Is Your Business Real-Time Ready? How RTB Drives +62% Revenue, +20% Innovation & +22% Operational Efficiency 🚀 🤔

Last week’s ADAPT 2024 CIO Edge conference in Sydney was a gathering of the best minds in technology and business, with 180 CIOs and IT leaders coming together to discuss the future of digital transformation.

Representing 39% of Australia’s $1.9 trillion GDP, these leaders are at the helm of organisations driving significant economic impact. One of the most electrifying ⚡️ sessions was the keynote by Dr. Peter Weill , Chairman of the MIT CISR (MIT Center for Information Systems Research) (CISR), who shared groundbreaking research on the Real-Time Business (RTB) model produced in conjunction with research from Insight Partners — offers a new frontier in business operations, performance and competitive advantage.

So I decided to connect some dots for those who have been following this evolution for a while... read on to lear how RTBs outperform their peers in growth and margin through real-time operations, transparent decision-making, and seamless customer journeys.

This article dives into the latest insights from MIT Sloan School of Management and Insight Partners recently released research on RTBs, complemented by key findings from Salesforce 6th Edition "State of the Connected Customer in 2024" report" and insights from multiple Digital Experience and CX early indicators...and now trends from the past 24 months.

Together, these insights paint a compelling picture 🎨 of the future of business, where real-time operations are not just a competitive advantage but a necessity.

What is a Real-Time Business? 🕒

A Real-Time Business (RTB) is an organization that can respond instantly to opportunities and challenges by executing key business processes through automated, digitised operations and employee-driven, data-backed decisions. RTBs are characterised by their ability to operate with agility, utilising real-time data to empower decision-making at all levels of the organisation. ⚙️

The Benefits of Becoming a Real-Time Business 🎯

The MIT and Insight Partners research highlights the substantial advantages that come with adopting the RTB model:

• 62% Higher Revenue Growth: RTBs are able to capitalise on market opportunities faster, driving substantial growth. 🚀
• 97% Higher Profit Margins: By streamlining operations and reducing decision-making delays, RTBs achieve nearly double the profit margins of their competitors. 💸
• 20% Enhanced Innovation: RTBs lead in innovation, quickly bringing new products and services to market. 🌟
• 22% Improved Operational Efficiency: Real-time data minimises the need for double-checking, speeding up processes and reducing errors. ⏩
• 17% Better Risk Management: With real-time monitoring, RTBs can manage risks more effectively, responding to issues as they arise. 🛡️

Trust in data is the basis for RTB success

Trusting vetted data across the company reduces the need for double checking, which improves operational efficiency and enables better risk management. Most importantly, both customers and employees are more likely to be satisfied when answers, actions, or both are immediate.

Four Pillars of Real-Time Business Success 🏛️

MIT identifies four key capabilities that distinguish top-performing RTBs from others:

1. Real-Time Data for Decision-Making: The foundation of an RTB is its ability to access and trust real-time data across the organization. This data enables automated processes and supports employee decision-making, tracking performance on key metrics, and managing risks in real time. 📊
2. Integrated Customer Experience: RTBs offer seamless, personalised customer journeys. Real-time data enables businesses to support customers at every touchpoint, providing self-service options and tailored solutions that meet specific needs. 🌐
3. Business Agility: An RTB’s agility lies in its ability to sense and respond to threats or opportunities without lengthy approval processes or reorganisation. This agility is fuelled by real-time data and streamlined governance, allowing employees to take swift and accountable actions. 🏃♂️
4. High-Quality Employee Experience: Automation frees employees from repetitive tasks, enabling them to focus on higher-value activities like innovation and process improvement. Real-time dashboards also provide insights into the company’s performance, fostering a sense of contribution and engagement. 🎨

A Mindset Change 🤔 is Required to Become a Top-Quartile Real-Time Business

Most companies need to move from relying on gut feelings and experiences to evidence-based decision-making, with high levels of trust in and empowerment of employees, along with increasing automation and the use of AI, such as by alerting customers to a potentially fraudulent banking transaction.

Mind that Digital Experience Gap! 🕳 4/5 organisations rank Digital Customer Experience (DCX) as extremely or very important, yet 43% of executives cite limited cross-department alignment and collaboration as a top challenge, along with siloed systems. 🤦♀️ Source: CMSWire - State of the Digital Customer Experience Report 2024

AI and Automation: The Backbone of Real-Time Business 🤖

AI and automation are central to the success of RTBs. These technologies enable real-time decision-making by automating routine tasks and providing advanced analytics that empower employees to make data-driven decisions in service of connected customers, at speed. According to the Salesforce report, customers are increasingly expecting companies to leverage AI to deliver faster, meaningful, and more personalised experiences:

Q. Why Real-Time, Why Now? ⚡💨

A. Our increasingly always on, 24-7 empowered, informed connected customer.

Rising costs and shifting priorities have customers rethinking their relationships with brands. Meanwhile, companies are feeling pressure to increase efficiency.

Although evolving technologies like generative AI intelligence promise to elevate their experiences, customers are wary of risks involved.

This creates an opportunity for companies to drive differentiation through technology strategies grounded in trust and human connection. 🤝

According to the latest Salesforce "State of the Connected Customer" Report, there are a few primary drivers for this increased expectation driven by both B2C and B2B buyers:

1) A Changing World Shakes Up Customer Expectations 📈 🌏💥

Economic and technological shifts are changing customer priorities, behaviours, and expectations. The pressure is on for brands to step up. 81% of customers expect faster service as technology advances.

And 80% of customers say the experience a company provides is as important as its products and services. ✨

Most customers feel companies treat them as a number rather than as an individual. This is particularly true of consumers, whose relatively small transactions don’t prompt the tailored attention of large and slow-moving business deals.

Similarly, 63% of business buyers say most customer experiences fall short of what they know is possible, highlighting the need for enhanced personalisation and consistency. 🤖

Customers are also increasingly demanding a mindful approach to their data. Well aware of its value, customers are increasingly protective of their data. However, companies have opportunities to earn their trust.

For example, customers are more comfortable providing data if they’re given a clear explanation of how it will be used — not as details buried in a long user agreement. This is partially in response to the general sense that not all companies use data to maximise benefit to customers, and that they collect more of it than they need.

2) The Customer Engagement Playbook Is Evolving...at Speed

Customers have revealed the recipe for companies to earn their loyalty: consistency, efficiency, and a human touch. Regardless of where they engage, customers expect companies to meet their needs all the same.

• 74% of customers expect to be able to do anything online that they can do in-person or by phone. 💬 💻 📞 📲
• 79% of customers expect consistent interactions across departments, but only 55% feel they receive a connected experience. 🔄
• 88% of customers say good customer service makes them more likely to purchase again, underscoring the importance of customer service in driving loyalty." ❤️
• 77% of customers expect to interact with someone immediately when they contact a company." 🕒

3) The Trust Gap Widens as AI Goes Mainstream

Brands are turning to generative AI to boost efficiency while improving customer engagement. Customers — wary of the technology risks — demand a thoughtful approach built on trust. Eighty percent of customers say it's important for humans to validate AI’s outputs.

• "68% of customers believe advances in AI make it more important for companies to be trustworthy." 🔐
• "Customers increasingly expect proactive service, with 72% preferring companies that can anticipate their needs." 🔮
• "Customers are more comfortable providing data if they’re given a clear explanation of how it will be used—76% say transparency is key." 📊
• "Customers stress the importance of a human touch in the AI era, with 81% wanting a human to review and validate AI outputs." 🧠

These insights reinforce the importance of leveraging real-time data, AI, and automation to meet rising customer expectations for speed, personalisation, and trust.

4) The Dynamic Nature of APJ's CX Expectations call out the need for Real -Time Business Proficiency 🌏

In a recent article, we highlighted that Customer Experience (CX) is evolving at lightning speed, and staying ahead is key to driving growth and customer loyalty. 🌟 Following recent reports from Forrester indicating stagnation and decline in all three areas of Customer Experience (CX) quality — effectiveness, ease, and emotion - in both the Asia Pacific and North America, there has been an unprecedented third-year drop in consumer perceptions of CX quality. 😖

Delving into the unique CX landscape in Asia Pacific & Japan (APJ), drawing insights from the CX Network's 8th Annual State of CX report, we examined the unique consumer preferences, priorities, challenges and the opportunities that come with it...including:

• 👎 Stagnation in CX Quality: Recent reports from Forrester show stagnation and decline in CX quality across the globe - effectiveness, ease, and sentiment
• 📈Asia Pacific CX Market Growth: Worth $120 billion in 2024, with a 15% annual growth rate
• 🛍 🛒 Demand for Convenience: 60% of APAC consumers prioritize convenience, driving the popularity of super-apps like Grab and GOJEK LTD.
• 📲🏃♀️ Instant Service Expectations: 44% of respondents highlight the demand for instant service and delivery. 🚚 📦
• 🤖 🛡 AI and Data Awareness: 33% of CX strategies are influenced by consumer awareness of AI and data usage.
• 📱 🎬 Social Media Influence: 29% of consumers use social media for product research, with platforms like TikTok, Wechat, LinkedIn and YouTube playing a major role.
• ♿👩💻 Accessibility and Inclusivity: Accessibility has entered the top-10 investment priorities, with organisations holding budgets over $2.5 million placing it as the fifth most selected priority.

APJ's unique market dynamics, with its rapid economic growth and young, digital native population, present a vibrant landscape for businesses to thrive. The ability to adapt and meet evolving consumer expectations in real time can be a game-changer. Check out the detailed deep dive here 💫

RTB takes a "Disruptive Village": Cross-Functional Alignment & The Power of X-Teams 💪

A critical aspect of becoming a successful RTB is the alignment across different functions within the organisation. Cross-functional teams, or X-Teams, bring together diverse expertise to drive innovation and operational excellence with the customer experience front and centre.

The traditional model, whereby teams focus on internal processes, roles, and goals, is no longer enough, according to MIT Sloan School of Management leadership professor Deborah Ancona. The model that organisations need now is an X-team. 💥 Adopted by the likes of ANZ (ANZx), Endeavour Group (endeavourX) and Woolworths (WooliesX) X-teams are built on the concept of “out before in,” with cross functional team members (marketing, UX, product, engineering, customer support, CX, data science) externally oriented to learn and discover what’s happening in their world through ambassadorship, sense-making, and task coordination. 🌏 🔭 Learn what makes an X-Team successful here

This alignment is key to ensuring that real-time data and automation are leveraged effectively across all areas of the business through:

• Breaking Down Silos: RTBs eliminate silos by fostering collaboration between departments such as IT, marketing, sales, and customer service. This ensures that real-time data is accessible and actionable across the organization, leading to more cohesive and efficient operations. 🔗
• Unified Goals: X-Teams align around common goals, using real-time insights to prioritise initiatives that deliver the most value. This unified approach accelerates decision-making and ensures that all parts of the organization are working towards the same objectives. 🎯
• Continuous Improvement: Cross-functional alignment enables continuous improvement by allowing teams to quickly identify and address issues, test new ideas, and scale successful initiatives. This iterative process is essential for maintaining agility in a fast-paced market. 🔄

Key Insights:

🛒 X-teams focus on "out before in," combining innovation with execution.

They come in tiers, with core, operational, and outer members for flexibility.

💡 X-teams can be applied anywhere in an organisation, promoting nimbleness.

🕒 Timing matters; they should pulse attention and effort as needed.

🎓 Educating the workforce is crucial to gain buy-in. 📚 Encourage stories and skill sharing to power the entire organisation.

🛤️ Step-by-step changes and clear goals lead to innovation success. 👀 Use a funnelling system to manage the best ideas.

🚧 Establish guardrails to direct innovation effectively.

Real-Time Business in Action: United Airlines Case Study ✈️

United Airlines offers a compelling example of how a company can successfully transition to an RTB model. By investing in real-time data and empowering its workforce, United has significantly improved its operational efficiency and customer satisfaction. The result?

• Revenue Growth and Profit Margins: United achieved a 19.5% revenue growth and a net margin of 6.3% in 2023, outperforming the industry average. This success is largely attributed to its real-time operations and data-driven decision-making. 💹
• Enhanced Customer Experience: United’s mobile app, used by 85% of its customers, provides real-time information and enables proactive service. The app can anticipate a flight delay and offer rebooking options before the passenger even arrives at the airport, showcasing the power of real-time data in enhancing customer experience. 📲
• Operational Agility: United’s ability to manage complex operations in real-time, such as adjusting flight plans in response to weather changes, demonstrates the power of real-time data in improving both customer experience and operational efficiency. 🌦️

Learn more from CMSWire 's Myles Suer 's recent article examining how United Airlines turned real time data into CX gold.

A Spotlight on RTB in B2B 🌟

Real-Time Business principles are not just transforming B2C industries but are also reshaping the B2B landscape. Salesforce’s latest report provides compelling insights into how RTB is making waves in the B2B sector:

• Tougher Sales Cycles Raise Standards of B2B Engagement: B2B customers are now more selective, with longer sales cycles forcing businesses to deliver more value at every interaction. RTB models help companies stay ahead by providing real-time insights that allow for more personalised and effective engagement. 📈
• Customers Prefer Self-Service When the Task Is Simple: 72% of B2B buyers prefer self-service options for straightforward tasks, highlighting the need for seamless, automated processes that RTBs excel at providing. 💻
• Human Assistance Is a Differentiator: While automation is key, 81% of customers still value human interaction when dealing with more complex issues, making it crucial for RTBs to balance automation with accessible human support. 🤝
• Service Experiences Spur Purchases and Advocacy: 88% of B2B buyers are more likely to purchase again after a positive service experience, showing that real-time, proactive service is not just a perk but a business imperative. ❤️
• Proactive Service Is Rare and Prized: Despite its importance, only 28% of B2B companies offer proactive service, presenting a significant opportunity for RTBs to differentiate themselves in the market. 🔮

These statistics underscore the growing importance of real-time capabilities in B2B environments, where the stakes are high, and customer expectations are continually evolving. The key learning here is, will you be at the front of this pack? Or left catching up?

🚧 Hurdles to Becoming a Real-Time Business 🚧

While the benefits of becoming a Real-Time Business (RTB) are clear, the transition is not without its challenges. Organisations must be prepared to navigate the following obstacles:

1. Data Silos 🗂️: Many organisations struggle with data silos that prevent real-time data from being accessible across departments. Breaking down these silos is essential for achieving a unified, real-time business.
2. Legacy Systems 🖥️: Outdated technology and legacy systems can hinder the implementation of real-time processes. Upgrading or replacing these systems can be costly and time-consuming.
3. Change Management 🔄: Shifting to a real-time business model requires a significant cultural shift. Employees need to adapt to new ways of working, which can be met with resistance.
4. Cybersecurity Risks 🔒: Real-time data access increases the risk of cyber threats. Organisations must invest in robust cybersecurity measures to protect their data and operations.
5. Cost of Implementation 💰: The transition to real-time business operations can be expensive, requiring significant investment in technology, training, and infrastructure.
6. Data Accuracy 📊: Real-time decisions rely on accurate data. Inconsistent or incorrect data can lead to poor decision-making and operational inefficiencies.
7. Integration Complexity 🔧: Integrating real-time systems with existing infrastructure can be complex, requiring significant technical expertise and resources.
8. Scalability 📈: Ensuring that real-time systems can scale with business growth is a challenge, particularly for rapidly expanding organisations.
9. Regulatory Compliance ⚖️: Adhering to industry regulations while implementing real-time systems can be challenging, particularly in highly regulated sectors.
10. Employee Training 🎓: Ensuring that employees have the skills and knowledge to effectively use real-time data and systems is critical but often overlooked.

Navigating these challenges is crucial for organisations aiming to successfully transition into a Real-Time model. 🚀

Moving Toward a Real-Time Business - Crawl, Walk, Run 👣 🚶♂️🏃♂️

To overcome these challenges and transition to a real-time business model, organisations can take the following steps:

1. Assess and Upgrade Technology: Evaluate existing systems and identify areas that require upgrades or replacements. Invest in technology that supports real-time data processing and analytics. 🔧
2. Foster a Data-Driven Culture: Encourage a culture where data is at the center of decision-making. Provide training and tools to help employees understand and utilize real-time data effectively. 📊
3. Break Down Silos and Internally disrupt with X-Teams: Implement cross-functional teams to ensure data and insights are shared across departments with a focus on the external (Xternal) and breaking existing process. Foster collaboration to break down barriers and improve communication. 🔗
4. Invest in Cybersecurity: Prioritise cybersecurity to protect real-time data and operations from potential threats. Implement robust security protocols and regularly update them to address emerging risks. 🛡️
5. Pilot and Scale: Start with pilot projects to test real-time business processes in specific areas. Use the insights gained to refine and scale these processes across the organization. 🚀
6. Implement AI and Automation: Leverage AI and automation to enhance real-time decision-making, improve efficiency, and personalise customer experiences. 🤖
7. Enhance Data Accuracy: Implement processes and tools to ensure data accuracy, consistency, and integrity across all real-time systems. This is crucial for making informed decisions. ✅
8. Focus on Change Management: Develop a change management strategy to help employees adapt to the new real-time business model. Provide training and support throughout the transition. 🌱
9. Ensure Scalability: Design real-time systems with scalability in mind, ensuring they can grow and adapt as the business expands. This includes considering future data volume and processing needs. 📈
10. Monitor and Optimise: Continuously monitor real-time systems and processes, using analytics to identify areas for improvement. Regularly update systems to keep pace with technological advancements and business needs. 🔄

Looking Forward: Embracing Real-Time Business at ADAPT Digital Edge 2024 🔮

As we look forward to next month’s ADAPT Digital Edge 2024 (22 October), the focus will be on building on these insights and developing the cross-functional playbook to embrace Real-Time Business methodologies with a focus on “Digital Product Excellence, Digital Experience & the Power of the X-Team”.

This forum will delve into how organisations can harness the power of cross-functional teams (X-Teams) to drive digital transformation and operational excellence. I'm looking forward to joining an stellar lineup of speakers (some of my favourite hears & minds) and 100s of CX and Digital leaders from Australia's largest businesses including:

• Ryan Brosnahan - Chief Transformation Officer at Bendigo and Adelaide Bank 🏦
• Michelle Finneran Dennedy - CEO at Privacy Code, formerly Global Chief Privacy Officer at Cisco + McAfee 🔒
• Dr. Gayan Benedict - CTO at Salesforce , former CIO at @RBA 🧠
• Dominic Price - Work Futurist at Atlassian 🚀
• Dayle Stevens OAM - Executive Data & AI at Telstra tra, former GM Data at AGL 📡
• Andreas Marmaras - General Manager Product & Technology Domain Insight at Domain
• Glenn Carmichael l - Head of Tech Strategy at Telstra tra 📲
• Tim Hope - Chief Technology Officer at @Versent 🖥️
• Matt Boon - Senior Research Director at ADAPT 📈
• Jim Berry - CEO & Founder at ADAPT 🎙️
• Gabby Fredkin - Head of Analytics & Insights at ADAPT 🧮
• Byron Connolly - Head of Programs & Value Engagement at ADAPT 🤝
• Peter Hind - Principal Research Analyst at ADAPT 🔍

I'm particularly excited to be joining the panel focused on exploring how digital leaders can leverage real-time data, AI, and cross-functional alignment to modernise and transform their businesses. We’ll discuss the strategies needed to achieve digital product excellence, reduce customer churn, and move customers from intent to transaction across their buying journey in ...you guessed it... real time.

The convergence of these insights from MIT, Insight Partners, Salesforce and CMS offers a pre-briefing blueprint for businesses aiming to thrive in today’s fast-paced market as we move faster than ever before, and....slower than we ever will.

By focusing on the four key capabilities—real-time data, integrated customer experience, business agility, and employee experience—organisations can position themselves for sustained success in this rapidly evolving landscape. 🌍

Final Thoughts: The Future is Real-Time 🕒

Q. How real time is your business? ...And how can we help you move toward this goal?

Many companies are already working to become RTBs. Imagine what your company would look like if the key decisions, operations and proactive CX interactions were made in real-time based on trusted data?

The journey to become an RTB starts with creating and consolidating enough trusted data to make key decisions, then empowering employees to empower customers, and finally predicting and satisfying customer and business needs in real time as a cross functional "disruptive village" united team - whether your business operates in B2B or B2C markets.

The real-time business model is not just a strategy—it’s the future of how successful companies will operate. By embracing real-time data, AI, and automation, businesses can respond to market demands faster, create more personalised customer experiences, and empower their teams to innovate continuously.

It requires a break with historic, not a break with trust or understanding.

While the transition comes with challenges, the rewards are clear: faster growth, higher profits, and a stronger competitive edge.

The ability to operate in real-time will be the defining characteristic of industry leaders and its ultimately our tribe that is on the forefront - looking forward to moving forward together, adapting, innovating, and leading in real time ;)

Until next time… stay real-time ready! 🚀

C.

Carrie Mott

Founder & Managing Director -

www.flywheelmarketing.net