[MUSIC] I have always been interested in loyalty programs. I think it's a great way to create value for a company. I was discussing the topic at an executive committee meeting, and the marketing director picked up the topic and said, this is exactly what I need. He said, in order to make it work, I will need to have a few more data. I need to integrate this data into a loyalty program. He turned to the CEO, and said to the CEO, can you do that for me? The CEO thought about it for a while, and said, of course, I can do it. It's a bit complex, so I will need probably 18 months to be able to do that. At this moment. I knew the CEO would never do the project. I know new the marketing director would do something different, and actually he did. He went to see his favorite advertising agency, explained to them the problem, and the advertising agency said, okay, we'll run a royalty program for you. In three months, they have set up the first database, and during the course of the year, they progressed a lot. They changed the database and start to integrate many things. I was thinking to myself, something is happening there. Because we've been doing so much initialization with IT. IT is not about to cope with development of business. And we started our business, to do some research. We came out with two speed IT, what is two speed IT? Two speed IT is the fact that, you cannot answer, all we need is a business with just industrial speed. Industrial speed is very good, if you want to optimize cost, and if time is important but not that important. So you must segment this application pot for you. In some cases, applications should be developed at industrial speed, and it's very fine. In some other cases, applications will be derived by digital speed. And that means a different way of doing things. So, when should you go for industrial speed? When it's predictable, when you have long lead times. When you can have teams that are functionally organized. A good example for that, could be accounting. We've been doing accounting for 500 years. The long wedge is very well known by everyone. The ambiguity about the requirements is minimal. Of course it is more than accounting, but that continues a good example. Digital, when it's unpredictable, when you need speed, when you are speaking in days or weeks. When you need flexibility, and when you have to work with multidisciplinary teams. Then it's a good way to do digital. Of course, loyalty, sharing, everything that has to do with the consumer is about digital speed. I would like to tell you something that is a bit counterintuitive. So in order to do things well, you have to segment the application thoughts for you. And then you can decide digital or industrialize. But people often make a mistake. Is this thing the digitalization and digital speed is for a very simple application. Something that you can experiment. So it would be an application for a tablet that you do in two weeks. And you can do it everywhere in the company. And many companies, say, we are very much digitized because you see. That's in the consumer goods division, I have a lot of tablet application in my business division. I have a lot of applications between B2B's application. So this is all fine. But remember something about these possession. The power of these possession comes from the power of a platform. Why is digitization a good idea? Because if you have one platform, and you have scale effect on the platform, you can realize the promise of IT. The promise of IT is to be able scale from the platform. If you think that successful software in the world, If I take Amazon, for example, it's one platform. If I take eBay, it's one platform. Google is one platform. And there's one worldwide platform, which scales a lot. This is where the advantage come from. So when you go for digital speed, it is of course a way for prototype. But not only going for prototype. You should aim at building your platform, and then, be any agile on your platform. To give you an example, with an electrical company, we have build a new platform for consumer relationship. And the platform was built so that every three months, you could set up in your applications. And every month, you could see what was working and what was not working. So because of government was very strict, so platform was for all countries. And this was very tough, because we had to explain the different country people, that they will get the same requirements. But then every three months, they could get new requirements that could be adapted to everyone. And every month, we are looking at the adoption rates of the platform. Are the new features being applied or not? Are they popular or not? And if they are not popular, is it because it has a wrong feature or is it because we have not deploy it well. So, even a digital speed, you can still be on a monthly basis, but if you have not sold of the platform of the architecture, then you will not give your company a confident advantage. So, goal segments, put in place two speeds in your companies, and think about platforms. Good luck with that.
