 Live from Las Vegas, it's theCUBE covering Oracle Modern Customer Experience 2017, brought to you by Oracle. Okay, welcome back everyone. We're here live at the Mandalay Bay for Oracle's Modern CX Show, Modern Customer Experience. This is theCUBE, I'm John Furrier. My co is Peter Burris, two days of wall-to-wall coverage day today. Our next guest is Katrina Gossick, Senior Director, Commerce Product Strategy. Cube alum was on an Oracle open world a few years ago and Alistair Galbraith, Senior Director of CX Customer Experience Innovation Lab with Oracle. Welcome to theCUBE, great to see you. Thanks, welcome. So, commerce is part of the story, it's just not marketing, there's transactions involved, there's R&D, there's a lot of technology. The show here is a common theme of just modernizing the customer experience, which is good because it's the outcomes. But commerce is one of them. Give us the update, what's hot for you guys this week? Yeah, I think what's different this year, from many other year in the past, is the pace of innovation is changing because I think there's so much disruption in the commerce space, and particularly in retail and also B2B commerce. There's lots of new expectations from customers. I know we've been saying that for years, right? But I think the technologies now that can enable some new experiences have rapidly changed. Now it's completely fathomable to leverage AI to drive more high-end personalization or to leverage internet of things to embed commerce more into everyday experiences. There's the innovation in retail, because retail is not a stranger to data. I mean, they've had data models going back, but certainly digital changes things. They're at the edge of the network, so it's a little bit of internet of things meets consumer data. The data is huge, if you can get the identity of the person, that seems to be the key conversation. How do you guys enable that to take advantage of the sea of data that you're providing from the data cloud, third-party, and first-party data? Well, I think there's a lot of fun approaches. Oracle has a technology called the Oracle ID Graph, which starts to merge a lot of identities across channels. So where customers are using data cloud, that can inform those micro interactions as they move between channels. And I think one of the trends we've been seeing this year that we're talking about as my channel is that customers no longer really complete one interaction or one transaction in one place. They might start on mobile, move to voice, move into a physical store, and we're trying to track that customer in all of those places. So a lot of our focus, and you see data cloud moves into AI, is enabling brands to move this data around more easily without needing to know everything about the customer themselves. Well, that's the key to the experience of the customer because they don't want to have to answer the same questions again if they're on a chatbot. And they've already been transactional, knowing what someone's doing at any given time is good contextual data. Well, it's funny you say that because when we talk to customers or end consumers, they're not thinking, I need more artificial intelligence. I need more data around my experience. I need internet of things. They're thinking, I want convenience. I want this to be fast and quick. I want you to know me as a brand. I don't want to have to re-enter everything if I'm talking to a customer service agent versus someone in the store versus interacting online. So data is a huge part of that. The challenge is how do you make it consistent? That's a great point. It's not the technology. It's about what they're trying to do. Yeah, exactly. Well, the experience comes back to, I mean, in many respects, convenience and I want you to sustain the state of where I am in my journey for me. Yes. Correct, yeah. Or at least not blow my state up. So it's interesting. The journey used to be a role or context thing and now we're adding physical location to it as well as device. So go back to this notion of new experiences. So it's, because it's got to be more than you can look at something on your phone and then transact in your phone. What are some of the new experiences on the horizon? Because that has a lot to do with where you guys think digital technology is going to go. I think some of those experiences are micro interaction. So that could be people are using voice shopping, but not for the entire purchase. Just a reorder this thing. What's the status of this thing? And brands are also using the data that they're gathering to tweak and adjust those interactions. So we're seeing data coming from real world devices and IoT, changing the expectation of the customer as they, maybe we showed some stories where people are reordering products using voice. And then when they shift between these channels, that micro piece of data is really changing that interaction. The other challenge we're seeing is the consistency of the interaction you said yourself. Not only is the complexity of what did I do, but if I do something here and I do something here, I should get the same experience both times. So we're talking mostly at this point about the B2C world, the consumer world. In many respects, some of the most interesting experiences we can envision in the B2B world, where a community of sellers is selling to a community of buyers. And the state that's really important is how does that buying community interact with each other as they discover things and share information. So how do you see this notion of new experiences starting to manifest itself in the B2B world? Yeah, it's interesting you say that because I often, you know, we work with both B2C and B2B clients and I actually think B2B has always been more focused on personalization because they do have so much information about their customers, contract data, you know, a lot of information about the buyer, the company. They've always done kind of online custom personalized catalogs. So I think there's a lot that B2C can learn from B2B around how to leverage that data to personalize experiences. And vice versa too, it's interesting. To that point, the B2C is a leading indicator on the experience side, but B2B's got the blocking and tackling down because they have the data. Because having the data, you get the goods. Okay, so here's the question for you. With the consumers going to digital, okay? You're seeing massive, we were reporting yesterday here on theCUBE and also on SiliconANGLE.com as well as ad age, not that we didn't predict this, but ad spend now on digital as surpassed TV for the first time, which is an indicator. But the ad tech world's changing because how people are engaging with the customer is changing. So the question is, what technology is going to help transition those ad dollars from banner ads to older formats to something more compelling in using data? Because you can imagine retail being less about click buy to sharing data. So the spend's going to only grow on advertising or reaching consumers. That conversion, that experience is going to have to move from direct response, clicking to more experience. What tech is out there? Well, I think the biggest challenge has always been tracking and personalizing for a unique interaction. Just the sheer volume of data that's coming in is just too hard to consume. So I think the blend of AI and AI with the ability to tweak, adjust, look at multivariate tests and change the interaction as it goes, that's going to really massively affect the journeys for retailers. And I think the big benefit as brands move to the cloud, the cost of innovation, the cost of trying something and failing is so much less. And the pace of innovation is so much faster. I think we're seeing people try new things with the data they've got, find out what works and what doesn't. Well, here's a question for you guys. We're talking to Des Cahill and this came up yesterday as well. Peter brought this up as part of the big data action going on with AI and whatnot. Batch to real-time is a shift. And this is clear here in the show that the batch is there, but still an older, but real-time data in motion, consumers in motion are out there. So the real-time is now the key. Can you comment on that? I think it goes back to what Alistair was saying earlier about those micro moments. I think transacting in new and unexpected places, ways, I think that's the key. And I think that's actually a huge challenge for our customers, because you have to be able to use that data in real-time, because that customer is standing there with their phone or in front of, you know, Alexa, you know, a speaker. It's an opportunity. It's a huge opportunity. And I think those opportunities are everywhere now. It could, in a couple years, be the refrigerator if you're reordering groceries, leveraging the screen. So I think that's going to be the challenge. But I think we've got time to help our customers figure out how to leverage that in real-time. I think staying nimble and agile is going to be key. And failing fast, or I guess a more positive way. You had rolling smart on yesterday. You wrote the book, literally wrote the book. But this is interesting. If you have the data, you can do these kinds of things. So the question is, you know, certainly your point about the refrigerator and all these different things, is going to create the omnichannel nightmare. It's not going to be, certainly, multi-multi-multi-omni. I mean, it's too many channels to deal with. I think we prefer to see it as the omnichannel dream than the nightmare, but the- So many channels, there's no more channels, right? Well, I think that's where things like Marketing Cloud, things like Integration Cloud help orchestrate that omnichannel journey so that to your point on marketing and ad spend, being able to analyze whether a benefit or promotion I showed during one micro-interaction affected something somewhere else, is so challenging, but so important when you're moving this ad spend around. And I think where orchestrating and journeying these micro-moments together is really where we're focusing a lot of our investment at the moment. One of the big things that's happening in the industry today is we're starting to develop techniques and approaches, methods for conceptualizing how a real thing is turned into a digital representation. IBM calls it not to mention them, or GE, perhaps more of a customer. I just did this notion of a digital twin. Commerce succeeds, or online and electronic commerce, succeeds as we are more successful at representing goods and services digitally. What's the relationship between IoT and some of these techniques for manifesting things digitally? And commerce, because commerce can expand its portfolio of things that it can cover as more of these things are digitally, can be successfully digitally represented. I think that's key, and it's actually one of the predictions we talked about in our keynote is how do you represent new ways of representing the physical store or physical space with customers? So for me, I think something that was pending back to the future, Judy Jetson, like a few years ago, augmented reality or virtual reality, I think now it's like we're going to see that more. We're starting to see it more with furniture sales, for example. You're on your iPad at home, and you can put the couch you've chosen in the space right there with you and see if it fits, but you're in your home. You don't have to go to the furniture store and kind of guess with your tape measure whether the couch fits or not, and I think that's applicable in B2B as well. As 3D CAD drawings, you can kind of see them in VR. Amazon just announced Look Yesterday, which is a selfie tool that allows you to see what you're wearing. I think we're going to see a lot more of it in the coming years. Well, in many respects, it also, going back to this, we asked a question earlier about B2B, B2C, and the ability to represent that community, we're going to start seeing more of a household approach as just a consumer approach. I think you just mentioned a great one. When we are successfully or when we are willing to start capturing more data about our physical house or what's going on inside so that we can make more informed decisions with others about how we want to do things has an enormous impact on the quality of the experience and where people are going to go to make their purchases. Definitely. And I think that as we try and merge those experiences between B2B and B2C, what we know about someone as a consumer also directly affects their buying decisions as a B2B employee buying for their brand. And that just increases the sheer volume of data that people are trying to manage and test and orchestrate. But I think we're seeing it a shift, not only in people being prepared to surrender some degree of privacy for a increased experience, but we're also seeing people trusting in that virtual experience being a reality when they buy. So people have a much higher trust level in AR if I visualize a couch and then buy it. I've got a degree of faith that when it turns up, we like the one I looked at. And I think that increased trust is really making virtual experiences, digital commerce so much easier. I think that's an interesting point. We had CMO of Time Warner on yesterday, Kristen O'Hara, and she was, we asked her, you know, oh yeah, digital transformation, big use case, she's on stage, but I asked her, how was it like the old way? What would you do before Oracle? She goes, well, there was no old way, they never did. The point is, she said, her point was, we became a direct-to-consumer company. So B2B and B2C are completely merging. So now the B2Bs have to be a B2C inherently because of the direct connect to the consumer. Not necessarily that they're business models changing, just that's the way the consumer is impacting. Or it's a data connection to the consumer. A data connection and whether it's gesture data or interaction data coming in. So this makes the B2Bs now have to bolt on more stuff like loyalty you mentioned, loyalty, things of that nature. Yeah, well, I mean, if you're a B2B company, you're selling to other businesses, but who are the people in the other businesses? There are people who shop every day in consumer applications. So their expectations are, I'm going to have a great personalized experience. I'm going to be able to leverage the same tools that I see in my consumer shopping experiences for my B2B experience. Why would it be different? So I think that's something that B2B is really learning from B2C as well. True, but it's all, I mean, although there seems to be something of a counterfeeling trend, but an increasing number of people are now working at home. Yeah, yeah. So it's, in many respects, what we're going to is we're talking about experience, not just being online. There's a, one of my little heroes when I was actually trying to do development a million years ago was Christopher Alexander. The timeless way of building, which is one of the basic texts that people use for a lot of this customer experience stuff. And the observation that he made was you talk about spaces. You talk about people moving into spaces to do things in context. And increasingly the spaces that we have to worry about are not just what's on the screen, but the physical space that people move in and operate in, and the idea is I'm going somewhere to do something and I'm bringing physical space with me. So all of these, the ability to represent space, time and interests and wants and needs can have an enormous impact on experience. I mean, wouldn't you agree? Massively, and I think the challenge using that same approach is that people are coexisting in multiple spaces concurrently. They no longer do one thing at the same time. They may be in the same physical place, but have two different contexts associated with it. Like working in my home office, I'm both a father as well as an employee. And those two sometimes conflict. Yeah, absolutely. And you're a consumer and an employee and as a father you're potentially affecting the decisions that the rest of your household is making as well as the decisions that your business is making all in slightly different ways. But those two experiences with the B2B and B2C overlap one another. In fact, switching contests from consumer to father is one of the primary reasons why I lose where I am in a journey. So these are very, very powerful and the ability to have the data and then to go to your customers and say, we will be able to provide that end to end for you so that you can provide a consistent and coherent experience for your customers is really crucial. Is that kind of where you're taking this? Yeah, I mean, we've always thought of commerce isn't kind of a standalone little thing. It really connects to and glues together so many other types of experiences. So it connects to marketing, it connects to service, it connects to social, you need all of that to be able to make the experience work. So we're really focused on making sure that it's easy to connect those applications together, that it's easy to manage them behind the scenes and that it appears seamless to the customer on the front end. One other thought that I have is, and in many respects, increasingly because we're going to be able to represent more things digitally, which means we'll be able to move more stuff through commerce platforms. This is where CX, CX rubber is going to meet the customer road, is in the commerce platforms. Do you guys agree with that? I mean, you're going to measure things all over the place, but I'm just curious. Is this really going to mean, what do you think? Is it going to be increasingly the basis for honest CX? Well, we're already seeing it become the basis. So I wouldn't say it's a future thing. I think it's been a reality for quite some time where commerce is the hub that kind of connects in retail, the store to marketing experience. It's bona fide data is what it is too. That's good data. It holds so much product information, transaction information, customer information, and it just connects and leverages. I don't know if you would agree. I agree completely. I mean, I think you look at the fact that most companies ultimately are selling a product. So that's commerce. And I think the transition is that rather than going into the commerce site or the commerce space, and you see a lot of brands over the last 12 months have got rid of their store.brand.com thing and just merge their commerce experience into everything else, you're always selling. And we've seen customers deploy commerce without the cart, but as a product communication and marketing model to get this tracking data moving around. So- We were talking with Jack earlier yesterday. Berkowitz was talking about data. We're talking about data, good data, dirty data, clean data and data quality in general. In context- It's a tough problem. In context to value. And he said a quote. He said, good data makes things happen. Great data makes amazing things happen. And to your point, retail commerce data can't, it's undisputed. It's a transaction. It's a capture in time. And that could be used in context to help other data sets become more robust. Well, in many respects, it's the most important first person data that you have in your business. Yeah. And I think from an Oracle perspective what we're doing with the adaptive intelligent applications for commerce and for the other applications as well. But in particular for commerce is combining that first hand information you have about your products and your customer as an online business. But then the immense amount of data that data cloud has behind the scenes and it augments and allows you to automatically personalize when a customer comes to your storefront. Because they're coming already with all the context that they have elsewhere out in the world. And you can combine that with your own data. And I think really enhance the experience. It's funny we were joking yesterday. Oracle went to bed a software company and woke up a data company. I mean, the data cloud is pretty impressive what's happened there and what that's doing. It's amazing. It's a huge differentiator for us. Huge differentiator. Okay, final where I like both of you guys to just quickly comment to end this segment. Awesome segment on commerce and data which we love. But your reaction to the show, what's the bottom line? What's exciting here this week? Share with the folks, each of you a quick sound bite of what's happening here in the impact that people should know about. Sure, from a commerce perspective this is the first year where we've got a 50-50 split in our customer base. So we're seeing a lot of our on-premise customers move to cloud which is great. And we're really growing our cloud, commerce cloud customer base. So I'm very excited about that. And you're trying to get to 100% now. It's never going to be 100%. We need to work with customers with what's right for them. But yeah, it's very exciting right now. Elsa, you're taking it. I think for me, it's just the sheer pace of innovation. We're seeing brands go from on-premise stories that would take 12, 15, 18 months to add new features, make changes to small nimble brands rolling out incredible innovative features in 12, 18 week time frames. And we're seeing more people having more discussions around the art of the possible. All right, Katrina, Elsa, great, great comment. Great insight, great conversation about data and commerce, of course cloud. It's a marketing cloud. It's all cloud world. It's commerce cloud. It's data cloud. It's just a cloud. I'm John Furrier, Peter Burris. More live coverage here from Las Vegas, Oracle, modern CX after the short break.