-sharing electric jets in a feature produced by Amazon Web Services:

    The World’s First eVTOL Jets

    Lilium is a company whose vision is to enable a world where anyone can fly, anywhere anytime. We’re doing that via an all-electric vertical takeoff and landing (eVTOL) jets. It’s the world’s first eVTOL jets. We are hoping to have a service operational in the early 2020s. By 2025, we hope that everyone will be able to order one of our Jets at the push of a button. Our Jets our vertical takeoff and landing jets which means that they can take off from a normal helipad. They take off vertically, rising to a few hundred meters before they transition into a forward flight.

    For sure, our batteries are not light, they are obviously one of the heaviest components in our aircraft. But fundamentally, for the future of transport, it’s really important that we move to a world where we’re no longer reliant on fossil fuels. Our services are more like a ride-sharing air taxi service so we want this service to be accessible for anyone and not just the privileged few. The idea is that you’d be able to order a jet via an app on your phone. You would go to initially a defined landing pad to meet the jet, but pretty much it would be an on-demand service. You would be ride-sharing with others who are going to the same destination as you are.

    The world’s first eVTOL jet.

    The Aim is Autonomous Flight

    One of the greatest things about our design is the efficiency that you get through having a wing on the aircraft which can tilt. That means we can take off and land vertically but then when we transition to forward flights we actually get the efficiencies that you get from a winged aircraft. Initially, we will have a pilot on board but the aim is eventually to go to autonomous flight.

    We’re building our headquarters in Munich, Germany. That’s where we’re building up both our engineering teams, our production teams, and eventually where our core airline operations will be based. Our target is to have a service operational somewhere in the world by 2025.

    Lilium eVTOL Jets Aims To Be First in Offering Ride-Sharing Autonomous Flights


  • Text Conversations Build Customer Relationships, Says Twilio CEO

    Text Conversations Build Customer Relationships, Says Twilio CEO

    “We are starting to see companies where not only can they text you but you can text them,” says Twilio CEO Jeff Lawson. “That’s the nature of a conversation. That’s how you build relationships over time. It’s two way. The leading companies are figuring out that actually if you create this dialogue it creates great customer relationships and ultimately creates loyalty with customers. They feel connected to you.”

    Jeff Lawson, CEO of Twilio, discusses on CNBC how texting has evolved to two-way communications with customers which is helping drive loyalty and growth. 

    Every Company Should Build Great Digital Experiences To Compete

    Focusing on customers and focusing on growth is the only way you can (hit a billion-dollar run rate). That’s the only way you can do it. I remember talking to the company several years ago when we crossed the $100 million run rate. I pointed to the billion-dollar number and said this is a market and this is a company that can be one of the rare companies that can graduate from the $100 million status to the $1 billion status.

    I’m really proud of what we’ve accomplished. But every step of the way all you can do is focus on customers and continue to be attached to a secular trend. That trend is every company out there needing to focus on building great digital experiences for their customers in order to compete in the modern economy. That’s what we do.

    Text Conversations Build B2B Relationships

    We just launched a new product a couple months ago called Conversations. It’s not uncommon today, but a few years ago it was novel when a company could text you. Maybe a table is ready for a restaurant or your flight is boarding. Any of those kinds of things. Several years ago that was amazing. And we luckily power a lot of those companies. 

    Nowadays, we are starting to see companies where not only can they text you but you can text them. That’s the nature of a conversation. That’s how you build relationships over time. It’s two way. The leading companies are figuring out that actually if your create this dialogue it creates great customer relationships and ultimately creates loyalty with customers when they feel connected to you. 

    Text Messages Are Just The Beginning

    Think about Tesla. Tesla’s a company where you can text the service manager. Your car is in service and they might try to call you your phone rings and when you don’t know the number you don’t answer it. Now they can text you and tell you what needs fixed and you can text your approval. The companies who really understand how to build a great customer experience are figuring out that text messaging, not just text messages and notifications, is just the beginning. Building relationships is a two way thing. 

    Every Company Needs To Use Digital To Connect With Customers

    We just focus on the long term. We focus on customers. We focus on helping customers achieve their goals. We focus on the biggest trends that are going on in the industry which is every company needing to use digital to connect with their customers. When times are good and when times are bad every company needs to focus on growing their business, making their customers happy, and making their customers become loyal repeat customers. That’s the business that we’re in.

    Text Conversations Build Customer Relationships, Says Twilio CEO Jeff Lawson