Royal Dutch Shell Spreads Data Science Success

Doug Henschen

Former Vice President and Principal Analyst
Constellation Research

Doug Henschen is former Vice President and Principal Analyst where he focused on data-driven decision making. Henschen’s Data-to-Decisions research examines how organizations employ data analysis to reimagine their business models and gain a deeper understanding of their customers. Henschen's research acknowledges the fact that innovative applications of data analysis requires a multi-disciplinary approach starting with information and orchestration technologies, continuing through business intelligence, data-visualization, and analytics, and moving into NoSQL and big-data analysis, third-party data enrichment, and decision-management technologies. Insight-driven business models are of interest to the entire C-suite, but most particularly chief executive officers, chief digital officers,…...

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Shell center of excellence grows data science talent, masters funding and innovation challenges.

Sometimes the value of a case study is in learning about what was achieved, while in other cases it’s all about how it was achieved. I think my latest case study, about the Data Science Center of Excellence (COE) at Royal Dutch Shell (Shell), works on both levels, but the most interesting nuances relate to how Shell’s COE is organized and funded.

If you’ve attended recent Alteryx Inspire or Microsoft Ignite events, you might have heard a bit about Shell’s achievements. I first learned of Shell’s efforts to spread data science capabilities at Alteryx Inspire 2018 in Anaheim, where Deval Pandya, a Shell data scientist, gave an great talk on how the COE is helping to spread the power of advanced analytic methods without hiring armies of hard-to-find data scientists. COE execs work with line-of-business and supporting tech teams for a few days at a time, helping to spearhead innovation projects. They then coach these teams and help to harden the technologies so that can be sustained in production. Pandya cited successes including an inventory optimization project – detailed at great length in my case study – that has since been leveraged globally and is saving Shell millions of dollars annually.

I encountered Shell again at Microsoft Ignite 2018, where keynote attendees heard a bit about Shell’s use of Azure cloud service and advanced capabilities including machine vision and Internet-of-Things-style sensor monitoring. Several of these projects, as well as the associated business benefits, are also detailed in my case study.

It’s always great to hear about innovative tech projects and to see and meet customer executives at vendor events, but for Constellation Research, that’s just the beginning of the conversation. Where vendors tend to highlight just how their products were used, Constellation aims to share holistic insight on every aspect of innovation, including all relevant technologies and how the project – or, in this case, the COE -- was organized.

I’ve written about plenty of centers of excellence, competency centers and innovation centers, but two things struck me as being atypical about the Shell Data Science COE. For one thing, Shell has separated the tasks of data science innovation, which is led by the COE, and that of handling ongoing operational execution of completed data science applications. The latter task is handled by Shell’s Business Service Center. The key point is that innovation is often disruptive, whereas those in the ongoing operational role naturally seek out continuity and proven best practices.

“If you want a group that’s going to stay ahead of the latest trends, you can’t ask them to also operate everything,” observes Daniel Jeavons, general manager of data science at Shell and the key figure quoted throughout my report. “Our role is up front trying to identify the technologies that need to be developed and built out to the point of maturity.”

The second way in which Shell’s COE stands out has helped it avoid budget hardships. Because it’s under Shell’s Technology Group, which is tasked with driving innovation and differentiation, the COE has what Jeavons describes as a healthy mix of research-and-development and project-based funding.

“We need to be a catalyst for change within the organization, but that’s hard if you’re constantly trying to justify your existence with project funding,” he explains. “The business is paying us to run projects that deliver value now or in the near term, but at the same time we have the opportunity to innovate” [because of the funding dedicated to R&D and innovation].

There’s much more to learn in the Shell case study, including insight on its analytics stack and how and why it makes use of two major public clouds. There’s also insight on AI and IoT initiatives that are bearing fruit. But my key takeaway on Shell’s success is that it has found a way to balance stable execution that delivers value and, through the COE, breakthrough innovation that might be disruptive, but that is helping Shell to change its industry and the very foundations of its business.

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DisrupTV: Strong Leaders Elevate Inclusiveness and Empathy

Aubrey Coggins

Constellation Research

Aubrey (Levinstone) Coggins manages Constellation's marketing and communications programs and is the producer of DisrupTV, a weekly Web series on innovation and the enterprise.  She previously served as a senior manager of corporate communications at Egnyte and held account roles at Access Communications and The Hoffman Agency. Born and raised in Texas, she received a bachelor's degree in Public Relations from The University of Texas at Austin – Hook ‘em!   ...

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“Everyone wants to earn, learn and belong. These are universal human hungers.”

Great comment from Angela Blanchard, President Emerita at BakerRipley & Senior Fellow at Brown University, last week on DisrupTV. The show themed around inclusiveness, not just in business but through every aspect of our lives.

Angela works with displaced individuals brought or forced into new communities (due to natural disasters for example) and helps government entities and other organizations effectively integrate and serve them. She explained that people don’t want handouts; they just want to be part of the story.

As leaders in these types of situations or even in business, the biggest piece is empathy. Clear and simple. Be thoughtful and sensitive to what came before you and understand every new project we take on is also an end to someone else’s story, hard work or livelihood. It’s all about trust in leading through disruption.

She also explained the importance of improvisation and understanding the resources in your arena. What you did last time may not work, so be nimble and work with what you have at hand. This interview is a must-watch; I even got goosebumps!

Digital Inclusiveness

The theme of inclusiveness continued with Tim Springer, Founder & CEO at Level Access. His organization focuses on digital inclusiveness and making technology a profound force in the lives of individuals with disabilities. We have to ask ourselves, “how can WE change the world and outcomes of people’s lives?” Again, empathy and understanding are key to making our products, organizations and world better for everyone.

The term disability seems to mean “worse” or “not normal” in our society. We need to flip the script. It’s not about solving problems but enhancing the skills they bring to the table. While each individual may have a shortcoming, they also have advanced skills that should be empowered with the right tools in place. Leaders should embrace these unique qualities in their workforce and also work with companies like Level Access to ensure their products and offerings are accessible and optimized for everyone. It’s not just the law but also an essential piece for building a stronger, more inclusive world.

Tim also shared some great advice as an entrepreneur on building a business and the process and decisions behind VC funding.

Workplace Inclusiveness

“Leadership comes from all walks of life, not just the C Suite,” explained Dion Hinchcliffe, VP and Principal Analyst at Constellation Research. Sometimes it comes from outside with change agents or from team members fresh out of school. Be inclusive in your brainstorming, planning, and programs. The traditional hierarchy of companies is not the best way to succeed in today’s environment. With the impact of technology, digital transformation and shifting business models, our environments are changing faster than we realize, and sometimes it’s too late. 

With big change, there’s certainly a high failure rate. Break things down into manageable programs and projects and be ready to shift when the window opens. Get out there quickly with what’s working and cut what’s not. Dion shared some great case studies on effective leadership and programs that are thriving in this new exponential and constantly changing business ecosystem.

This is just a small glimpse at the great advice shared during the show. Please check out the full discussions in the video replay here or the podcast. Special thanks to our guest host this week, Alan Lepofsky, VP and Principal Analyst at Constellation Research.

Tune in every week for DisrupTV, hosted by Vala Afshar and R “Ray” Wang, on Fridays 11 AM PT/2 PM ET. Ensure inclusiveness is at the center to build a strong, rewarding environment for all of us.  

DisrupTV Episode 134, Featuring Angela Blanchard, Tim Springer, Dion Hinchcliffe from Constellation Research on Vimeo.

 

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DisrupTV at Davos – It’s all about the People; Three Trillion Reasons & Investment

Aubrey Coggins

Constellation Research

Aubrey (Levinstone) Coggins manages Constellation's marketing and communications programs and is the producer of DisrupTV, a weekly Web series on innovation and the enterprise.  She previously served as a senior manager of corporate communications at Egnyte and held account roles at Access Communications and The Hoffman Agency. Born and raised in Texas, she received a bachelor's degree in Public Relations from The University of Texas at Austin – Hook ‘em!   ...

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DisrupTV broadcasted live from the World Economic Forum’s annual meeting at Davos this morning to discuss some of the major themes and initiatives coming from the event. The show’s hosts R “Ray” Wang and Vala Afshar interviewed Tifenn Dano Kwan, CMO at SAP Ariba, and Ron Cao, Founder & Partner at Sky9 Capital about the conversations they’re having and what they hope to get from being in Davos this year.  

Beyond the trust, globalization and leadership topics the show covered yesterday (also echoed by today’s guests), Kwan shared her company’s “3 Trillion Reasons” campaign and movement, which aims to inspire and raise awareness around the world. Companies can make real social, global and human impact by pushing strong values of transparency, human rights and sustainability through the partnerships and practices they choose in thier supply chains. We are at a pivot point, and global leadership needs to take a stance to make positive changes for the future.

Conversations around the global economy, investments and China are also part of this year’s topics. Cao works with early stage startups and touched upon the investment scene in China. While we may get excited and distracted by the “hot” tech, such as blockchain, AI, 5G (all discussed during the interview), it still comes down to the people creating, governing, and buying these products. People are at the heart of impacting where we are headed for the future, which is why he focuses on investing in talent and working with smart entrepreneurs who have great ideas.

This is just the highlights! Check out the full, insightful interviews here and on the podcast.

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DisrupTV On the Road at Davos 2019 – Trust, Skills Gap & Culture

Aubrey Coggins

Constellation Research

Aubrey (Levinstone) Coggins manages Constellation's marketing and communications programs and is the producer of DisrupTV, a weekly Web series on innovation and the enterprise.  She previously served as a senior manager of corporate communications at Egnyte and held account roles at Access Communications and The Hoffman Agency. Born and raised in Texas, she received a bachelor's degree in Public Relations from The University of Texas at Austin – Hook ‘em!   ...

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DisrupTV is on the road this week at the World Economic Forum’s annual meeting at Davos. R “Ray” Wang and Vala Afshar interviewed a few guests live at the event to share some of the major themes coming out of this historic gathering of some of the most influential leaders around the globe.

 

Where is the trust? 

 

There’s this feeling of gloom around technology, especially as it relates to trust with our data, according to David Kirkpatrick, founder and editor-in-Chief at Techonomy. He explained that the attendance of the event has shifted with more technology leaders, and there are increased discussions around the impact of privacy, distrust of Facebook and the fear of losing our data completely with the developments of technology, such as IoT, Alexa, 5G, blockchain, etc.

 

One of the biggest themes of the show is trust.  It’s wrapped into all of the discussions from business and technology leaders alike. Citizens are looking to business leadership to help solve the issues of our time, including political, economic, ethical and societal topics. They are looking for other options as they don’t think governments are solving these issues effectively.

 

It’s time to reskill our workforce

 

With the advancements in technology, there’s a major skills gap that we need to address as we move into a new wave of multiplied innovation. Hosting challenges is a great way to inspire innovation and diversity of thought, explained Mike Morris, CEO at Topcoder. 

 

Another wave of change elevated at the event includes globalization and the realization that the world is flat where everyone should get paid fairly for their intellectual capital regardless of location. To disrupt in this exponential era, companies need to compete for the same talent as Apple and Google, for example. The next generation will not be sitting in cubes, and remote working from anywhere in the world will be the typical work environment. His company already is 100% remote and can recruit the top talent from anywhere. How companies and countries look at and produce talent will be a big theme at next year’s event, Morris explained.

 

Build a Strong Culture that Instills Trust

 

To close out the discussion, DisrupTV caught up with Gurvinder Singh Sahni, Chief Marketing Officer at Appirio, a Wipro Company. Echoing the sentiments earlier in the show, there is a deficit of trust in the tech sector. It’s important to work on a strong culture and understand that it correlates to how much your customers and community trusts you. Actions truly speak louder than words.

 

This is just the highlights! Check out the full interviews here and on our podcast. Tune in tomorrow for more interviews and takeaways from Davos.

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Event Report: Retailers Navigate Exponential Tech Amidst New Business Model Shifts #NRF2019

R "Ray" Wang

Principal Analyst and Founder
Constellation Research

R “Ray” Wang is the CEO of Silicon Valley-based Constellation Research Inc. He co-hosts DisrupTV, a weekly enterprise tech and leadership webcast that averages 50,000 views per episode and blogs at www.raywang.org. His ground-breaking best-selling book on digital transformation, Disrupting Digital Business, was published by Harvard Business Review Press in 2015. Ray's new book about Digital Giants and the future of business, titled, Everybody Wants to Rule The World was released in July 2021. Wang is well-quoted and frequently interviewed by media outlets such as the Wall Street Journal, Fox Business, CNBC, Yahoo Finance, Cheddar, and Bloomberg. Short Bio R “Ray” Wang (pronounced WAHNG) is the Founder, Chairman, and Principal Analyst of Silicon Valley-based Constellation Research Inc. He…...

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Retail Innovation Continues To Improve As Budgets And Margin Grow

Over 40,000 attendees gathered at Jacob Javitz convention center in New York City for the annual big show (see Figure 1.) The show kicked off with a keynote from BJ’s Wholesale Club Chairman, President, and CEO Chris Baldwin. Chris conveyed the impact of retail on the economy with $2.6 trillion in US GDP, one third of Americans starting their first job, and one in four jobs in the U.S. Despite the stereotypical grim outlook, Baldwin noted that retailers had 2,000 net new store openings in 2018.

Figure 1. Registration at Javitz Center

Top Trends Highlight A Business Model Shift

Top retail trends for 2019 include both technology and business model shifts (see Figure 2). New business models include:

• Mass personalization at scale
• Multi-channel return optimization
• Private labels
• Checkout free retail
• Pop-up stores
• Small format stores
• Stores as distribution centers
• Digital supply chains
• Micro warehousin

Figure 2. Retailers navigate exponential tech amidst new business model shifts #NRF2019

Key technology trends in order of importance:

• AI and machine learning pervasiveness
• Dynamic pricing and pricing optimization
• Order management and order orchestration
• Robotics and drone automation
• Blockchain adoption

Your POV.

Did you enjoy NRF 2019? Are you in the midst of a retail revolution? Add your comments to the blog or reach me via email: R (at) ConstellationR (dot) com or R (at) SoftwareInsider (dot) org.

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

• Developing your digital business strategy
• Connecting with other pioneers
• Sharing best practices
• Vendor selection
• Implementation partner selection
• Providing contract negotiations and software licensing support
• Demystifying software licensing

Reprints can be purchased through Constellation Research, Inc. To request official reprints in PDF format, please contact Sales.

 

Disclosures

Although we work closely with many mega software vendors, we want you to trust us. For the full disclosure policy,stay tuned for the full client list on the Constellation Research website. * Not responsible for any factual errors or omissions. However, happy to correct any errors upon email receipt.

Constellation Research recommends that readers consult a stock professional for their investment guidance. Investors should understand the potential conflicts of interest analysts might face. Constellation does not underwrite or own the securities of the companies the analysts cover. Analysts themselves sometimes own stocks in the companies they cover—either directly or indirectly, such as through employee stock-purchase pools in which they and their colleagues participate.

As a general matter, investors should not rely solely on an analyst's recommendation when deciding whether to buy, hold, or sell a stock. Instead, they should also do their own research—such as reading the prospectus for new companies or for public companies, the quarterly and annual reports filed with the SEC—to confirm whether a particular investment is appropriate for them in light of their individual financial circumstances.

Copyright © 2001 – 2019 R Wang and Insider Associates, LLC All rights reserved.

Contact the Sales team to purchase this report on a a la carte basis or join the Constellation Executive Network

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Work Coordination Vendor Smartsheet Acquires Slope

Alan Lepofsky

Vice President & Principal Analyst
Constellation Research

Alan Lepofsky - VP and Principal Analyst, Constellation Research. With almost two decades of experience in the collaboration software industry, Lepofsky helps organizations improve the way their employees work together to get their jobs done. Lepofsky’s primary research area The Future of Work, focuses on: integrating collaboration and business processes (Purposeful Collaboration), structuring work via Social Task Management, leveraging analytics and digital assistants to work more productively, the strategic impact of mobile computing on business transformation, and measuring workforce culture based on Digital Proficiency instead of age. Twitter: @alanlepoLinkedIn: https://ca.linkedin.com/in/alanlepo     , Title: Big IdeasIntelligent Collaboration: The Intersection of…...

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On Jan 15, 2019 Smartsheet acquired Slope

Future of Work

When Doing Good Is Your Business, You Still Need the Right Tools: Salesforce.org’s Acquisition of roundCorner

On Monday, January 14, 2019, Salesforce.org, the philanthropic arm of Salesforce, announced its acquisition of roundCorner, a software vendor focused on CRM for the nonprofit sector. Salesforce.org, formerly known as the Salesforce Foundation, is responsible for managing Salesforce’s 1-1-1 initiative. That entails donating 1% of profits, 1% of employee time, and 1% of technology to nonprofits.

In many ways, this acquisition is the logical next step in the long-standing relationship between roundCorner and Salesforce. A Salesforce platinum ISV partner, roundCorner has also received investment from Salesforce in the past. roundCorner’s products, particularly NGO Connect, have formed a core part of Salesforce.org’s offerings for in this space.

Constellation POV

We see two main take-aways from this acquisition:

1. This is likely to be a happy and more comfortable long-term home for roundCorner
2. The type of acquisition highlights the value and importance to customers of specialism

As a for-profit company, roundCorner was competing in a narrow but competitive market. Though bolstered by the partnership with Salesforce, it lacked the market presence of publicly-traded Blackbaud, for example. (For a view on the key players in the nonprofit CRM space, as well as the do’s and don’ts of nonprofit CRM, check out the excellent blog by the folks at Build Consulting.)

Coming officially under the umbrella of Salesforce.org ensures that roundCorner’s technology will continue to play a leading role in Salesforce’s nonprofit offerings. It also secures the long-term investment required to continue to innovate and build out these capabilities.

More importantly, this acquisition points squarely to the crucial role of specialist knowledge. Enterprise systems are only really effective when they are design to address the distinct needs of a given type of business, non-profit or otherwise. The tremendous power of Salesforce’s platform, applications, and ecosystem lies in a customer’s ability to configure those elements to meet their unique needs (while maintaining things like standard data structures and interoperability). The big drawback is that many customers who lack the capabilities and resources (read: most nonprofits) to do this on their own need something adapted to their needs out of the box.

Salesforce.org has been at this long enough to recognize that managing constituents and donors, administering grant processes, and organizing volunteers and events don’t have direct analogues in for-profit business operations. Bringing the specialist capabilities of roundCorner directly under the purview of Salesforce.org should accelerate the ongoing development of a Salesforce offering better tailored to the particular requirements of nonprofits.

Meanwhile, we’ll be watching to see if lessons learned about the value of specialist knowledge in the nonprofit sector influence other aspects of Salesforce’s core business as well.

Photo courtesy of Care International

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DisrupTV: The Pursuit of Workplace Happiness & Innovation in an Exponential, Techie World

Aubrey Coggins

Constellation Research

Aubrey (Levinstone) Coggins manages Constellation's marketing and communications programs and is the producer of DisrupTV, a weekly Web series on innovation and the enterprise.  She previously served as a senior manager of corporate communications at Egnyte and held account roles at Access Communications and The Hoffman Agency. Born and raised in Texas, she received a bachelor's degree in Public Relations from The University of Texas at Austin – Hook ‘em!   ...

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Musings - Why Open Source has won and will keep... winning

Holger Mueller

Vice President and Principal Analyst
Constellation Research

Holger Mueller is VP and Principal Analyst for Constellation Research for the fundamental enablers of the cloud, IaaS, PaaS and next generation Applications, with forays up the tech stack into BigData and Analytics, HR Tech, and sometimes SaaS. Holger provides strategy and counsel to key clients, including Chief Information Officers, Chief Technology Officers, Chief Product Officers, Chief HR Officers, investment analysts, venture capitalists, sell-side firms, and technology buyers.  Coverage Areas: Future of Work Tech Optimization & Innovation  Background: Before joining Constellation Research, Mueller was VP of Products for NorthgateArinso, a KKR company. There, he led the transformation of products to the cloud and laid the foundation for new Business Process as a…...

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By now we know that Open Source has won for platform software and possibly even more... Time to look how it all happened and what the trends going forward are going to be.

 

 

Why Open Source has won

Why Open Source Will keep Winning

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