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Digital Experiences Using a Conversational Interface


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Creating unique digital experiences

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Digital Experiences Using a Conversational Interface

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  2. 2. Event Recording A recording of this presentation will be available within 3 to 4 business days. Submit Your Questions Please use the Questions module to submit your questions throughout the presentation. Technical Assistance Use the Questions module for technical assistance. If you are having difficulty with audio, use this call in number: Call in: (631) 992-3221 Access Code: 759-299-888 Event Recording A recording of this presentation will be available within 3 to 4 business days. Submit Your Questions Please use the Questions module to submit your questions throughout the presentation. Technical Assistance Use the Questions module for technical assistance. If you are having difficulty with audio, use this call in number: Call in: (631) 992-3221 Access Code: 759-299-888
  3. 3. 3 Bala Iyer is Dean of Faculty and professor of technology, operations, and information management at Babson College. Bruce Posner is a senior editor at MIT Sloan Management Review.
  4. 4. Digital Experiences using Conversational Interface Prof. Bala Iyer 3/28/18 @BalaIyer 4
  5. 5. Digital experience • Effect of using technology to create, manage, deliver and optimize stakeholder experience anytime, anywhere. It helps build a trusted relationship between a customer and a brand by being consistent across every touchpoint. • This requires paying attention to all the phases of a product life cycle and learning with each interaction. 5 Core Stakeholder Engagement Innovative Business Models Dynamic Ecosystems Automation & Learning
  6. 6. Mega trends • Smart connected products everywhere • Atomizing services and offering it in different contexts • Collecting data and offering it in different business models • Building a moat using customer data, digital experience and product-in-use data • Ambient user interface • Strategy  Owning the digital experience 6
  7. 7. Arrival of Digital Titans 7
  8. 8. Who are the Digital Titans? • Multi-billion dollar companies operating as platform-based business models • Have mastered the art and science of creating digital experiences • Mastered the data asset and taken it into different domains • Multi-purpose platforms with wide applicability
  9. 9. Digital Customer • A digital customer is one who consumes smart products, or products that have in-built sensors, information processing and connectivity capabilities. In doing so, the digital customer generates information upon product use, and enables third party access to that information [HBR, 2014]. • When effectively served, these digital customers add to novel informational assets with regard to how products are consumed or used. • Data can be used to make better products 9
  10. 10. Digital Replica • Digital representation of physical assets owned by a company along with its current state. The current state and environmental information is provided by sensors that are embedded on the physical assets. • Digital replicas allow companies to provide real- time monitoring, predictive maintenance and other outcome based services. 10
  11. 11. What constitutes the digital replica? • Digital model of the product • Enterprise Events data • Customer data • Product-in-use • Contextual data • Location • Time • physiological 11
  12. 12. Users are interacting with brands • “I don’t know anyone who likes calling a business. And no one wants to have to install a new app for every business or service that they interact with. We think you should be able to message a business, in the same way you would message a friend.” —  Mark Zuckerberg at F8 in 2016. 12
  13. 13. 13 Chatbot Interface AI and NLP Trusted data sources
  14. 14. What is a chatbot? • Chatbots are software and computer programs that mimic human conversation using artificial intelligence to perform tasks for humans. • They help answer questions from know data sources 14
  15. 15. New Stack 15 Command Driven (DOS, Unix) Apps Layer (AppStore, GooglePlay) Web Browser (IE, Netscape, Mozilla) Graphical User Interface (Windows, Xwindows) Conversational Layer (bots, machine learning & messaging) Understand machines Understand humans
  16. 16. 16 Channels Chatbot Interface General Knowledge Domain Knowledge Third-party services AI Engines Natural Language Processing Apps Third-party Data API Customer Data Contextual Data
  17. 17. Lessons • Stack has many layers • Firms can dominate within a layer • Layers closer to the customer are more highly valued • Firms in higher layers can act to commoditize lower layers • Getting closer to the customer means bringing more “humanity” to the exchange 17
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  19. 19. What is conversational commerce? • Conversational interfaces allow people to command devices and programs using natural language. • Conversational commerce involves users interacting with businesses through media and chat apps like Facebook Messenger, WeChat and Talk. It is a term coined by Chris Messina. • Uses AI to make interactions meaningful and productive. 19
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  21. 21. Types of bots • Customer Service • Personal assistants (find restaurants, find flights, relationships, meetings) • News • Help desk • Order processing • Product selection • Personal branding 21
  22. 22. Bot preferences from Humanity in the Machine study • 63% would consider an online channel to connect to a brand • 48% agree that it is creepy if the chatbot is pretending to be human • 61% agree that it would be frustrating if a chatbot couldn’t solve their problem • 75% agree that they would like to know if they are interacting with a chatbot or human • 79% would like to know that a human could step in if they asked to speak to someone 22
  23. 23. Concerns • Bots could only fulfill 30% of requests without a human stepping in • Of those who have used chatbots on a variety of platforms, 55% say accuracy in understanding the request is the biggest challenge. • Some 28% said they want chatbots to hold a more human-like natural conversation. • Users expect personalized, human-like assistance from bots • Works well for structured, simple situations like Tacobot and Domino DOM. 23
  24. 24. What to look for? • Clear purpose and narrow domain • Ease of development • What are the sources for data? • Cross messaging platform deployment • Humans for exception handling • Platform measures (monitor) • Users • Developers • Data • Community • Integrate with existing information systems and data • Humanize interface 24
  25. 25. Ecosystem of Bot Companies 25 Nodes: 429 Edges: 482
  26. 26. It begins with the smartphone • As more and more people adopt smartphones and tablets as their primary gateway to the online world, these lightweight, data-friendly chat apps have become portals to news, services and of course, commerce. 26 2.87 billion smartphones in 2020
  27. 27. Adoption • 2.5 billion people have signed up for at least one mobile messaging app and, according to a study by the advisory firm Activate, that number could reach 3.6 billion by 2018. That’s 90 percent of the internet-connected • Apps like Facebook Messenger, WeChat, Tango and Kik 27
  28. 28. Generation next • ...this rising generation of consumers value experiences that are quick, easy and suit an on-the- go lifestyle. By building commerce opportunities into the platform where people are already holding conversations, you eliminate a significant barrier between the consumer and the brand. 28
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  30. 30. Facebook and Uber 30
  31. 31. Alexa, order me a pizza! 31
  32. 32. Growthbot • Helps users access tons of marketing and sales data using an app they probably already have open all day — Slack • Data sources: Hubspot, Google Analytics, MailChimp and social networking sites 32
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  36. 36. Core idea • Good data + Algorithms (AI)  Sense making  Decisions • Machine learning, expert systems, user experience • Data sources: IoT, transaction data, public data, third-party data 36
  37. 37. Underlying engines • Artificial Narrow Intelligence • Artificial General Intelligence • Artificial Super Intelligence 37
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  39. 39. What should companies do? • Choose a business process to automate • Chose a development platform • Choose a metaphor for the digital experience • Build the Chatbot • Pilot bots with your customers • Keep the domain knowledge • Understand the learning algorithms • Run strategic experiments • Look for innovative users in other settings 39
  40. 40. Risks • Unintended consequences • Regulations • Security and privacy • Loss of ethics, policy and humanity 40
  41. 41. Era of Data Power of personalization and digital experience 41
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  44. 44. Liberating Value Internal Services Decision A P I Known Partner Services Decision Data StructuredData THIRD PARTY DATA ENTERPRISE EVENT DATA • D&B • Thomson Reuters • Nielsen • SAP & ERP • Salesforce & Eloqua • Engineering • Mfg./ * Production • Distribution • Legacy / Others CONSUMER GENERATED DATA • Weblogs • Omniture • Product-in-use • Social Media Contextual OPEN DATA EXPERIMENTS Open Services Decision
  45. 45. Major considerations • Data Privacy • Ethics of data use • Security • Bias in algorithms 45
  46. 46. Are Chatbots here to stay? • Yes • No • Maybe 46
  47. 47. Takeaway • Should be called niche bots • Set scope expectations • Scan logs for market insights • Own the digital experience • Collect the contextual data • Collect the in-use data • Look for data-driven business opportunities • Apply platform thinking • Be part of an ecosystem 47
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