Posts Tagged ‘Corporate Strategy’

Research Report: Digital ARTISANs – The Seven Building Blocks Behind Building A Digital Business DNA

Shift to Digital Businesses Requires A Transformation Of Leadership And Organizational DNA

The discussion about digital business often goes deep into the five pillars of digital technologies.  In fact, the convergence of these pillars have spawned the latest and trendiest iterations of technology from enabling the sharing economy to 3D printers to wearables that drive sensor and analytical ecosystems.  As organizations contemplate how these broad based digital business trends will disrupt existing business models, leaders can apply Constellation’s Futurist Framework [Download the report snapshot] and consider dimensions from the political, economic, societal, technological, environmental, and legislative (PESTEL) angles.  However, even after much planning, astute CXO’s from market leading and fast follower organizations quickly realize that technology and process alone is not enough to transform their organization’s DNA inside the organization.

It’s Still The People, Stupid!

Despite robots potentially taking over by 2020 (snark), people still play a key role in the success of digital business transformation.  In the shift from selling products and services to promising outcomes and experiences, information flows faster.  Every node and person in the digital network must react more quickly, yet also needs to be more intelligent.  Success comes faster but so does failure.  Thus, both the seduction of massive success and the fear of facing massive failure provides a great catalyst to design, influence, infuse, or transplant the proper digital DNA.

The DNA Of Digital Artisans Blend The Intelligence Of Quant Jocks With The Co Innovation Skills Of The Creative Class

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Research Summary: Next Generation CIOs Aspire To Focus More On Innovation And The Chief Digital Officer Role

Executive Summary

Constellation shares with its clients the fourth annual groundbreaking survey of CIOs later this week.  The 2014 survey interviews respondents about their priorities by CIO persona.  Constellation identified infrastructure, integration, intelligence, and innnovaiton as the four personas of the next gen CIO in 2011.

Survey results show that while CIO’s prefer to spend more time on innovation projects, most CIOs must spend their time battling the reduction of cost in IT delivery.  In the shift towards dominating digital disruption, CIOs can only move as fast as their organization’s DNA will allow while driving transformation. Using Constellation’s organizational DNA framework, CIOs can understand how much change they can expect their organization to consume and gauge their ability to impact the thought process and culture.  An excerpt of some of the findings can be found below:

A. CIOs Must Battle Keeping The Lights On Despite A Desire To Focus On Innovation

In Constellation’s recent CIO survey of 119 respondents, over 44% expressed that reducing the cost of IT delivery remained the number one priority (see Figure 2).  However when asked what should be the number one priority almost 44% expressed that bringing innovation to the business was the number one requirement (see Figure 3).

Figure 1. CIOs Still Prioritize Reducing IT Costs

Figure 2.  Bringing Innovation to the Business Is Top Of Mind On The CIO Agenda

B. CIOs Must Overcome Three Barriers To Bringing Innovation To The Business

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Monday’s Musings: The Chief Digital Officer In The Age Of Digital Business

Market Leaders and Fast Followers Prepare for Digital Business In 2014

Conversations at Constellation’s Connected Enterprise last week validate a larger trend in the market place.  The audience of 220+ early adopters with 75% representing line of business and 25% in IT highlighted the convergence of the five forces of consumerization described in 2009 and 2010.  This convergence of these five pillars of digital business now form the foundation of all future digital business strategy and drive customer experience, matrix commerce, future of work, data to decisions, consumerization of technology, and digital marketing (see Figure 1.).  In fact, market leaders and fast followers have embraced this strategic direction in their 2014 planning.

Figure 1. Convergence Of The Five Pillars Drive Digital Business Strategy

Emerging Trends In 2014 Digital Business Strategy Reflect The Shift To Digital Business

As Constellation works with leaders to define their 2014 business strategies, digital transformation plays a key role.  Many organizations will:

  1. Recognize that they no longer sell products and services, as buyers seek experiences and outcomes.
  2. Democratize the data to decisions pathway to enable innovation.
  3. Realize that B2B and B2C are dead. It’s a P2P and M2M world.
  4. Focus on context as right time relevancy beats real time information overload.
  5. Shift from engagement to personalization at scale.

(A full update will be posted in Harvard Business Review soon)

The Bottom Line: Organizations Can Expect The Rise Of Chief Digital Officers

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Event Report: Day 1 At Oracle Open World 2013: The Quest For Innovation #oow13

Past Oracle Open Worlds Have Disappointed Customers and Partners

Let’s be frank.  The past five years at Oracle Open World have disappointed even the faithful.   The over emphasis on hardware marketing and revisionist history on cloud adoption bored audiences.  The $1M paid advertorial keynotes had people walking out on the presenters 15 minutes into the speech.  Larry Ellison’s insistence on re-educating the crowd on his points subsumed the announcements on Fusion apps.   Even the cab drivers found the audience tired, the show even more tiring.

Oracle went from hot innovative must attend event to has been while most industry watchers, analysts, and media identified shows such as Box’s BoxWorks, Salesforce.com’s DreamForce, and Exact Target’s Connections as the innovation conferences in the enterprise.  These events such as Constellation’s Connected Enterprise, capture not only the spirit of innovation but also provide customers a vision to work towards.  Hence, most believe Open World could use much needed rejuvenation and a shot of innovation juju (see Figure 1.)

Figure 1. Oracle Open World Lights Up San Francisco From September 22nd to September 27th

“Next Slide Please”: Oracle Enters A Period Of Reinvention At #OOW13

Walking through the event on Saturday (Day 0) and today (Day 1), one will notice a slight change in the spirit of the event. While half the base is die hard Oracle Red Stack customers (i.e. those who grew up from database to middleware to apps), the good news is the other half of the Oracle customers who came in through acquisition (i.e. or some say by accident) are present in larger numbers.  These customers by acquisition sought best of breed, took more risks, and fought in some cases not to be on the Oracle Red Stack.

For Oracle to win the innovation battle, the company must win over the mind share of the Oracle customers by acquisition.  In fact, these customers represent the early adopters representing market leaders and fast followers while the core Oracle Red Stack is more cautious adopters and laggards (see Figure 2).  Market leaders and fast followers have key components required for successful building blocks of corporate IT and often have line of business leaders that push the envelope.  Oracle must tap into that spirit in order to move its base forward towards innovation.

Figure 2. Organizational DNA Determines Pace And Appetite For Disruptive Tech Adoption

Open World 2013 Attempts To Change The Tenor Of Oracle’s Outward Conversation

In the spirit of innovation, attendees can expect six distinct mega themes to emerge from this uber event catering to 60,000 physical attendees and potentially 100,000 online.

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Monday’s Musings: NSA PRISM Scandal Hurts US Cloud Companies And Hastens The Return Of On-Premises Software

Non-US Based Organizations And Even Some US Organizations Will Not Tolerate Snooping In A Post PRISM World

Since the Edward Snowden PRISM revelations, Constellation has received a steady stream of inquiries on cloud strategy.   In fact, nervousness runs high among many non-US based companies using services from US based cloud companies across the cloud stack.  In early August 2013, the Information Technology & Innovation Foundation put out its report “How Much Will PRISM Cost the U.S. Cloud Computing Industry” Assuming that 20% of current clients switch to a non US based provider,  the report estimates a loss of $22 to 35B by 2016.

Constellation agrees.  All signs point to an anti-US stance until the security issues is addressed.  The odds on the US government moving fast on this issue are as good as Major League Baseball players or Tour de France Cyclists honoring a performance enhancement drug use ban.  In fact, Constellation is aware of at least 50+ contracts that have been put on hold or cancelled in the past 30 days.  With the EU’s Nellie Kroes already sounding the alarm bells in a way she only can, cloud buyers have taken notice.

The Bottom Line: Clients Should Consider Alternatives To Pure Cloud Models And Encryption Technology

Interesting enough, fifteen years into the cloud revolution, talk has rekindled about building on-premises software in light of this scandal. Unfortunately, the last major on-premises software company to receive funding squandered it all in 2005 and retooled to the cloud. Furthermore, a few entrepreneurs are looking at VC funding to take some key systems back on-premises.

However customers do not have time to wait for new software to arrive in the on-premises deployment option.  In the meantime, a few near term strategies have emerged:

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Research Summary And Speaker Notes: The Identity Manifesto – Why Identity Is At The Heart of Digital Business

Forward And Commentary

Constellation Research keynoted at Ping Identity’s Cloud Identity Summit 2013 in July.  Gathered in front of the Identerati,  an Identity Manifesto was presented.  The research behind that manifesto has been summarized here in this summary.  The final big idea research report will offer insight into four of Constellation’s primary research themes, the Next-Generation Customer Experience, The Future of Work,  Matrix Commerce, and the Consumerization of IT and the new C-Suite.

A. Introduction

Identity often means many things to many people for good reasons. Traditional definitions of identity for the identity and access management professional have revolved around standards for authentication, access, authorization, and management.

B. Research Findings – Identity Expands Beyond Enterprise Despite Stuck in Massive Standards Hell

While standards such as SAML, Open ID, OAuth 2.0 address the technical side, the rise of consumer and enterprise social networks has spawned a consumer identity that reflects a digital ubiquity of the individual. Facebook, Google, and Twitter now dominate most social logins. Users expect their identity to be transportable from personal to work environments.

However, a limitation exists between personal and work worlds. In fact, the facets of one’s identity remain isolated and separated by not only our digital and analog presence, but also by our inability to deliver context across our worlds. Why? The lack of context separates our personal life from our work life and creates artificial barriers by role, relationship, and a host of other factors.

The reality – identity plays a multi-faceted role for each individual. The business implications of identity after authentication, authorization, access, and availability touch on commerce, work lives, personal lives, and engagement with each other. Without a more comprehensive view of identity, organization and individuals will continue to undermine the strategic role of identity in the context of business. Identity is a unifying factor in the current transformation to a digital world.

The Identity Manifesto Relates Identity To Work, Life, And Society

Identity plays a central role in the future of business and is a unifying point. The seven points in the identity manifesto set the stage on the future of identity (see Figure 1).

Figure 1. Seven Point in The Future of Identity – The Identity Manifesto


The Bottom Line: Herald The Reputation Economy – Identity All Comes Down To Trust and Transparency

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Monday’s Musings: Understand The Four Organizational Personas Of Disruptive Tech Adoption

Pace of Innovation Exceeds Ability To Consume

Rapid innovation, flexible deployment options, and easy consumption models create favorable conditions for the proliferation of disruptive technology.  In fact, convergence in the five pillars of enterprise disruption (i.e. social, mobile, cloud, big data, and unified communications), has led to new innovations and opportunities to apply disruptive technologies to new business models.  New business models abound at the intersection of cloud and big data, social and mobile, social and unified communications, and cloud and mobile.

Unfortunately, most organizations are awash with discovering, evaluating, and consuming disruptive technologies.  Despite IT budgets going down from 3 to 5% year over year, technology spending is up 18 to 20%.  Why?  Amidst constrained budgets, resources, and time limits, executives are willing to invest in disruptive technology to improve business outcomes.  Consequently, successful adoption is the key challenge in consuming this torrent of innovation.  This rapid pace of change and inability to consume innovation detract organizations from the realization of business value.

Organizations Fall Into Four Personas Of  Disruptive Technology Adoption

A common truism in the industry is “Culture trumps technology”.  As organizations apply methodologies such as Constellation’s DEEPR Framework in improving adoption, leaders must first determine which of the four personas best fits their organization’s appetite for consuming and innovating with disruptive technologies.

The personas of disruptive technology adoption assess organizational culture in two key axes (see Figure 1).  The first is how incremental or transformational an organization looks at applying disruptive technology to business models.  The second assesses how proactive or reactive an organization is in carrying out new initiatives.  Based on these dimensions, the four personas include:

  1. Market leaders. Market leaders prefer to drive transformational innovation.  They look at technologies as enablers in disrupting business models.  They see competitive differentiation in delivering outcomes to customers. Market leaders accept failure as part of the innovation process.  They fail fast and move on.
  2. Fast followers. Fast followers prefer to react to the success of market leaders and their experiments.  When they sense success, they tend to jump in.  Fast followers do not like to fail and rapidly apply lessons learned from market leaders into their road maps.  Fast followers tend to deliver scale in the markets as a counter balance to arriving later in the market.
  3. Cautious adopters. Cautious adopters proactively deliver incremental innovation.  They tend to take a more measured approach and spend more time studying how they can improve an existing success than creating a transformational change.  Cautious adopters often come from regulated industries where security and safety are paramount objectives.
  4. Laggards. Laggards tend to procrastinate on applying innovations to their business models.  They prefer not be bothered by trends and will only react when the trends have moved beyond mainstream.  They see value in waiting as prices will drop over time as success rates increase over time.  Laggards enjoy waiting.

During the interviews and discussions with the 2012 Constellation SuperNova award participants, key questions emerged in the decision process on whether to adopt or pass on a disruptive technologies.  These questions aligned well with the four personas of disruptive technology adoption.

Figure 1.  Organizations Should Understand Which Persona Of Disruptive Tech Adoption Describes Them Best

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Monday’s Musings: The New Engagement Platform Drives The Shift From Transactions

Convergence In The Five Forces Of Consumerization Of Technology Drives The Next Big Thing

Social has given us the tools to connect.  Mobile has given us the ability to interact any time and anywhere.  Cloud delivers access points to us with a rich array of content and information.  Big data provides us with the context and information to make decisions.  Unified communications and video transform how we share ideas.  This convergence of the five forces of consumerization drives the next shifts in technology.  The move from transaction to engagement and from engagement to experience is happening now.  The era of transactional apps rapidly makes way for the era of engagement.

If Business Value And Outcomes Are The Goal, Then We Need An Engagement Platform For The Enterprise

The arrival of engagement platforms does not signify time to throw out the transactional systems. In fact, those systems provide the foundation required for engagement.  The engagement layer exposes transactions and allow for deeper interaction and richer sources of information.  However, the transactional systems lack the ability to support engagement.

In fact, organizations around the world struggle with building the right engagement strategy for their customers and employees.  While crafting the right strategy should be designed prior to any technology selection, once completed, the technology to support the strategy does not exist out of the box from ANY solution provider.  Unfortunately, the technologies to achieve engagement remain disparate and hodge podge.   Many solution providers seek to achieve the engagement layer from different heritages:

  • Pure play social solutions morph to engagement apps.  Vendors such as Broadvision, Jive, Moxie, Lithium, Tibco, and Yammer have delivered many elements of the engagement layer.  These horizontal offerings provide an opportunity to assimilate disparate offerings across multiple processes and roles.  The challenge is finding the tools that support consistent integration at the process, meta data, and data layer.  Gamification vendors such as Badgeville, Bunchball, BigDoor, Crowdtwist, and Gigya play a key role in delivering outcomes and influencing behavior through engagement.  Platforms such as Atlasian, Box, GoodData, and Tidemark open the door to a new era of engagement apps.
  • Legacy transactional systems in transition to engagement. Major ERP and CRM vendors seek to address engagement with “social” and “mobile” features.  While many of the vendors have the components for engagement, the struggle will be to embed a sense and respond design point into both the interaction layer and process flows.  Salesforce embraces the social enterprise and uses Chatter as its entry point in creating engagement.  SAP attempts this with its CubeTree/SuccessFactors acquisition in Project Robus.  Oracle attacks this problem through a customer experience suite.  Microsoft acquired Yammer to create this layer inside Office and its Business Solutions portfolio. IBM embraces social business with a series of acquisitions and product enhancements to its IBM Connections product.  More importantly, IBM has built and acquired a portfolio of software solutions that sit on top of the legacy transactional systems, delivering high value and high impact.
  • Consumer offerings could enter the enterprise. With consumerization of IT increasing, platforms such as Facebook, LinkedIn, Pinterest, and Twitter provide a rich engagement platform that could be adopted in the enterprise.  Meanwhile, solutions providers such as Adobe blend consumer with enterprise as they provide the tools for engagement on the web and in mobile.  The challenge is dealing with societal norms between work and personal information.  The challenge is meeting enterprise class requirements for safety, security, and sustainability.
  • Vertically integrated prosumer platforms already deliver engagement. Google, Amazon, Apple, and Microsoft have the unique capability of delivering an end to end solution from hardware, consumer device, operating system, database, applications, and partner ecosystem.  Engagement platforms form the basis of future business models as consumer and enterprise blend into prosumers.  The challenge is meeting the disparate needs of enterprise and consumer.
  • Marketing and advertising networks provide rich profiles and targeting.  The ad networks are moving fast to shift engagement and offers.  While daily deal sites play one role, companies like Glam Networks also now deliver key components for ad targeting and optimization that compete with Google, Apple, Yahoo, and other media properties.   Marketing automation platforms such as
    Eloqua, Hubspot, InfusionSoft, Marketo, NeoLane, Pardot, and Parature already have may key components.  The challenge is engendering trust among the users or consumers to share more information in exchange for deemed value.

Figure 1. Technologies Will Evolve  From Transactions to P2P

The Engagement Platform Requires Nine Main Technology Components

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Event Report: CRM Evolution 2012 #CRME12

CRM Continues To Evolve In A World Of Engagement


The CRM industry’s major non-vendor customer focused event kicked off at the Marriott Marquis in New York from August 13th to 15th.  Conversations with prospects and practitioners at the event highlighted a few emerging trends:

  • Shift from transaction to engagement. CRM traditionally focused mostly on the management, a bit on the customer, and very little on the relationship.  Major shifts in engagement strategy reflect a move towards two way conversations, unstructured information, and influence models.
  • B2B and B2C are dead. The notion of forced fit silos to represent a customer no longer applies. The world is rapidly move to people to people models and new systems must reflect this.
  • The rise of customer experiences. Prior to the coining of the CRM term, front office was the term which defined marketing, service, eCommerce, and sales force automation.  The move back to integrated customer experiences reflects a renewed interest in all the front office touch points and all the support in the back office required to support the customer experience.
  • SaaS/Cloud Best of Breed hell is a real issue. Rapid and random deployment of best of breed solutions versus mature suites results in some basic architectural deficiencies.  These deficiencies result in inefficiencies that impact the delivery of customer experience as  process, data, and meta data integration increase in complexity and cost.

The Bottom Line: Customers must focus on delivering a single source of truth in the fundamentals

Customers making the shift to next generation customer experiences realize that the basic laws of physics must not be violated.  Regardless of where key components reside, a single source of truth must be delivered to support next generation customer experiences.  This requires a strong blue print and engagement platform that delivers:

  1. Listening and intent
  2. Interaction history
  3. Master data management (customer master)
  4. Business process management
  5. Complex event processing
  6. Security and identity management
  7. Integration

Your POV.

Are you ready for the new shift to front office? What are you doing to deliver an integrated customer experience?  Add your comments to the blog or send us a comment at R (at) SoftwareInsider (dot) org or R (at) ConstellationRG (dot) com

Please let us know if you need help with your business strategy efforts.  Here’s how we can assist:

  • Assessing social business/digital marketing readiness
  • Developing your social business/digital marketing  strategy
  • Designing a data to decisions strategy
  • Create a new vision of the future of work
  • Deliver a new customer experience and engagement strategy
  • Crafting a new matrix commerce strategy

Related Research:

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Tuesday’s Tip: Apply Maslow’s Hierarchy Of Needs To C-Level Business Strategy

Maslow’s Hierarchy Of Needs Provides Prioritization Of An Individual’s Needs

In 1943, Abraham Maslow put forward his paper A Theory of Human Motivation. Eleven years later in 1954, Maslow went into detail on his hierarchy of needs in his book titled Motivation and Personality. The framework outlined five needs from the most fundamental or “deficiency needs” at the bottom and ended in Meta motivational needs towards the top (see Figure 1.).  At the highest level – self-actualization, the individual would focus on the needs to better society.

Figure 1. Maslow’s Hierarchy Of Needs

Source: Wikipedia

A Business Hierarchy Of Needs Provides A Model To Prioritize Business Strategy

While Maslow’s research explained what would drive and motivate individuals, applying the model to organizations yields a powerful framework for business prioritization. Why? Today’s next gen C-level executives face an onslaught of business priorities that must address the organization’s basic needs from regulatory compliance to higher level needs that include the management of the brand.  The business hierarchy of needs uses an analogous framework to Maslow’s.  Using the framework, business priorities and related projects can be aligned with the five levels that include (see Figure 2):

  1. Brand. The brand describes a promise to stakeholders. The brand is more than the collection of products or services offered by the company.  The brand encompasses an emotional value, an aspiration, and the public face of a business strategy.  The brand can be viewed as a person, product, organization, and symbol for the company.
  2. Strategic differentiation. Organizations seek strategic differentiation to achieve a desired reputation, create a defensible competitive advantage, and influence preferential behaviors in the value chain.  Tools include positioning strategy, design thinking, and innovation programs.
  3. Revenue growth. Revenue growth reflects the initiatives used to drive new customers, revenues, and market share for the organization.  Revenue growth is also known as top line priorities.
  4. Operational efficiency Operational efficiency priorities focus on reducing costs, improving existing performance, and optimizing existing landscapes.  Operational efficiency is also know as bottom line priorities.
  5. Regulatory compliance.  Regulatory compliance is a base need.  Organizations must comply with legal requirements.  In addition, organizations may want to avoid legal suits, causing injury, or failing to meet a commitment.

Figure 2. Constellation’s Business Hierarchy Of Needs

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Monday’s Musings: 10 Mega Business Trends To Watch For In 2012

The Shift From Transaction To Engagement Ushers A New Era For Businesses.

As organizations enter the evolution from transactional systems to engagement systems, a shift is happening in business (see Figure 1).  Engagement requires a different design point and business model for success.  Engagement must account for sense and response, massive social scale, conversation, new user experiences, real-time, multichannel networks, and other factors.

Next generation C-suite leaders not only build for engagement, but also design for the next era of experiential systems which apply context to deliver agility and flexibility.  These shifts have massive impacts on the societal, technological, economical, environmental, and political landscapes.  In fact, these shifts to experiential systems drive the 10 mega business trends to watch for in 2012 and beyond (see Figure 2).  Of note, they can also be aligned with Constellation’s Business Hierarchy Of Needs prioritization framework (see Figure 3).

Figure 1. Move from Transaction To Personal Fulfillment Systems

  1. Regulation gets worse and more expensive. Public outrage at a slew of government policy failures, the public sector debt crises, and a global sentiment against big business around the world will drive an increase in regulations.  Despite promises by politicians around the world for less regulation, a barrage of hidden taxes continue to be imposed by government bodies around the world.  In fact, Americans pay up to $1 trillion every year in stealth regulatory taxes.  Regardless of political point of view, global adoption of International Financial Reporting Standards (IFRS) and carbon trading proposals will also drive up costs.  Organizations must prepare for this continued regulatory assault as elected officials hope the passage of more regulations will result in their reelection.
    (Level 1: Regulatory Compliance – Business Hierarchy of Needs)
  2. Consumerization of IT must be enterprise class or businesses will fail. The recent Harvard Business Review post titled, “Coming to Terms with the Consumerization of IT” (CoIT), identifies six factors for the basis of balancing enterprise class requirements.  Businesses want IT to be simple, scalable, and sexy.  While the pendulum is definitively shifting towards business, Consumerization of IT requires enterprise class IT to ensure technologies to be safe, secure and sustainable. Success requires a natural equilibrium between business needs and IT requirements for key areas such as social, mobile, cloud, big data, and unified communications.  If IT is too strict, business fails. If business fails to have a level of discipline in technology adoption, IT can not keep up with the lack of standards and scale.
    (Level 2: Operational Efficiency – Business Hierarchy of Needs)
  3. Organizations who master data visualization gain the advantage of speed. New data visualization tools will improve internal and external communications.  The convergence of big data, unstructured social and mobile information, and machine to machine data will provide a treasure drove of data for business analytics.  However, the flood of data will result in poor signal to noise ratios.  Unfortunately, more data does not mean more information.  Consequently, data visualization will provide a key tool to efficiently communicate complex information to stakeholders such as employees, customers, partners and suppliers.  The systems change the future of work by allowing users to create, share, collaborate, and broadcast new visualizations models.  In this case, an image is worth an exabyte of data.
    (Level 2: Operational Efficiency – Business Hierarchy of Needs)
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