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Where Will You Be When the Tech Crash Hits Minnesota?

February 7, 2016 By Graeme Thickins

Photo: ShineYourLight (Sang Kim)

Photo: ShineYourLight (Sang Kim)

Trends don’t start here in the cold North. We all know that. They tend to come from the coasts. Not always, but mostly. Some trends never even get here at all, and we can be fine with that — or not even realize we missed another one. Then there’s a trend that turns into a… crash.

There’s one of those taking shape out there in the world of big tech that we should hope never gets here. We’re hearing the talk more and more. New signs pop up. I caught a story yesterday that uses the stock market term “correction” in the headline — how polite — then proceeds to cite so many reasons it could be called a crash. Or a bubble burst.

…  [Read More…]

Filed Under: Startups & Developers, Trends Tagged With: funding

Uneeq Company Launches in Minneapolis

December 8, 2015 By Steve Borsch

A new company launched yesterday called Uneeq. Their focus is an online technology marketplace for gadgets. Lots of competition in this space, but we are rooting for them! Their press release is below:

Uneeq Company Launches
Online Technology Marketplace Opens for Business

uneeq3Minneapolis, MN – With a goal to help software developers and hardware and gadget manufacturers reach a broader audience and at the same time help consumers find the best and most “uneeq” products on the planet, Uneeq Company opened its online doors today.

“Our company is exclusively focused on technology, and more to the point, unique technology products,” said Michael Wray, President & CEO of Uneeq.”For now, we’d rather have a small, selective offering of really cool products opposed to a gigantic catalog of ‘whatever’ like some of the behemoth daily deal sites have.”

Uneeq’s marketplace is launching with an inaugural software bundle for the Mac platform. Eight unique, diverse titles chosen by Uneeq and offered for one phenomenally low price of $29.95, almost a $200 savings.

“Not only does our launch include an incredible bundle, but we are also going to be adding special hardware and gadgets deals every week,“said Wray. “We love the technology aspect of our company but the long term relationships with customers and with vendors is really what makes Uneeq worthwhile.”

To celebrate the occasion, Uneeq has created an online drawing for an Apple Watch to be given away on New Years Eve. Anyone can sign up on the Uneeq website until December 26, 2015. Visit https://uneeqco.com/giveaways/ for a chance to win.

About Uneeq Company
Uneeq Company is a technology marketplace for software, hardware, and tech gadgets. Based in Minneapolis, MN, Uneeq Company specializes in finding and procuring outstanding tech products with an emphasis on total customer satisfaction.

Filed Under: News & Events

White House Announcement: Prime Digital Academy Scholarships

November 17, 2015 By Steve Borsch

whitehouse-primeWhite House Announces Prime Digital
Academy Scholarships for Students of Color

$500 scholarships part of national TechHire initiative

Minneapolis, November 17, 2015 – The White House and U.S, Department of Labor today announced several nationwide initiatives as part of its TechHire program, including a new $500 scholarship offered by Prime Digital Academy (Prime) for students of color.

Currently, 15% of Prime’s students identify as non-white – but the bootcamp for aspiring software engineers believes scholarship support will move the needle on diversity. “Scholarships for women offered by The Nerdery – Prime’s sister company – have contributed to 35% of our applicants being women and 38% of our students being female,” said Mark Hurlburt, President of Prime Digital Academy.

The White House reports that among America’s 5.5 million open jobs, over half a million are in information technology fields such as software development – and that the average salary in a job that requires IT skills is 50 percent higher than the average private-sector American job. The new scholarship for students of color is funded by Prime to support minorities looking to start careers in software development.

From White House fact sheet: “In Minneapolis, Minnesota the first class of graduates from the Minneapolis partner Prime Digital Academy are being hired. Additionally, they have launched a $500 scholarship for any student of color applying to participate in the program this year.”

You can find the full announcement on the White House website here.

Filed Under: News & Events

We Need Women Who Can Code

November 11, 2015 By Steve Borsch

woman-coder

The crew over at The Nerdery are hosting an interesting event this Friday, November 13th. It’s an open discussion on how we in the tech community can close the gender gap and get more women in the development game.

Here is what they sent us about the event:

Nerdery event: Why we all need more women who can code

the-nerderyLeaders from women-in-tech orgs will come to The Nerdery Friday, November 13 for an open discussion on closing the gender gap. Women are underrepresented in the tech industry, yet our world demands more and more makers of software – for these reasons and more it’s in everyone’s best interest to work together toward developing female developers.

At The Nerdery, one-third of our executive team are women, and our sister company Prime Digital Academy offers scholarships for female students applying to our school for software engineers. Our Director of Software Development and KC Branch Director are also both women. That’s all good. It’s not enough.

sarah-olson-nerderyLed by Nerdery Senior Software Engineer Sarah Olson, we’re bringing together these eight organizations dedicated to advocating for women seeking learning and leadership opportunities in today’s code-driven world of business technology:

Geekettes believe that the more women get involved with tech design, development and leadership, the more successful and diverse our companies and products will be in the future.

Girl Develop It provides affordable programs for adult women interested in learning web and software development in a judgment-free environment.

Girls in Tech is a social network for women in technology-based fields focused on connecting, educating and empowering.

PyLadies has a mission is to promote, educate and advance a diverse Python community through outreach, education, conferences, events and social gatherings.

R Ladies gathers and fosters a community focused on learning R for statistical computing.

Twin Cities Women in Tech Meetup Group is an open source for sharing knowledge, information, and creative ideas – focused on encouraging all women in the field of technology, novice to ninja.

Women Leading in Technology is a Minnesota High Tech Association program that works to promote, educate and empower women in technology – their goal is to “connect, educate and reach back.”

Women Who Code has a mission is to inspire women to excel in technology careers with the belief that the world of technology is better with women in it.

Leaders from each of these organizations will introduce the types of events they hold, and ways in which people (male & female) can become advocates for opportunity and diversity. Attracting candidates is one thing, but retaining female tech talent is its own challenge: Women are twice as likely to leave tech careers than men, and more than half of women leave before reaching a senior level.

This event is open to the public; guests are asked to register.

When and Where:
The Nerdery: 9555 James Ave S. Suite 245, Bloomington, MN 55431
4pm – networking
4:30 – 6pm – program, social

Filed Under: News & Events

Wait, Was That My iPhone That Just Flew Over Your Head?

November 4, 2015 By Graeme Thickins

It could have been if I had a “PhoneDrone Ethos” prototype — I could be buzzing you! But, sigh, I don’t have one … and none of us mere mortals will until they ship in September 2016. That’s as soon as the Kickstarter page promises. Nonetheless, as I write this, the product boasts some $238,000 pledged (well exceeding the $100,000 goal), and more than 900 backers — who apparently have no problem waiting for 11 months.

[Note: This post first appeared earlier today on GraemeThickinsOnTech. I’m posting it here because the “Gang,” minus me, discussed the product on our most recent podcast, and I thought Minnov8 readers would like to hear more about the product.]

xCraft, the designer and manufacturer, is a drone company that scored a record-breaking $1.5 million investment on Shark Tank recently.

Quite simply, the PhoneDrone allows your smartphone to fly and follow you around. How about this line on the Kickstarter page? “Grant your smartphone access to the third dimension.” Yes, it would seem we’ll all be holding back our smartphones from their full potential if we don’t get one of these things! A smartphone’s potential is a terrible thing to waste…

That’s why the makers of the PhoneDrone Ethos say it “gives your smartphone wings, allowing you to deploy your PhoneDrone-WaterLaunchiPhone or Android phone as an autonomous aerial camera.” Oh, the glories of innovation we can all partake in if we just pre-order on Kickstarter! … and then  wait patiently for that far-off promised ship date to arrive.

The company claims their product is revolutionary because they’ve “leveraged the sensor, processor, and wireless capability of the smartphone” to give you “a powerful, cloud-connected aerial vehicle for a fraction of the cost of a typical drone.” Cloud-connected… oh, snap.

Of course they say no drone experience is necessary (!), and that their companion app is simple and intuitive. So, never fear: your phone will be out of your pocket and airborne in no time!

PhoneDrone-PaddleboardingYou can’t argue with the value proposition: “Your smartphone already has a powerful processor and multiple sensors. Why pay for all those things over again when buying a drone?” Seems reasonable.

It will work with your Android or iPhone inside, with a companion app that will be available for either platform. For the iOS version, you’ll be able to access it via the Apple Watch, too (as an extension of your iPhone), as shown in the video. And here’s a key point: for control and video streaming, the PhoneDrone can easily tether to another mobile device. And it has built-in charger, so you can charge from any USB source, or swap batteries for extended flight times.

A really cool feature is a camera mirror, which allows you to get three camera views — shoot straight down, forward, or to the side (as shown). Soo Hollywood… GetTheRightAngle

Here are some other important points about the product, as stated on the Kickstarter page:

Does PhoneDrone require two devices?
 No. PhoneDrone Ethos can be operated by a single smartphone in Mission mode. You set your mission by drawing a flight path over a map, setting altitude, time, any events (like snapping a photo) and then hit start. PhoneDrone will takeoff, fly your flight plan, and return home automatically.

How does “Follow-Me” work?
 Follow-me uses two devices tethered through WiFi; a smartphone in the drone and another device as the “beacon”. PhoneDrone will automatically follow the GPS position of the “beacon” device at your selected altitude. We are also working on a partnership with another company to allow follow-me by image recognition through the smartphone’s camera. [My emphasis – cool!] Look for this capability in the future!

PhoneDrone-verticalWorried about your phone?  We get that.
We know some of you are a little worried about sending your precious smartphone up into the air. That’s why we’ve developed
several safety features that will protect your phone in the event of the unexpected:

• Redundant Electronic Design: Borrowing techniques from full-sized aircraft design, we’ve built in redundancy into hardware and software design. This allows backup systems to take over if primary systems fail – and brings your smartphone home safely.
• Protective Universal Mount: We know (stuff) happens. That’s why we cradled the phone in a protective neoprene sheath that provides vibration isolation as well as the ultimate shock protection. It can even hold waterproof smartphone cases for some piece of mind over water.
• Still not convinced? PhoneDrone Ethos is compatible with many low cost smartphones – some as low as $50. So pick up an extra smartphone and you’ll still be flying the lowest cost cloud-connected autonomous drone on the planet.

Some other questions I would have:

1) Will my AppleCare pay up if I lose my $950 6S Plus iPhone in a crash, or if it takes a dive while cruising over water shooting awesome video of me paddleboarding?

2) If I did buy a cheap Android phone to put in the PhoneDrone, wouldn’t the quality of the images suck? But, for only $235 for the PhoneDrone body (cheapest price now on Kickstarter), plus as little as $50 for a cheap phone to insert into it, that’s a darn good deal for a drone and camera combo. Tons of would-be filmmakers can afford that.

So, what are you waiting for — ready to become a smartphone pilot? Order up right here.

Follow the latest from xCraft on Facebook and Twitter.

Filed Under: Drones, Mobile Technology, News & Events

Secured2 at Cyber Security Summit

October 13, 2015 By Steve Borsch

secured2-logoSerial entrepreneur Daren Klum‘s company Secured2 will be participating in the Cyber Security Summit 2015 here in Minneapolis on October 20-21. This is a great opportunity for you to learn first-hand about Secured2’s solutions and also delve in to this growing cybersecurity category and hear from thought leaders in various areas. Looks to be a strong event.

Below is a press release on their participation in the summit.

Secured2 Brings its Thought Leadership and Unhackable,
Disaster-Proof Data Security Solution to Cyber Security Summit 2015

Minneapolis, MN  (October 13, 2015) – In joining Minnesota’s efforts to establish a multi-stakeholder consortium for improving the state of cyber security on a national and international level, Secured2 Corporation will participate in Cyber Security Summit 2015, which is taking place October 20-21 in Minneapolis.

daren-klum

Daren Klum

Secured2 CEO Daren Klum will join Minnesota’s C-level executives, technology leaders, public policy makers, and other industry pundits to discuss the pitfalls of traditional backup / recovery methods, and present Secured2’s “shrink > shred > secure” methodology which mitigates hacking.

Secured2 is a data security company whose patented process and technology reduces data by more than 90% while simultaneously converting it into a secure format. It then randomly shreds the data into multiple locations, such as multiple clouds, hybrid or local storage environments. Its security solution has been tested, vetted, and refined in lab and real world environments, and is currently in operational assessment by healthcare, financial services and contract manufacturing companies.

Secured2 recently partnered with LiquidCool Solutions, marrying its data security software with LiquidCool’s Rugged Terrain (RT) liquid-cooled, high performance, ruggedized computing system. The combination of the two technologies provides protection from any form of catastrophe whether environmental or well-entrenched hacker groups.

“Cyber security threats that become more plentiful and sophisticated is an ongoing trend, and encryption simply isn’t enough,” said Klum. “Secured2 offers a technology that has not been seen before. Our Shrink>Shred>Secure process, which shrinks data and defeats hackers is rigorously tested, vetted and 3rd party validated by FBI-trained teams.”

Continued Klum, “As Minnesota collaborates on framework and program-based security approaches for threat intelligence, we’re certain Secured2 will stand out as the disruptive technology of choice.”

About Secured2 Corporation
Secured2 Corporation is a data security software company based in Minneapolis, Minnesota. Secured2 is the pioneer of new data security technology utilizing a ‘shrink > shred > secure’ methodology combined with new compression technology that reduces the size of data by up to 90%. The core product “Data Shredder” shrinks, shreds, secures and converts data into a random format. It then encrypts each shred using NIST certified encryption and randomly distributes the encrypted shreds across any multi-location storage a customer chooses (multiple clouds, hybrid locations or local storage destinations). Secured2’s simple solution: imagine a thief gets into your business and opens your safe. What they will find with Secured2 is shredded information. Your data is safe. Period. Secured2 continues to redefine the data security landscape and is in the process of rolling out several new products based on our core methodologies of data conversion, data shredding, randomized delivery of shreds into diverse storage and instant data restoration after multi-factor authentication. With over 17 patents Secured2 will continue driving innovation for its customers that require 100% security of their most critical and important data assets.

Filed Under: Innovation, News & Events, Security Tagged With: entrepreneurship, MN Entrepreneurs

Raising Money You Don’t Need: Minnesota Startup Trend?

September 23, 2015 By Graeme Thickins

I Dont Want Your Money

[UPDATE 9/28/15: At the bottom of this post, I include some great comments I got from a leading VC over the weekend.]

This thing about profitable startups raising money they don’t need is getting deafening around here. A few years ago, Code42 shocked us by taking their first VC money (a huge $52M round), which confused people because they knew they were doing fine without it. Then LeadPages raises a surprise A round in late 2013 that it soon was openly bragging it hadn’t touched — didn’t need it. Then, just months later, it takes yet more — another $27M. It’s growing crazy fast, so we wonder… do they not need that either?  How about SportNgin, raising something close to $40M over four rounds going back to 2011? With the continuous growth they’re experiencing, why do they need all that cash and can they even spend it?

Now we learn about another rapidly growing Minnesota startup, Field Nation, which began as a young college grad’s idea more than a decade ago and now claims a $100M revenue run-rate, grabbing a huge (for this town, FieldNation-logo-horizanyway) Series A round of $30M. Reading the recent news in the StarTribune and the MSP Business Journal, you had to be impressed. Another homegrown startup raises a huge initial round. Wow, yes, we say to ourselves, beaming with pride, the Minnesota startup community really is rockin’! But what’s going on here with this latest winner in the local VC stakes?

The one thing that struck me was that both the recent media stories about Field Nation said it was the company’s first outside money, when I knew it wasn’t. The first institutional (VC) money, yes, but this company was hardly undiscovered by smart investors. And it was growing just fine without using what little outside money it had previously taken in.

Field Who?
Just who is this company, you might ask? It’s true we don’t hear a whole lot about them. Well, they’re “the leading marketplace platform for contingent and on-demand workforce management” — as stated in their funding news release.  (Which contains so many “Tweet This” links within it, I had to laugh. Kudos to their PR dude, Chuck Grothaus.)

FieldNation-GetWorkDoneField Nation has been quietly toiling away for several years now building revenues like… well, apparently like mad if the aforementioned $100M run-rate it is any indication. Such a projection — and it is a projection — might make it seem more reasonable to understand why Susquehanna Growth Equity would inject $30M for only a minority position. Another perspective on the investment comes from a longtime advisor to the company, Ryan Weber, who told me “The market Field Nation is in is extremely hot, with well over mid-double digit growth rates expected for years to come.”

There’s no arguing the company has some impressive numbers, as stated in its funding news release: “During the past year, Field Nation has connected more than 1,000 organizations with its network of over 65,000 registered contractors.” Describing its growth rate, the company uses glowing terms: “Prior to securing this investment capital, Field Nation has been a self-funded business, growing profitably at more than 65% annually since its launch in 2008.”

There’s that insinuation again that it really hasn’t needed any outside investment.

MynulKahn-FieldNation

Mynul Kahn, CEO, Field Nation

I wanted some further background on the history of the company. So, I first went to Ryan Weber, the well-known cofounder of NativeX (formerly W3i), and, later, to Mynul Kahn himself, Field Nation’s founder and CEO.

The Viewpoint of an Early Advisor
Ryan Weber met Mynul while they were both working on their BS in Computer Science at St. Cloud State University. “He graduated in 2003, one year ahead of me,” said Ryan. “At the time, I didn’t speak to him about my business; we were simply classmates. This was before he had the idea that started Field Nation. Mynul had been living in the Twin Cities for a while and we didn’t keep in contact after graduation. However, in October 2008 he reached out to me to catch up. Soon after, in December 2008, I joined as an advisor to the company. Mynul had a false start with this business in the past, but I felt he had a lot going for him and was the type of person that wasn’t going to give up on this incredible idea.”

RyanWeber-NativeX

Ryan Weber
Advisor to Field Nation

How did Ryan participate? “I definitely did not have anything to do with the refinement of the business model. Rather, I provided feedback to Mynul on various organizational and business topics that had impacted my brother Rob and I in the company we had founded, as well as other startups we associated with. Mynul was already generating revenue when I got involved. He was very lean in getting the company started. After tracking the company a bit longer, Mynul and I agreed that I should approach Young Sohn (a board member at what was then W3i) about his potential involvement. Young had more business connections in Field Nation’s target markets, and was an occasional angel investor, a seasoned operator, and an incredibly strong leader. [Note: Young Sohn is now President and CSO of Samsung Electronics.] Ryan introduced Young to Field Nation in August 2009. “He was immediately interested in getting involved, and we worked out terms for a $200,000 seed investment, from Young Sohn and 32 Degrees, the angel fund I run with my brother Rob.”

How did Mynul fund the early days of Field Nation? “The company very early funded its own existence,” said Ryan. “It reminded me a lot of our company’s formation. Field Nation and W3i (now NativeX) were both bootstrapped to profitability and only raised a seed round to strengthen our savings, but, more importantly, to attract advisors — smart money.”

So, how was this $200K seed investment used? “He never actually spent the money we invested,” said Ryan. “I think the money helped Mynul feel more comfortable that he could spend the profits Field Nation was generating without worrying about taking on debt or having a bad month. He was also able to leverage Young, Rob, and I for any special projects and business advice.”

FieldNation-mission-600wI asked Ryan, in regard to the platform Field Nation created, what made him think they could succeed in a market dominated by the likes of Odesk and eLance. “Mynul’s focus was very different than the others. I personally had been a customer of eLance and other services like those. I found they were useful for software type service work. But Field Nation was focused on helping companies with service needs that required on-site field work. It made total sense for a contractor marketplace of technicians.”

What does Ryan now see now as the company’s critical growth challenges? “Their market is not well penetrated by any player right now,” he said. “Field Nation has its work cut out for it to convert potentials into customers and help shape the market. The biggest challenge I see is multiple growth opportunities to consider, including expanding markets and expanding products. Choosing the right focus and building the right team that can execute it will be the most critical.”

Another Perspective, from an Acquired Company’s CEO
Longtime local tech-industry player Mac Lewis was CEO of Field Solutions before its acquisition by Field Nation earlier in 2015. I asked Mac about his take on the funding announcement.

MacLewis-FieldSolutions

Mac Lewis, CEO, Field Solutions (acquired by Field Nation)

“This $30M financing is a significant one, from a reputable firm, which I believe is an evergreen fund,” he said. “That might minimize pressure for a liquidity event in 5 to 7 years. It will provide resources to expand investment in sales and software.”

Mac is not an employee of the combined company, though does have an advisory relationship. “Field Solutions was a complementary addition for Field Nation. Although we were in the same business, we did not see them competitively very often. From Field Solutions they got a customer base that was, for the most part, non-overlapping. We had focused more on enterprise clients. They also got a full-service delivery capability — in addition to more automated, SaaS ‘self-service’ capabilities, which were offered by both Field Solutions and Field Nation. They kept about two-thirds of Field Solutions employees.”

The Founder’s Story
This morning, I was finally able to run down Mynul Kahn (whom I originally met in 2011) and get him to briefly describe the story of his company. “The idea first came to me right after I left college. I founded a site called ‘Technician Marketplace’ then sold it in 2006. Soon after, in 2008, I started Field Nation with a much broader vision than just technicians.”

So, how many years following your founding were you in the ‘pre-revenue’ stage? “The company had revenue in its first year,” he said. “Since we were not funded by VC, it was important to generate revenue as early as possible. We created a minimal product in 2008 that was effective and customers loved it.”

But you must have had some money to start — how did you fund the early days of Field Nation? “From my paycheck,” he said. Yes, he had a day job, working for several years at an analytics firm. So, Mynul proves you can build a startup on the side while working a full-time job — but of course you can’t expect to do that with VC funding. First you put your own skin into the game. Both sweat equity and hard cash in this case.

What role did Ryan and Rob Weber play after their angel investment with Young Sohn? “As my first angel investors, they were extremely helpful,” Mynul said. “They worked as my sounding board and help connect me with a lot of people who ended working for my company.”

When did you first envision your platform strategy to serve freelancers in general (not just field technicians), and what made you think you could compete and succeed in a market dominated by the big established players? “The early success in field services broadened our ambition.” I guess so, if his next statement is any indication: “What Amazon is for retail, Google is for search, we want to be known for work – the work platform.” Can you say Think Big?

Who were your early critical hires? And how many are still with you? “The founding team is still with the company. One person built the technology team, one person built sales, one person built customer service.”

Finally, I asked Mynul. what are your goals for the immediate future, through 2016? “Further development of the platform. We’re adding lot of capabilities so the platform can handle any type of work, any type of worker classification, and eventually anywhere in the world. We’re putting a lot of effort in building the sales and marketing team.”

But how much of that $30 million will be invested in all that, and how soon? He’s not saying. But, with Field Nation generating revenues and profits as they are, will they even need to tap it?

Which Raises the Questions…

  • If revenue growth and profit trump everything, why do you need VC? (Truism: customer money is better than VC money.)
  • Why do VCs deploy large sums of money that really just then…sits there?
  • If founders aren’t asking for all this big money, is it flowing because VCs are pushing it on them?
  • Does a startup take such funds as a war chest for acquisitions?
  • Or all of the above?

Discuss amongst yourselves.

———–

UPDATE: When I was planning this post, I reached out to Seth Levine of Foundry Group (no stranger to Minnesota) for his take on the concept for this post. It turned out he was traveling and didn’t get a chance to respond till a couple of days ago. Here’s what he had to say…

“The reality is that the old adage is at play here – raise money when you can, not when you need to. Ultimately, it’s a sign of strength to put capital on the balance sheet. The key is to spend according to your business metrics, not according to your balance sheet. That’s where some companies perhaps get in trouble. As a practical matter, there are lots of reasons companies raise these growth rounds: they may need the money for marketing; they may want to look at M&A to grow faster; they may want to derisk the business and make sure that if things slow down in the economy they have plenty of cash as a buffer, etc. All very good reasons to shore up the balance sheet.”

[Note: This post first appeared at Graeme Thickins On Tech.]

 

Filed Under: MN Entrepreneurs, News & Events, Tech Investors Tagged With: angels, Code42, funding

The State — or Lack of a State — of Marketing Analytics

September 13, 2015 By Graeme Thickins

©VentureBeat-MktgAnalytics

Image ©VentureBeat

(Note: this post first appeared on Graeme Thickins On Tech.)

How does one assess the landscape for an exploding technology category like marketing analytics? There’s so much confusion and hype around the topic. You’ve heard it all — too much data, we’re drowning in it, woe is us. And, along with that, too many vendors trying to sell us the latest cure. First we were shocked to hear the number of vendors was 1000, now we’re told it’s 2000! The argument that all these vendors create too many data silos is now a refrain we’re hearing more often. Hard to argue with that.

With such high numbers of players comes confusion, and complexity.

But it begs the question: how in the world do you unify all your marketing data to understand it and gain a competitive edge for your organization? Will a platform or single vendor solution emerge? Some of the big players like Oracle, Adobe, and Salesforce are certainly trying, opting in a big way for buy vs. build. (These three have led a frenzy of acquisitions in the marketing technology space.)

Yet significant roadblocks still exist to widespread adoption of marketing analytics in business today — and for companies to extract real value from it. The lack of data science skills we’ve all heard about by now till we’re blue in the face — it’s the “sexiest job title in the country,” blah blah blah. Big shortages, universities scrambling to launch graduate programs, etc, etc. But should  this technology really require a PhD in every marketing department and agency in the land? That simply doesn’t compute! Why can’t there be more solutions, more tools, that marketers and general business folks — regular Joes and Janes — can use? Why does it all have to be so complex? 

Well, I’m confident more answers will be forthcoming, or at least some enlightenment along the way. It’s still the early innings in this game. An attempt to dissect the landscape was recently undertaken by VentureBeat Insights. It’s a lengthy report, months in the making, which they were kind enough to let me get a look at. It’s entitled “The State of Marketing Analytics: Insights in the Age of the Customer.” Here’s a link to the summary. It provides a good overview of vendors and tools available today across all areas of marketing analytics use cases.

Pity the CMO

The report begins: “There’s more data available than ever, and that’s exactly why it’s so challenging to truly make sense of marketing data. While cloud-based data platforms have accelerated the availability and access of marketing data, it hasn’t made the marketer’s job any easier. It’s just the opposite. ‘Mo’ data, mo’ problems.’”

The VentureBeat report author goes on: “CMOs are more challenged than ever. If they’re going to spend more, they need to deliver more. The latest Duke CMO Survey clearly shows that marketing organizations feel more pressure than ever to prove their value. In fact, 65% of respondents report that pressure from their board or CEO is increasing. At the same time, 65 percent say they lack the ability to really measure marketing impact accurately. That means a huge opportunity is buried in the data, waiting to be uncovered.”

MktgAnalytics-ContributionAn opportunity, and also a warning: “Budgets are shifting to the CMO to take advantage of this opportunity — but those who can’t manage the data will simply be taken advantage of”… and that would be by the technology vendors. So, fair warning: they’re always happy to sell you another point solution to add to the pile you may already have. But, cruelly, that can just add to the the complexity — which is the problem.

Just Give Me the Data That Matters

Two of the insights from the VentureBeat report that I found interesting:

1) Today, there’s a “general lack of ability to prove which data matters” — which it attributes to a skills gap. And that lack of ability can be at least partially ascribed to a lack of “self serve” tools — those that are “marketer ready.” I take that to mean tools that a non-technical marketing person can use. Or at least that a data scientist, whom you must train in marketing, could easily use. (But first you must recruit and hire that person in an extremely competitive talent marketplace. More on that later.)

2) Measuring marketing ROI is not getting easier, as you might think. It’s actually getting more complex and challenging. Why? Because “the answers to these performance metrics are buried in marketing data from dozens, if not hundreds of data sources. And the first step is understanding what those data sources are all about.”

Sounds like a ton of work, huh? It is.

More on that last point, this from a post called “Marketing technology is eating the customer journey”):

“Today’s marketers own more customer data and touchpoints than ever before, and more than any other department. New digital channels and devices — including search, social media, and mobile — have empowered consumers and complicated the customer journey. On each of these, consumers create unprecedented amounts of data about themselves and their interests. And as a result, both the process and technology of modern marketing have expanded as a result of these changes in consumer behavior… Today, digital offers new channels for engagement and accurate measurements to learn from. What’s more, as marketing’s reach has grown, the traditional roles of sales and support have diminished because consumers increasingly inform and support themselves.”

And more — this from “Building a marketing tech stack that drives retention,” a post by martech vendor Sailthru:

“With more than 2,000 companies across the marketing technology landscape, it’s daunting to figure out exactly which products and services you really need… Unlike more mature technology sectors, marketing tech does not yet have a consistent, established ‘stack’ of components.”

The importance of measuring marketing performance in today’s enterprise is further emphasized by a finding in the VentureBeat “State of Marketing Analytics” report:

“Despite marketer confidence in their ability to use the data effectively being relatively low, marketers across all levels, including CMOs, view marketing analytics as being extremely important to the financial success of the firm, not just the marketing organization.”

There’s a lot riding on the shoulders of the CMO. And marketing performance or ROI — the by-product of marketing analytics technology — is a huge part of that weight.

In its survey, VentureBeat asked the marketing execs it surveyed (sample size: 1000+) what were their use cases for marketing analytics. Here are the top five:

  • Customer acquisition
  • Customer retention
  • Ad/campaign effectiveness
  • Customer lifetime value
  • Customer behavior/audience insights

Duke Isn’t Only Good at Basketball

Another key source for understanding the field of marketing technology today, as mentioned earlier, is the Duke CMO Survey. This semiannual survey surfaces trends in the budgets and priorities of chief marketing officers at top U.S. firms. The February DukeUniv-logo2015 study was conducted across a sample of 2,630 marketing execs. Here are two key questions they asked those execs about marketing analytics; there are some surprising answers to the second one:

1) What are the areas in which you are using marketing analytics to drive decision-making?

  • Customer acquisition 37.8%
  • Customer retention 30.2%
  • Social media 27.4%
  • Product line/assortment optimization 26.4%
  • Branding 26.0%
  • Pricing strategy 23.3%
  • Promotion strategy 21.9%
  • Marketing mix 19.8%
  • Multichannel marketing 14.6%

2) What factors prevent your company from using more marketing analytics?

  • Marketing analytics does not offer sufficient insight 21.9%
  • Marketing analytics does not arrive when needed 19.8%
  • Marketing analytics is overly complex 19.4%
  • Marketing analytics are not highly relevant to our decisions 19.1%

Those negative answers should certainly be a wake-up call for the industry.

Two key bright spots in the Duke report (especially for vendors), courtesy of the TrackMaven blog:

1) Marketing budgets are expected to rebound to the highest point in more than three years. Top marketing execs have lofty budgetary expectations. Over the next 12 months, CMOs expect marketing budgets to increase by 8.7%, the highest forecasted increase since August 2011.MktgAnalytics-Spending

2) CMOs expect their spending on marketing analytics to nearly double. Over the next three years, CMOs expect their spending on marketing analytics — defined by the Duke survey as “the creation and use of quantitative data about  customer behavior” — to increase by 83%, up from a 6.4% share of the overall marketing budget to 11.7%.

So there are some positives. But another big downer from the Duke CMO survey:

“Only 40% of CMOs report the ability to prove the impact of short-term marketing spend on their business, and even fewer (34%) can qualitatively prove that impact in the long term.”

The obvious conclusion, again: there is much work ahead.MktgSpending-Impact

Wait, What, There’s a Skills Gap? (Duh)

VentureBeat’s “State of Marketing Analytics” report says marketing organizations need to “cultivate hard data science skills to stay ahead of the curve.” It notes that Gartner predicted 4.4 million data science jobs will be available by this end of this year, but only one-third of them will be filled.

Here’s another view on the topic of the skills shortage (from “Marketers are about to make new friends — or not — with data scientists”):

“Data scientists will soon take a lot of jobs away from marketers. The reasons are simple:

1) There’s already more data produced and mined every day than anyone can make sense of. Business gets this and is moving to incorporate data analytics into every facet of the organization.

2) Virtually every marketing technology of note (and there are many) is either a data analytics solution or a solution almost wholly reliant on reams of data.

3) Marketers simply don’t have the required skills to leverage these techs, or the underlying data. Unfortunately, that seems to be true at every level of the marketing organization.

Net-net, the ecosystem is changing, and the winds do not favor marketers with no data science game.”

The writer cites three types of firms in which he believes traditional marketers will soon be displaced by a new breed of data scientists cum marketers: enterprises, agencies, and marketing technology vendors. Yep, that pretty much covers it all!

The implication isn’t that overall marketing employment will not be increasing (though it might) — but that its makeup will be reapportioned. Marketing will become more about science than art. (Not news to those of us marketers who’ve been following this shift for a while.) Lesson: sharpen up those analytics skills.

But all this talk about the need for more advanced-degree data geeks would be lessened if vendors could just develop tools that non-techies can use. It’s hard to argue that, in the software technology world, those that can make the complex simple always seem to win.

One category of marketing analytics software where this is already being seen was called out in the VentureBeat report: “Self-service analytics with a big focus on data visualization (like Tableau) has found its way into marketing organizations at many levels.” Other vendors are surely noticing that one (very successful) company is proving the point.

What’s a Marketer To Do, Now?

With all this change going on in marketing, and science gaining on art in job descriptions and resumes everywhere, you can’t sit still. But there is no simple, universal action plan. The VentureBeat reports says it well: “Marketing analytics is as complex as it is unique to the individual performing it. There is no one way of prioritizing the right kinds of metrics, for the right channels, for the right products, with the right people, under the right organizational model.” Here’s a summary of their recommendations:

  • Develop a completely custom digital marketing analytics roadmap that incorporates establishing a well-defined strategy for your analytics organization firmly aligned to business outcomes.
  • Then, establish your technology requirements.
  • Next, define all the messy organizational requirements for your analytics strategy.

And they rightfully end with this point: “Your metrics and KPIs will be completely unique to you, but consult with experienced marketing analytics agencies in your industry. They’ll help you figure out which metrics to track.“

Land of 10,000 Data Pros (well, almost)

It goes without saying that one big thing you need to do is keep learning. Soak in as much as you can. In that vein, I must Minnesota-MapGraphic-286x334mention an upcoming conference here in what myself and my data colleagues also like to call “The State” of analytics — Minnesota! (I’m co-organizing it with Lizzy Wilkins, a marketing-focused data scientist.)

It’s the 2nd Marketing Analytics conference from MinneAnalytics, so “MAMA2” for short, and it’s scheduled for January 22, 2016 in Minneapolis. It will be educational in nature, and we expect more than 600 attendees. MinneAnalytics is the largest local/regional organization in the country for data professionals, with more than 5600 members from the region (and growing), from startups to our many Fortune 500s, across a wide range of industries. It hosts free, sponsor-supported conferences. More details on MAMA2 will be forthcoming on the MinneAnalytics web site. (You may also follow the Twitter feed.)

One thing I can say about the conference: it will be keynoted by the leading voice in the country today on the topic of marketing technology. We have spots for up to 20 other experts to give presentations on a variety of marketing analytics technologies and case histories. Those speakers (and sponsors) are now converging. It’s sure to be an enlightening event.

Filed Under: Marketing Innovation, News & Events, Why MN?

A Story About Genomics & ‘Precision Medicine’

September 3, 2015 By Steve Borsch

genestoryWhat if you could get a free eBook* that would help you understand a lot more about a field that has already made a big impact on the human race, and is one that is accelerating toward a revolution in precision medicine? A woman uniquely suited to telling this story has already created the eBook prototype and needs your help in getting it to the point of launching.

You’ve heard about DNA, right? How about the term “genomics”? Of course you have since you’re living in 2015 and watch CSI, Sherlock and other shows where they use this field to catch murderers, rapists and those who shed their cells at crime scenes. It’s likely you’ve also read about almost-weekly major breakthroughs in medicine—especially those enabling precision medicine which target treatments at an individual’s unique genetic makeup—but probably thought like I have, “Sounds cool but I kinda, sorta don’t really get the whole genomics thing.”

If you help this woman get the story out, you will be able to “get it” with genomics in an entertaining way (plus I’m going to connect with an education technology leader in my local school district since it will be perfect for school kids).

lynnAn artist I’ve known for 25 years, Lynn Fellman, has done amazing work for the last decade on interpreting DNA in to various forms of media, including interactive multimedia back in the 1990s to print, textiles and more today.

She doesn’t toot her own horn enough (which I’m trying to get her to do more of) but she’s been on NPR Science Friday multiple times (and Ira Flatow is a huge, and supportive, fan); a Fulbright scholar within evolutionary genomic research at Ben-Gurion University; and has worked with genomic scientists at Baylor in Texas and at the University of Minnesota.

During a personal healthcare experience she became very frustrated at the lack of DNA knowledge out there and knew she was uniquely suited to do something about it…so she is.

In a few short months she’s built a prototype and just began this crowdfunding campaign to complete her illustrated, interactive eBook. It’s premise is a character looking for precision medicine for herself and for everyone. It is designed for a general audience and its focus is as a guide to understanding our genome.

She asked me for my opinion on her initial beta version of the eBook and I was so surprised and delighted that I encouraged her to move ahead and immediately. When she did I offered to help get the word out and that is why I’m writing this post.

Check it out and please support her so this eBook can get out in to the world. When you go to her crowdfunding page, scroll down and see the incredible gifts you can receive for the various funding levels.

Here is Lynn’s crowdfunding page for the eBook

Learn more about Lynn, her work, & Fellman Studio

*In order to fully deliver on the interactivity, she’s creating it in Apple’s iBook Author (which is the best possible way to deliver interactive eBooks, by the way) and the eBook will be available for free to anyone with a Macintosh computer, iPad, or iPhone.

Filed Under: Edutech, News & Events Tagged With: iOS

How to Make Interning a Great Experience

September 2, 2015 By Graeme Thickins

Employer-AreYouLooking?Need an Intern in 2015-2016? Well, MHTA has the program for you! It’s called SciTechsperience and it’s now accepting student and company applications for the 2015-2016 program year. SciTechsperience connects college students in science, technology, engineering, and math (STEM) disciplines to internships in small Minnesota companies.

The program is administered by the Minnesota High Tech Association (MHTA) through a grant from the SciTechsperience-logo-wKidsMinnesota Department of Employment and Economic Development (DEED).

Best thing of all for the college students who are accepted as interns through the program? They get a paid work experience at a STEM-based business (many participate statewide) — with the potential for full-time employment.

Businesses that hire interns via SciTechsperience receive a dollar-for-dollar matching grant to cover 50% of the wages they pay the intern. (Each grant is capped at $2,500.) To be eligible, businesses located in the seven-county metro area must have fewer than 150 employees, and Greater Minnesota businesses (that means out-state) must have fewer than 250 employees worldwide.

Students and businesses can view requirements and apply to take part in the program here.

MargaretAndersonKelliher“We know Minnesota will need more STEM workers if our state is going to continue to have a strong economy,” said Margaret Anderson Kelliher, president & CEO of MHTA. “The SciTechsperience Internship Program is a way to develop that workforce and keep them here in Minnesota. It’s been a great success and we’re excited for the new program year to begin.”

Last session, the Minnesota Legislature increased funding for SciTechsperience to $2 million over the 2016-2017 budget cycle. The funding will be used to double the number of matching grants, which can now be up to 450 over the next two years! Note: the grants are available on a first-come, first-hired basis.

“Minnesota is fortunate to have incredibly talented students and great companies looking for future talent,” said Becky Siekmeier, SciTechsperience Program Director. “SciTechsperience is bringing these two groups together, offering students valuable hands-on experience and businesses access to potential future employees. SciTechsperience is an absolute win-win for everyone involved.”

Here’s what a past intern has to say: “Before this internship, I really didn’t know what happened on a day-to-day basis in an engineering company,” said Isaiah Salinas, intern at Kit Masters in Perham. “In class. they teach you about the equations you may need and the concepts you’ll need to know. However, until you get out and see what happens in a company and in a position, you don’t really have a good ideas about how and when to use each equation or which concepts are applicable. Internships provide that leap in understanding, from knowing how to solve a coefficient of friction problem, to knowing how to gather information and actually solve it outside a textbook.”

And a past employer in the program adds this: “We think offering students opportunities to participate in small to medium sized biotech companies near the end of their undergraduate career is invaluable,” said Nancy Timm with Rebiotix in Roseville. “This is a fantastic program, and we will continue to participate as long as it is available.”

SciTechsperience was established in January 2012 to offer college students pursuing STEM degrees the opportunity to apply their classroom knowledge in solving real-world challenges. The program is designed to expand a pool of talent to support Minnesota companies commercializing new technology, products, and processes.

MHTA, through the SciTechsperience program, has placed 380 students in internships from since 2012. More than 900 students applied for internships in the last program year.

“SciTechsperience” is an internship program that connects college students studying science, technology, engineering and math (STEM) disciplines to paid internships in small to mid-sized Minnesota companies.

About the Minnesota High Tech Association

MHTA-logo+tagMHTA is an innovation and technology association united in fueling Minnesota’s prosperity and making Minnesota a top-five technology state. It helps bring together the people of Minnesota’s technology ecosystem and leads the charge in directing technology issues to Minnesota’s state capitol. MHTA is the only membership organization that represents Minnesota’s entire technology-based economy. MHTA members include organizations of every size − involved in virtually every aspect of technology creation, production, application, and education in Minnesota. Find out more online at MHTA.org. or follow MHTA on Twitter @MHTA.

Filed Under: News & Events

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