IQ | Insigniam Quarterly - Spring 2025: "Hyper-Personalization: Your Future Demands It"
STABILITY
Volume 12 Issue 1 | Spring 2025 | insigniam.com/quarterly-magazine
CONTROL INSIDE WEBASTO AMERICAS’ FULL-THROTTLE TURNAROUND PAGE 16
GEN ALPHA IS READY TO DISRUPT IF YOU CAN’T KEEP UP, THEY’LL LEAVE YOU BEHIND. PAGE 42
CLEVERLY CHIC L’ORÉAL’S AI-TOOLKIT FOR PERSONALIZED BEAUTY. PAGE 52
“ [Hyper-personalization] offers us an unprecedented opportunity to meet customers where they are and finally make healthcare simpler, more affordable, and more connected than ever before. I’m excited about delivering innovative solutions that truly impact consumers’ lives in a positive way.
—Rita Khan
Chief Consumer Officer, Optum
Over 30 years ago, Insigniam pioneered the field of organizational transformation. Today, executives in large, complex organizations use Insigniam’s consulting services to generate breakthroughs in their critical business results. Insigniam’s innovation consulting enables enterprises to identify and cross into new strategic frontiers to rapidly generate new income streams. Insigniam provides executives of the world’s largest companies with management consulting services and solutions that are unparalleled in their potency to quickly deliver on strategic imperatives and boost dramatic growth. Insigniam solutions include Enterprise Transformation, Strategy Innovation and Innovation Projects, Breakthrough Projects, Transformational Leadership and Managing Change. Offices are located in Philadelphia, Laguna Beach and Paris. For more information, please visit www.insigniam.com.
EDITOR-IN-CHIEF
Shideh Sedgh Bina sbina@insigniam.com
EXECUTIVE DIRECTOR
Jon Kleinman jkleinman@insigniam.com
CONTROLLER
Steve Niedzielski sniedzielski@insigniam.com
DIRECTOR OF MARKETING AND SALES OPERATIONS
Natalie Rahn nrahn@insigniam.com
DIRECTOR OF CONTENT
Jon Ball jball@insigniam.com
CONTRIBUTORS
Waseem Abbas, Cody Cerny, J.W. Dobbe, Chad Holder, Tracy D. Holloman, Jon Kleinman, Katerin LeFolcalvez, Josh LeGassick, Guillaume Pajeot, Camelia Palai, Mia Studenroth, Emma Windsor, June Zeringue
IQ|InsigniamQuarterly is a thought leadership publication committed to transforming the world of business by offering content relevant to the C-suite and their executive teams at large, complex global enterprises.
If you notice a through-line in this issue of IQ, it’s no coincidence. Hyperpersonalization is no longer just a buzzword—it’s a boardroom imperative. From marketing and customer experience to workforce design and strategic planning, AI-enabled personalization is reshaping the way companies operate, connect, and compete. But with all that promise comes a wave of questions: Which use cases really move the needle? How do we scale responsibly? And what happens when the algorithms miss the mark?
In this issue, we dig into the numbers—and the nuances. You’ll find interviews with executives on the front lines of AI integration, insights into the economic upside (and downside) of data-driven decisions, and candid takes on the cultural and ethical implications of going “all in” on personalization.
What excites me most? The opportunity for leaders to pair the precision of machine intelligence with the creativity, empathy, and vision only humans can bring. The future of business isn’t just smart—it’s up close and hyper-personal. And that means today’s leaders must be fluent in both technology and trust.
So dive in. The path forward isn’t just about embracing technology—it’s about reimagining leadership in a world where every experience, touchpoint, and decision can be tailored… but not at the expense of what makes us human. Let’s explore that promise together. IQ
Shideh Sedgh Bina Founding Partner, Insigniam & Partner,
Elixirr
THE HYPERPERSONALIZATION ISSUE
FEATURES
BLOOD, SWEAT & TEARS STABILITY CONTROL
How Webasto Americas CEO Brad Ring shifted the global automotive supplier’s turnaround into high-gear.
By Cody Cerny & JW Dobbe
MARKET INSIGHTS
GEN ALPHA IS READY TO DISRUPT
Good news: They’re inheriting $84 trillion and love to spend. Bad news: They don’t care about your agenda.
By Tracy D. Holloman
COVER STORY
REAL-TIME REVOLUTION
For Optum’s Rita Khan, AI-driven hyper-personalization isn’t just about market share—it’s survival.
By Jon Ball
SEMINAL FEATURE THE PRICE OF PERSONALIZATION
Has your company mastered the tools & tech needed to win the prize of personalization?
Q&A
L’ORÉAL: CLEVERLY CHIC
Global Beauty Tech Services Director Béatrice Dautzenberg on the radiance of radical personalization.
By Katerin LeFolcalvez
DEEP DIVE PROTOTYPING GENIUS
Want the ultimate competitive edge? Then it’s time to embed design thinking into your company’s DNA.
By Jon Kleinman
By June Zeringue
“As an industry, we have to make sure that we are meeting that need and providing patients and customers with experiences that are highly personalized since nothing is more personal than health.”
Rita Khan, Chief Consumer Officer, Optum
The first person to appear on our cover twice in our 12 year history!
DEPARTMENTS
04 TECH BYTE
Will your company win the next corporate arms race?
12 BROWSER HISTORY
Recommended reads for the C-suite.
14 BY THE NUMBERS
The size of the global AI market— and who’s investing in what.
MULTIMEDIA
PODCAST: RITA KHAN, OPTUM
Tap to listen to her Insigniam B.I.T.s interview.
AUDIBLES
Listen to a reading of our seminal feature, The Price of Personalization.
ON THE COVER
Rita Khan, CCO, Optum
Photography by Chad Holder
The Race is On As of 2024, the global hyperpersonalization market is valued at over $19B (USD) and is projected to grow 16% yearover-year.
ARTIFICIAL
ILLUMINATION
Across industries, enterprises are having an AI light bulb moment, sparking better thinking and bigger wins.
By Cody Cerny & JW Dobbe
Enterprises across financial services, healthcare, insurance, medtech, and biopharma are leveraging AI and data-driven tools and tech to hyper-personalize the customer experience. But, what actual tools are major organizations utilizing, and what business impact is AI delivering? Most importantly, for senior executives yet to experience their light bulb moment— why should they care?
Across industries, businesses are deploying AI-driven predictive modeling, advanced machine learning, and immersive technologies to curate experiences that feel almost psychic in nature. The result? Higher customer retention, stronger brand loyalty, and a distinct competitive edge.
From financial services and insurance to energy, healthcare and beyond, let’s examine how hyperpersonalized technologies and tactics are reshaping industries worldwide.
AI Advisors & Predictive Wealth Management in Financial Services
The financial services industry is undergoing a quiet revolution. At the heart of it? AI Advisors and Predictive Wealth Management tools that are redefining how firms compete, grow, and serve clients.
Vanguard is leading the charge, using AI to democratize wealth advice—scaling personalized financial planning to a broader market with minimal human touchpoints, according to Financial Time s. Meanwhile, Tiger Brokers has embedded DeepSeek’s large language model into its trading platform, providing clients with AI-powered financial analysis, says Reuters. And at Citi, the recent hire of AI veteran Dipendra Malhotra signals a clear commitment to datadriven wealth innovation, notes Business Insider
The payoff is already visible. A Wipro survey cited by Fintech Finance News found that 77% of wealth firms saw improved decision-making from AI tools, and 76% reported greater operational efficiency. AI isn’t just faster—it’s smarter, helping advisors deliver hyper-personalized strategies at scale.
For firms not yet on board, the urgency is growing. As WealthManagement.com notes, “AI levels the playing field by providing
scalable, low-cost advice that rivals even premium human advisory services.” This is especially critical as younger, tech-savvy investors demand digital-first, always-on experiences. Additionally, the toolbox is diverse. Robo-advisors automate portfolio management; predictive analytics forecast client needs and market shifts; AI chatbots handle complex queries in real time. Risk platforms preempt market turbulence with precision. According to Netguru and JumpApp, these tools aren’t experimental—they’re market-ready.
Bottom line? The age of AIdriven financial advice has arrived— and waiting on the sidelines may no longer be a sound strategy.
In Energy, AI is Powering the Next Competitive Edge
The energy industry is getting smarter—and fast. AI-driven smart grids and personalized consumption tools are no longer futuristic concepts. They’re already giving forwardthinking U.S. and global energy companies a real competitive edge.
Take Capalo AI. This Finlandbased startup has created AI-powered “virtual power plants” that predict renewable energy flows and optimize storage. According to Business Insider, they’ve just raised $4.1 million in seed funding to expand operations— proof that smart money is chasing smart power.
In the U.S., Verdigris Technologies uses AI to reduce energy waste in commercial buildings. Meanwhile, GridBeyond, based in Dublin, leverages AI to manage distributed energy resources and accelerate the path to net-zero. And Creos Luxembourg is implementing smart grid tech that dynamically manages decentralized electricity production, boosting grid reliability.
What’s the impact? AI tools are driving significant operational efficiencies by reducing outages, enabling predictive maintenance, and cutting transmission losses. Personalized tools, like the ‘Energy Saver’ app featured in The Times , are helping consumers save hundreds annually through customized energy advice.
For energy firms not yet adopting these technologies, the window is closing. AI enables highly accurate demand forecasting, improved integration of renewables, and substantial cost savings. Not only does this tech improve operations—it builds resilience in a volatile market.
Across the sector, AI isn’t just about efficiency—it’s about futureproofing. Energy executives who embrace smart grids and intelligent consumption tools today won’t just survive—they’ll lead.
AI Is Also Reshaping Competitive Strategies in Healthcare
Across the globe, leading providers are using AI-driven precision care tools to diagnose earlier, treat smarter, and operate more efficiently than ever before Northwell Health, New York’s largest healthcare provider, built iNav, an AI tool that flags patients at risk for pancreatic cancer. According to “Catching Cancer Early”, published in TIME , iNav slashed the time between diagnosis and treatment by 50%—a transformative leap in care delivery. On the global stage, Financial Times reports that M42 in Abu Dhabi has sequenced over 800,000 genomes under the Emirati Genome Programme, opening the door to mass-scale personalized medicine and new pharmaceutical partnerships.
These tools aren’t just improving lives—they’re boosting margins. A
2023 BMC Medical Education study found AI in clinical workflows cuts costs, increases diagnostic accuracy, and reduces human error. The Journal of Translational Medicine echoed this, showing providers using AI are delivering more precise treatments with fewer resources.
So why should executives act now? AI-enabled care is already replacing one-size-fits-all medicine with scalable, data-driven personalization. The risk isn’t adopting too early—it’s falling behind.
IBM Watson Health supports personalized care plans by analyzing provider notes and EHRs. Google’s DeepMind brings machine learning to radiology, flagging abnormalities in medical scans.
For healthcare leaders ready to move, Michigan Tech University recommends starting with focused pilots—like clinical decision support or imaging—and building out data and training infrastructure from there.
Regardless, AI-driven precision care may be a strategic imperative— and the smartest providers are already reaping the rewards.
AI in Biopharma is Forging a New Frontier
Artificial intelligence is no longer a future bet—it’s the new backbone of innovation in biopharma. Global
Across industries, businesses are deploying AIdriven predictive modeling, advanced machine learning, and immersive technologies to curate customer experiences that feel almost psychic in nature. The result? Higher customer retention, stronger brand loyalty, and a distinct competitive advantage.
giants are leveraging AI to accelerate drug discovery, drive personalized therapies, and unlock operational breakthroughs that give them a serious edge.
Pfizer is at the forefront. Through collaborations with AI firms like CytoReason and Tempus, the company used AI to fast-track COVID-19 drug development, including Paxlovid. According to Coherent Solutions, these tools helped Pfizer identify targets and optimize trial populations faster than ever before. Meanwhile, AstraZeneca announced a multi-billion investment in China, which includes a new AI and data science lab to fuel early-stage R&D, as reported by The Guardian
Why the rush? A recent study in Frontiers in Artificial Intelligence shows that AI can reduce drug discovery timelines by up to 80%, significantly lower R&D costs, and improve the accuracy of target identification— changing the economics of drug development entirely. The Journal of the American Medical Association adds that regulatory bodies are increasingly open to AI-informed drug development, easing integration barriers.
The tools are just as cuttingedge. For instance, DeepMind’s AlphaFold predicts protein structures at scale, revolutionizing disease target discovery. Model Medicines’ GALILEO platform analyzes 3D protein interactions to uncover novel drug candidates. Moreover, these tools aren’t just theoretical—they’re transforming pipelines. According to the Information Technology and Innovation Foundation’s Harnessing AI to Accelerate Innovation in the Biopharmaceutical Industry,
published in 2024, AI is rapidly redefining benchmarks in biopharma innovation—and companies that delay adoption may fall behind industry leaders.
For those ready to take the first step, begin by identifying where the biggest impact lies: high-friction processes, inefficiencies, or data-rich opportunities ripe for transformation. From there, partner with specialists who understand both the technology and your industry. When executed strategically, AI delivers outcomes that are tangible, repeatable, and tied to value creation.
Hyper-Personalization Is Sharpening Medtech to be Smarter, Faster
MedTech innovation is already here, and companies like Medtronic, Boston Scientific, and GEHealthcare have solidly embraced emerging tech.
For executives, the path forward is no longer speculative— it’s strategic. The first step is to pinpoint highfriction processes where AI can deliver immediate, measurable value—be it streamlining workflows, improving customer experiences, or accelerating R&D.
Speaking to Insigniam Quarterly in our Winter 2024 issue, Raj Thomas, President of Endoscopy at Medtronic says technologies like AI, cloud computing, robotics, and the rise of personalized care are driving transformations in MedTech, and “they’re not just promising—they’re disruptive in the best possible way.”
“Personalized care is where I see the most exciting potential,” says Mr. Thomas. “The ability to offer treatments and procedures tailored to each patient’s unique biology and lifestyle is revolutionizing medicine. We’re moving away from generalized care and into an era where every patient receives what’s right for them—better outcomes, faster recovery, and a more humancentered approach to healthcare. That’s what makes this so powerful; it’s not just about the technology, it’s about improving lives in a deeply
personal way. That’s the kind of future we’re working toward, and it’s why we’re so excited about the path ahead.”
Additionally, GlobeNewswire reports that Tempus AI, Inc. saw its year-over-year revenue growth accelerate to 35.8% in the fourth quarter of 2024, driven by demand for AI-enhanced diagnostics.
For firms still on the sidelines, the message is clear: Moody’s predicts that AI will help medical device companies expand their portfolios and revenue streams while gaining efficiencies and curbing costs in the next two years. At the same time, the FDA is evolving its regulatory stance to encourage responsible AI integration, creating a smoother path to market.
The tools driving this shift include advanced AI imaging platforms, wearable sensors with predictive analytics, and decision-support systems that analyze complex patient data. These technologies are already empowering clinicians and improving care in real-time.
AI-Driven Personalization Is Reshaping Global Insurance
Forget the old model of risk pools and generic products—AI-powered hyper-personalization is turning insurance into a precision business. Leading global insurers are using AI to tailor policies, streamline operations, and dramatically improve customer experiences. Allstate is embracing generative
AI to humanize its customer communications. According to The Wall Street Journal , the company now uses OpenAI’s GPT models to write clearer, more empathetic messages, reducing churn and increasing customer satisfaction. SandTech reports that Zurich Insurance is leveraging real-time customer intelligence and predictive analytics to detect fraud and personalize offers with surgical precision. Meanwhile, ExlService Holdings—a rising player in insurance tech—saw accelerated growth after shifting from BPO to AI-led services.
From financial services and insurance to healthcare and biopharma, the next five years will belong to companies that act now. AI and data-driven personalization isn’t just a technical upgrade—it’s a new operating model.
The payoff is measurable. AI is cutting processing times, lowering fraud rates, and boosting NPS scores. According to market research firm ARIQX, AI and emerging technologies can reduce processing times by up to 50% and improve risk assessment accuracy by 30%. Additionally, a study by MIT Technology Review found that companies utilizing AI in customer service experienced a 25% increase in customer satisfaction scores and a 30% reduction in service costs.
The Age of HyperPersonalization: Tech-Driven Growth and the Executive Imperative
From financial services and healthcare to insurance, MedTech, and biopharma, AI-powered hyperpersonalization is redefining how businesses create value. What began as experimental pilots is now scaling across entire industries— reshaping everything from product development to patient care to underwriting.
The technology’s growth trajectory is staggering.
MarketsandMarkets projects the global AI in healthcare market will soar from $14.92 billion in 2024 to $164.16 billion by 2030, fueled by demand for precision diagnostics, tailored therapies, and smart medical devices. In financial services, their forecasts project AI will generate more than $190.33 billion in additional revenue by 2030, with hyperpersonalized digital experiences at the forefront. The International Data Corporation—a global market intelligence firm—reports that AI could contribute up to $19.9 trillion to the global economy by 2030, underscoring its transformative potential across sectors.
For executives, the path forward is no longer speculative— it’s strategic. The first step is to pinpoint high-friction processes where AI can deliver immediate, measurable value— be it streamlining workflows, improving customer experiences, or accelerating R&D.
Equally important is investing in the data foundation. High-quality, integrated, and secure data is the fuel that drives AI’s predictive power. Finally, organizations must ensure their people are prepared— training teams to understand and trust AI tools, and embedding a culture of innovation that supports scalable adoption.
The next five years will belong to companies that move now. Hyperpersonalization isn’t a technical upgrade—it’s a new operating model. The winners will be those who embrace it early, scale it boldly, and leverage AI to deliver value in a meaningful way. IQ
POWER PROSE
New releases on hyperpersonalization, Gen Alpha, and AI’s future.
By Waseem Abbas
Personalized: Customer Strategy in the Age of AI
By Mark Abraham & David Edelman, HBR Press, Oct. 2024
Consumers want personalized experiences, but few companies are rising to the challenge. Those that succeed in personalization build trusted relationships with millions of customers and engage with them at every step throughout their journey. Through the power of AI, they can unleash the creativity to fine-tune every interaction, delighting customers in the process. With detailed examples across industries, Personalized will help executives learn how to put personalization at the center of their strategy, accelerate growth, and capture their share of the personalization prize.
Generation AI: Why Gen Alpha & The Age of AI Will Change Everything
By Matt Britton, Wiley, Coming May 2025
In Generation AI, futurist and consumer trend expert Matt Britton explores how artificial intelligence is reshaping society, from consumer behavior to education, work, relationships, and health. As the first generation born into an AI-enabled world, Generation Alpha will experience a paradigm shift in lifestyle and career paths. With impacts on consumer behavior, including personalized shopping and the role played by the creator economy in capturing mindshare, Generation AI also examines ethics and privacy in a comprehensive new take on this once-in-alifetime technology.
Superagency: What Could Possibly Go Right with Our AI Future
By Reid Hoffman & Greg Beato, Authors Equity, Jan. 2025
Superagency offers a roadmap for using AI inclusively and adaptively to improve our lives and create positive change. While acknowledging challenges like disinformation and potential job changes, the book focuses on AI’s immense potential to increase individual agency and create better outcomes for society as a whole. Superagency challenges conventional fears, inviting us to view the future through a lens of opportunity. It’s a call to embrace AI with excitement and actively shape a world where human ingenuity and AI combine to create something extraordinary.
“Superagency provides an essential lens on how AI can address some of the most pressing global challenges of our time and ensure that everyone in society can benefit from this technology. An important read.”
—Bill Gates
INSPIRED
THINKING
Given the high-value promise of AI-powered hyperpersonalization, it’s no surprise that CXOs are investing serious brainpower into how to deploy next-gen tools to drive conversions and unlock deeper customer insights. And in many cases, it’s paying off—boosting click-through rates, lifting sales, and delivering digital experiences that feel almost psychic. But not every engine is firing. Many companies are stuck in pilot mode, struggling to scale, while consumer trust in AI-driven data practices remains shaky. So who’s reaping the rewards—and what questions are keeping other leaders up at night? Let’s look at the numbers.
% of Amazon’s total sales are attributed to its AI-driven recommendation engine.1
TO
70%
of AI implementation challenges are attributed to people-and process-related issues, while only 10% involve AI algorithms.4
1
47% of executives identify data readiness as their organization’s biggest hurdle in adopting generative AI.5
STABILITY CONTROL
How trailblazing Webasto Americas CEO Brad Ring kickstarted the automotive supplier’s regional operations into high-gear, fueling a remarkable turnaround.
BY JOSH LEGASSICK
Paralyzed by supply chain woes, Webasto Americas suffered a highly publicized failure producing roofs for the new Ford Bronco. That is, until incoming CEO Brad Ring took the wheel and blazed a new way forward.
INSIGHT BLOOD, SWEAT & TEARS
For over 120 years, Webasto has been a powerhouse in the automotive industry, driving innovation in roof systems, climate control, and EV batteries. But by 2023, its Americas division was in freefall. Profits were tanking. Supply chains were collapsing. Quality issues were mounting. Leadership was out of step. The division wasn’t just struggling—it was on the brink. In a mobility industry evolving at breakneck speed, survival was far from guaranteed. Enter Brad Ring, a seasoned automotive executive with a reputation for executing high-stakes business turnarounds.
Appointed CEO of Webasto Americas in 2023, Mr. Ring faced a daunting task: rebuild trust, reinvigorate operations, and position the company for long-term success. Just one year later, his leadership has driven a remarkable turnaround, making Webasto Americas a case study in corporate reinvention.
The Crisis Facing Webasto Americas
When Mr. Ring took the helm, Webasto Americas was in trouble. The region’s profitability had been eroding for years. Leadership had grown accustomed to missing financial targets, and cost inefficiencies were rampant. Millions were being wasted on unnecessary expenditures, and the division was burdened by a culture where failing to meet objectives was quietly accepted as the norm. Their financial position was unstable, and without immediate intervention, the long-term sustainability of the division was in question.
Webasto Americas had become a textbook case of a company paralyzed by its own inefficiencies. Supply chain
Ring Leader
As CEO of Webasto Americas, Brad Ring’s leadership has been instrumental in catalyzing the company’s remarkable turnaround. His strategic vision and operational expertise have strengthened market positioning, fostering growth and resilience as the company celebrated 50 years in North America.
disruptions caused delays in delivering critical components, leading to a highly publicized failure in the production of Ford Bronco roofs. These disruptions stemmed from an overreliance on third-party vendors and a lack of internal controls, resulting in costly delays that damaged the company’s reputation. Quality control issues plagued manufacturing plants, with products failing to meet rigorous automotive standards.
Additionally, an overreliance on external consultants indicated a deficiency in internal expertise, further exacerbating operational inefficiencies. These challenges eroded confidence among stakeholders, from employees to key clients.
Perhaps the most damaging issue was cultural stagnation. A siloed, individualistic mindset had taken root within the organization, with different functions focused solely on their own objectives rather than the company’s overall success. Employees and management alike had lost sight of the bigger picture, instead prioritizing their individual departmental goals over collective success. The company had settled into a losing mentality, prioritizing effort over results, creating a work culture where inefficiencies were tolerated rather than addressed.
“We had become settled in on losing,” Mr. Ring says. “It was okay to not meet our objectives. The deliverables weren’t as important as making a good effort or working a lot.”
Leading a Full-Throttle Transformation
With a clear-eyed assessment of Webasto Americas’ problems, Mr. Ring set out to
“We stopped measuring work and had started measuring results. We had to stop celebrating effort while the whole ship was sinking.”
SWEAT & TEARS
Back on Track
After an assessment of Webasto Americas’ problems impacting production of the Ford Bronco modular roof units, Mr. Ring set out to turn things around. His strategy was built on four pillars: vision, operational excellence, cultural transformation, and innovation.
turn things around. His strategy was built on four pillars: vision, operational excellence, cultural transformation, and innovation.
Mr. Ring’s first move was to change the company’s mindset. He emphasized ownership and accountability at every level. Instead of simply inheriting a corporate-mandated budget, the leadership team was encouraged to challenge financial goals and offer realistic counterproposals.
This was a radical departure from the past, where budget targets were handed down with little room for debate.
“The region had been given budget targets with no respect for whether they were achievable,” Mr. Ring said. “The attitude was, ‘Of course we’re not going to meet that. We never thought we could.’ We had to change that conversation.”
To do this, he established a more transparent and collaborative budgeting
process, ensuring that targets were both ambitious and achievable. He also required the leadership team to take ownership of the financial performance of their respective departments, reinforcing a culture of accountability and results-driven execution.
Mr. Ring and his team wasted no time cutting unnecessary costs and improving efficiencies. The first step was eliminating excessive freight costs by restructuring logistics. By analyzing transportation inefficiencies, the company was able to significantly reduce unnecessary expenditures, improving profit margins. The reliance on expensive external consultants was also cut down, with internal teams being empowered to take on problem-solving responsibilities. This not only saved money but also fostered a sense of ownership and competence within the workforce.
Warehouse operations were another major area of focus. Closing external warehouses and optimizing inventory management ensured that the Webasto supply chain became more responsive and cost-effective. Implementing lean manufacturing principles across the company’s plants helped streamline production, reducing waste and improving overall efficiency. The operational overhaul laid the foundation for a more disciplined and cost-conscious organization.
Mr. Ring understood that sustainable change required a shift in mindset. He focused on rebuilding trust, increasing collaboration, and fostering a culture of high performance. One of his key initiatives was reshaping executive leadership. Rather than prioritizing technical expertise alone, he sought leaders with energy, passion, and the ability to challenge conventional thinking.
“I look for people with the right energy, passion, and caring. Technical skills can be taught, but leadership qualities and mindset are much harder to change,” Mr. Ring explained.
Another major shift was changing how the company measured success. Instead of
tracking effort and individual achievements, teams were now evaluated on their contributions to Webasto Americas’ overall goals. Performance metrics were redefined to emphasize tangible results rather than subjective effort.
“We stopped measuring work and started measuring results. We had to stop celebrating effort while the whole ship was sinking.”
Beyond internal changes, Webasto Americas needed to reassert its competitive edge in the marketplace. Under Mr. Ring’s leadership, the company invested in automation and digitalization to improve production efficiency. New technology allowed for better tracking of manufacturing processes, ensuring quality control at every step.
Additionally, Webasto strengthened relationships with key OEM partners. By demonstrating its commitment to quality and efficiency, the company was able to rebuild trust and secure long-term contracts. Perhaps most significantly, Webasto positioned itself as a leader in EV battery systems, aligning itself with the future of mobility and ensuring its relevance in the evolving automotive landscape.
A Lesson in Leadership & Corporate Reinvention
Just one year after Mr. Ring took over, Webasto Americas has undergone a stunning transformation. Profitability has rebounded, with millions in cost savings reinvested into core business functions. Operational efficiency has improved significantly, with leaner and more responsive supply chain management ensuring smooth operations. Quality control has been restored, bringing stability to major production lines like the Ford Bronco program. These improvements have reinforced Webasto Americas’ reputation as a reliable and innovative automotive supplier.
The culture of complacency has been replaced with a culture of accountability and pride. Employees at all levels have embraced the turnaround, actively
BIO: Brad Ring CEO, Webasto Americas
Brad Ring is the Chief Executive Officer and President of Webasto Americas, a role he assumed on May 1, 2023. Prior to joining Webasto, Mr. Ring served as President of North America at Forvia Clean Mobility and was General Manager at Midwest Products Finishing. Since joining Webasto, he has led the company through its 50th anniversary in North America, focusing on innovation and growth in areas such as lightweight design, automated driving, and electromobility. Mr. Ring holds a Bachelor of Science in Mechanical Engineering from Kettering University and a Master of Business Administration from the University of Toledo.
SWEAT & TEARS
contributing to process improvement initiatives. Webasto Americas is now being considered for industry awards, a testament to its renewed reputation and commitment to excellence.
“We’re no longer just working hard— we’re winning,” he says. “We’ve moved from firefighting to building. That’s the real shift.”
A critical lesson from this transformation is that culture drives performance. Without a fundamental shift in company culture, operational changes alone will not create lasting success.
A company can implement the best processes and systems, but if employees are not aligned with the broader mission, those improvements will be short-lived.
Another key takeaway is the importance of accountability. Leaders must hold both themselves and their teams responsible for achieving real, measurable results. This means fostering an environment where commitments are taken seriously and setbacks are treated as opportunities for learning rather than excuses for failure.
“There are few decisive factors in the success or failure of a transformation,” says Insigniam partner Guillaume Pajeot, who is familiar with Mr. Ring’s impact at Webasto Americas. “One is how the leadership embodies the transformation. Mr. Ring has been exemplary for his teams, and he has been relentless with
Ring Leader
As CEO of Webasto Americas, Brad Ring’s leadership has been instrumental in catalyzing the company’s remarkable turnaround. His strategic vision and operational expertise have strengthened market positioning, fostering growth and resilience as the company celebrated 50 years in North America.
himself and his direct team to honor the promise to produce a breakthrough turnaround with the Bronco program performance. His commitment to keep encouraging the teams made the difference on several occasions, and they never gave up against the setbacks encountered along the journey. Observing this was pretty remarkable.”
Success also requires making tough decisions. Waiting too long to address critical issues can be fatal for an organization. Whether it’s restructuring teams, cutting unnecessary costs, or making difficult personnel changes, decisive action is necessary to achieve a meaningful turnaround.
Finally, innovation must be paired with efficiency. While developing new technologies and capabilities is essential for long-term growth, a company cannot afford to innovate at the expense of financial stability. Webasto Americas’ ability to balance its investment in innovation with strategic cost reductions was key to its resurgence.
“Caring about people doesn’t mean avoiding hard choices,” he says. “It means making the right ones.”
As Webasto Americas looks to the future, one thing is clear: under Brad Ring’s leadership, the company is no longer just surviving. It’s thriving. IQ
PHOTO COURTESY OF WEBASTO
Revolution
RealTime Rita Khan’s
How Optum’s Chief Consumer Officer is leading a smarter, more connected healthcare system.
BY
JON BALL
PHOTOGRAPHY BY CHAD HOLDER
Right now, imagine walking into a clinic where every facet of your visit is crafted to suit your individual needs. From the moment you check in, the staff anticipates your requirements; your medical history is seamlessly integrated into the consultation, and the treatment plan aligns perfectly with your lifestyle. This isn’t a dream—it’s the reality of hyperpersonalized health-care today.
Hyper-personalization is revolutionizing patient experiences by leveraging advanced technologies like artificial intelligence (AI) to tailor medical care to the individual. This approach transcends traditional one-sizefits-all methodologies, offering treatments and health recommendations based on a patient’s unique genetic makeup, behavior, and real-time health data.
Industries such as retail and entertainment have long harnessed personalization to enhance customer engagement and loyalty. The healthcare sector is now rapidly adopting similar strategies, recognizing that personalized care can lead to better patient outcomes and satisfaction. According to Forbes,
“When I think about hyper-personalization, consumers want curated experiences— and healthcare is no different.”
Rita Khan, Chief Consumer Officer, Optum
AI is “finally able to deliver highly individualized experiences at scale, providing personalization systems for individuals at scales never seen before,” marking a significant shift in how healthcare services are rendered.
Moreover, a study by NRC Health published in Becker’s Hospital Review indicates that while twice as many people consider being treated as a unique person is important in healthcare compared to other services, only 38% feel they actually receive such personalized care. This is in contrast to 75% of consumers who are actively seeking more personalized experiences—and 61% who say they would
“Our goal is to create a truly digital-first, consumer-first organization; one that meets the health needs of younger consumers and beyond.
—Rita Khan
visit their healthcare provider more often if communications felt personalized— suggests research from Redpoint Global published in Healthcare Purchasing News
Leading this transformation is Rita Khan, the Chief Consumer Officer at Optum. A subsidiary of UnitedHealth Group and established in 2011, Optum is an information and technology-enabled health services business dedicated to helping make the health system work better for everyone. With expertise in consumer engagement, digital transformation, and AI-driven innovation, Ms. Khan has a proven track record of leveraging technology to enhance consumer experiences in both healthcare and retail—two industries now converging in their approach to personalization.
At Optum, Ms. Khan ensures patients receive curated, predictive, and seamlessly integrated healthcare experiences. As AIdriven personalization reshapes various industries, her ability to bridge the gap between technology and human-centered care positions Optum as a trailblazer in the shift from reactive to proactive, hyperpersonalized medicine.
“When I think about personalization and the move towards hyper-personalization, it’s clear that consumers want curated experiences—and healthcare is no different,” says Ms. Khan. “As an industry, we have to make sure that we are meeting that need and providing patients and customers with experiences that are highly personalized since nothing is more personal than health.”
A Cross-Industry Perspective
To fully appreciate how Ms. Khan is
primed to “meet the moment”, one must look no further than her career trajectory, which showcases the transformative power of cross-industry experience.
Her leadership journey began in the corporate offices at Target Corporation and then Best Buy, where she led digital product management strategy, serving as director at BestBuy.com and leading the digital direct-to-business channel. This role reinforced her belief in seamless digital experiences and customer engagement—foundational elements she would later bring to healthcare.
In 2017, she transitioned to UnitedHealthcare as senior vice president, consumer digital, leading the digital transformation across Medicare, Medicaid, and commercial business units. There, she helped modernize the consumer experience, applying principles learned in retail to improve digital access and engagement.
In 2019, Ms. Khan was appointed chief digital officer at Mayo Clinic, where she established Mayo Clinic’s Center for Digital Health. During her tenure, she built a world-class digital, data, and AI enablement team, addressing the evolving needs of care delivery. When the COVID-19 pandemic hit, she rapidly scaled Mayo’s digital health infrastructure, increasing daily telehealth visits from 10 to 1,500 between February and May 2020, demonstrating the critical role of digital solutions in modern healthcare.
Now, as chief consumer officer at Optum, Ms. Khan aligns products, services, and digital capabilities to meet the needs of nearly 100 million patients and members.
“Standing before us all is an unprecedented opportunity to meet customers where they are and finally make healthcare simpler, more affordable, and more connected than ever before,” says Ms. Khan. “Given advancements in emerging technologies and the evolution toward hyperpersonalization, the healthcare industry is on the precipice of a very unique moment in time. I’m excited about delivering innovative solutions that truly impact consumers’ lives in a positive way.”
By applying retail-driven principles to healthcare, Khan advocates for curated, intuitive experiences that empower patients, making healthcare interactions as seamless as those in her past career-life. “Consumers want to engage with brands in ways that work for them, and the expectation is brands know them—it’s table stakes,” she says.
Yet, implementing consumer-centric digital transformation in healthcare presents significant challenges.
“Aligning stakeholders around consumer-centricity requires continuous evaluation of investments, incentives, and feedback loops to ensure they truly support consumer need.”
—Rita Khan
Personalization in Your Pocket Optum’s app is being built with the future in mind. Not only does it integrate AI and analytics to deliver personalized health insights today—including reminders for preventative screenings, medication adherence, prescription refills, and suggestions based on claims and clinical history—but it’s also a functionally evolving platform, with new hyper personalized features designed to elevate the consumer experience on the horizon.
Ms. Khan acknowledges that creating a truly connected healthcare experience within a vast enterprise like Optum requires extensive collaboration; a balancing act that succinctly highlights the complexity of modern healthcare transformation.
“It’s not easy—it takes a lot of cohesion both internally and externally,” she explains. “Aligning various stakeholders around consumer-centricity requires continuous evaluation of investments, incentives, and feedback loops to ensure they truly support consumer needs.”
Hyper-Personalization in Action
Optum is using AI-driven predictive intelligence to analyze vast amounts of patient data in real time. These algorithms identify patterns and help in the process forecasting potential health issues before they become critical, allowing for early intervention. For example, AI models can predict chronic disease exacerbations, enabling healthcare providers to implement preventive measures tailored to individual patients.
A prime example of this approach is the Optum app, designed as a personalized health management tool. The app helps patients with finding and scheduling care, accessing information and support, and connecting more efficiently with care teams.
“Our app leverages the best of what technology has to offer to make it intuitive and personal,” says Ms. Khan. “My goal is to build such a helpful app that patients see it as an indispensable member of their care team.”
Beyond digital tools, Optum’s transformation is centered around value-based care—a model accelerating
the transition from a fee-for-service to a value-based system of care delivery. Value-based care arrangements are designed to manage health care costs and improve the patient experience.
“If we think about value-based care, our approach is about providing high-quality, affordable care proactively to keep people healthy over their lifetime,” explains Ms. Khan. “Personalization in this model means empowering patients with information and options that lead to better care.”
However, the integration of AI in healthcare comes with challenges. Ensuring accuracy, privacy, and security of patient data is critical. To address these concerns, UnitedHealth Group has developed a Responsible Use of AI program, which establishes strict standards for accuracy, security, ethics, and transparency.
“We take accuracy and completeness of information very seriously as we implement new technologies because our patients and providers count on us,” says Ms. Khan.
“Through our responsible AI program, UnitedHealth Group has set standards to ensure AI tools are developed and implemented responsibly.”
“We believe AI should support—not replace— human decision making.”
—Rita Khan
But for Ms. Khan, AI-responsibility isn’t just a requisite for compliance. Instead, her views speak to a greater, more powerful commitment to consumers.
“We have an opportunity to address long-standing pain points for both patients and providers and create solutions that make the healthcare system work better for everyone,” says Ms. Khan. “That’s our mission, and that’s what drives me—and quite frankly, many of our colleagues— each day.”
A Hippocratic Approach to Data Security
Like all senior executives navigating hyperpersonalization, Ms. Khan must tackle the critical challenge of data protection, from ownership to security.
“Protecting our consumer data is critical to maintaining trust in the pursuit of
creating a more personalized experience,” says Ms. Khan. “When we leverage these insights, we can provide information, support, and solutions to guide patients in their care journeys—where, when, and how they wish to engage with us.”
The challenge lies in balancing personalization with privacy, requiring constant evaluation and refinement. Consumers expect on-demand, seamless healthcare experiences, but they also want assurance that their health data is secure and used responsibly.
In today’s fragile digital trust landscape, Ms. Khan stresses that transparency is not optional—it’s essential. Therefore, Optum is committed to ensuring that patients understand how and why decisions are made.
“We believe that current AI models should support—not replace—human decision-making,” she emphasizes. Furthermore, says Ms. Khan, Optum’s trust-building strategy is rooted in clear communication, ethical AI standards, and strict data protection policies.
“When we provide personalized support in ways that patients value, we build meaningful relationships—one consumer at a time—to help create the kind of health system we want to see for everyone,” says Ms. Khan.
Hyper-Personalization: What the Next Generation Demands
As Ms. Khan and Optum refine their consumer strategy, a new wave of healthcare consumers is emerging—and they differ significantly from previous generations. Generation Alpha—born between 2010 and 2024—is projected to make up 11% of the global population by 2030, according to statistics from the United Nations.
MEET RITA
Rita Khan serves as the Chief Consumer Officer at Optum, where she aligns products, services, and digital capabilities to meet the needs of nearly 100 million patients and members. Ms. Khan brings over 20 years of experience in digital transformation, consumer strategy, and innovation across healthcare, retail, and technology. Previously, as Chief Digital Officer at Mayo Clinic, Ms. Khan led the creation of the Center for Digital Health and developed an integrated digital strategy that connected data, analytics, clinical insights, and virtual care solutions to enhance patient outcomes. Her previous leadership roles at UnitedHealthcare, Best Buy, and Target shaped her consumer-first approach. Ms. Khan holds a bachelor’s degree from Tufts University and an MBA from the University of St. Thomas.
Learn more: www.linkedin.com/in/ ritagkhan/
This generation consists of digital natives who have never known a world without AI, smartphones, and on-demand services. They expect healthcare to function like their favorite brands—seamlessly, instantly, and with a clear purpose. Companies like Nike, Apple, and Patagonia have built fierce loyalty by standing for something bigger than their products. For Gen Alpha, personalization isn’t a luxury—it’s an expectation.
“Younger consumers prioritize purpose and mission when selecting their preferred brands, and we’re seeing that they have a more holistic view of health and healthcare,” says Ms. Khan.
“Being healthy for them is less about numbers and more about social, emotional, and physical connection. They expect the companies they engage with to share their values and actively work toward a better, more connected future.”
In healthcare, this means digitalfirst, intuitive experiences that not only streamline care but also demonstrate a commitment to accessibility, affordability, and equity. Gen Alpha doesn’t just want better apps and AI-driven tools—they want proof that companies genuinely care about their well-being.
They also expect real-time digital guidance in their daily health choices— whether it’s reminders to move more, nutrition recommendations, or alerts for potential health risks.
“Our goal is to create a truly digitalfirst, consumer-first organization—one that meets the health needs of younger consumers and beyond,” says Ms. Khan.
Case in point, the aforementioned Optum app proactively guides consumers toward better health by suggesting preventive screenings, flagging medication conflicts, and offering real-time coaching and support. Most importantly, Ms. Khan fully understands that this shift isn’t optional.
“The next generation won’t tolerate outdated, inefficient healthcare experiences. They expect seamless, predictive, and hyper-personalized engagement at every touchpoint—and we
can deliver for them anywhere, anytime to meet their health needs,” she says.
A Vision of the Future
As the coming years will most certainly redefine healthcare, Ms. Khan envisions a future where healthcare is predictive, proactive, and consumer-driven.
“When I think about what the world will look like in five to ten years, it’s about the patient actually being in control of their whole health,” says Ms. Khan. “They’re not letting the healthcare system happen to them—they’re truly engaged.”
However, the road to transformation won’t be easy. The healthcare industry has historically lagged behind in digital adoption, slowed by legacy systems, regulatory hurdles, and fragmented care models. Fortunately, leading Optum through this evolution is both a challenge and a passion for Ms. Khan.
“Even the most consumer-centric organizations have drift,” Khan acknowledges. “It takes constant reflection to ensure investments, incentives, and feedback loops are aligned to make healthcare simpler, more affordable, and more connected.”
To stay relevant, says Ms. Khan, leaders must embrace digital-first, AI-powered strategies that enhance—not complicate— the healthcare experience. They must also rethink incentives to reward quality care over volume. Essentially, the issue is either adapt or be left behind.
“The industry must come together to address fragmentation,” Ms. Khan advises. “Partnership is critical—whether internally aligning organizations around consumer needs or externally collaborating to create seamless, connected experiences.”
As hyper-personalization reshapes the industry, the most successful companies will be those that listen, innovate, and put the consumer first.
“We’re well on the path as an industry to get there,” says Ms. Khan. “And I, for one, am excited to see it happen.” IQ
PHOTO BY CHAD HOLDER
THE HYPERPERSONALIZATION ISSUE
THE PRICE OF PERSONALIZATION
BY JUNE ZERINGUE
THE HYPERPERSONALIZATION ISSUE
Once upon a time , companies clamored for customer attention.
Now, with AI-driven hyperpersonalization, they risk smothering it. The game has shifted from merely reaching customers to understanding them so profoundly that businesses can anticipate their next move before they make it. According to IBM, effective personalization programs can reduce customer acquisition costs by up to 50%. Additionally, a report by The Financial Brand indicates that nearly half of organizations using AI for personalization have observed measurable positive impacts on revenue, productivity, or margins.
At its core, hyper-personalization offers seamless commerce, intuitive service, and predictive engagement via machine learning models that forecast preferences before customers voice them; chatbots emulate human conversation so adeptly they can charm, persuade, and close deals in moments; dynamic algorithms present exactly what customers desire, sometimes before they even recognize the want. It’s not magic—it’s data, meticulously harvested, analyzed, and deployed at scale.
But there’s a murkier side to this new reality, where convenience can swiftly morph into intrusion. The same AI that streamlines interactions also raises unsettling questions: How is that information being used? When does personalization cross into manipulation? What was once a competitive edge can become an ethical quagmire, and consumers are becoming increasingly aware of the trade-offs.
The Double-Edged Sword of HyperPersonalization
For executives, the question isn’t whether to leverage AI, but how to wield it without eroding trust, alienating customers, or violating regulations. Hyper-personalization isn’t merely about enhanced marketing— it’s about redefining the entire businesscustomer relationship. And like any system designed to predict, influence, and monetize human behavior, it carries inherent risks.
At the time of writing, the regulatory landscape is shifting and many businesses are struggling to keep pace. With sweeping privacy laws such as GDPR in Europe, CCPA in California, and China’s PIPL setting new global standards, companies can no longer afford to treat compliance as a mere checkbox exercise. Case in point, in 2019, Google was fined €50 million by the French data protection authority for GDPR violations.
As the legal terrain evolves in realtime, what’s permissible today may be a violation tomorrow. A single misstep—be it unauthorized data collection, an AI model that inadvertently discriminates, or a cybersecurity lapse—can result in classaction lawsuits, billion-dollar fines, and a tarnished brand reputation.
Consumers are also growing increasingly skeptical. While studies indicate that customers value personalized experiences, those same studies reveal deep unease about how their data is collected, stored, and used. The backlash against overreach can be swift, severe, and inescapable. A survey by Omnisend involving 1,026 U.S. respondents revealed that while 38% appreciate personalized product recommendations, over half are concerned about data mishandling, and 28% distrust businesses’ data practices. Additionally, 39% have abandoned purchases due to frustrating interactions, such as inaccurate recommendations and poor chatbot experiences.
Beyond that, algorithmic bias poses another existential threat. AI models aren’t neutral; they learn from data that reflects the biases—both conscious and unconscious—of those who create and curate it.
THE HYPERPERSONALIZATION ISSUE
Round After Round
AI-driven personalization is not a one-time investment—it is an ongoing commitment to responsible innovation. The executives who treat it as a simple technological upgrade will find themselves outpaced and outmaneuvered.
This means AI can amplify prejudices in ways that are both damaging and difficult to detect.
The human factor adds another layer of complexity. AI-driven transformation demands more than new technology; it requires a fundamental shift in corporate culture. Resistance often originates at the highest levels of leadership. Executives who built their careers on intuition-based decision-making may struggle to trust AIdriven insights. Marketing and customer experience teams wrestle with integrating AI into legacy systems never designed for real-time adaptation. The result? AI operating in silos, detached from the larger strategic vision.
Data integrity presents yet another consideration and challenge. AI is only as effective as the data it ingests, and flawed, incomplete, or siloed data can render even the most sophisticated AI systems useless. Many enterprises lack the infrastructure to ensure data accuracy at scale. Without
a robust foundation of data governance, AI-powered personalization can quickly become a liability rather than an asset.
Lastly, cybersecurity threats add another dimension of risk. The more customer data a company collects, the more valuable—and vulnerable— that company becomes. AI-powered personalization is a prime target for cybercriminals. A single breach can expose millions of customer profiles, shattering trust and triggering regulatory penalties.
All told, the hidden costs of AI adoption warrant careful consideration. While he technology itself requires an investment, the real cost lies in the long-term upkeep required to refine AI models, integrate them into existing systems, and manage their evolution over time. Organizations that fail to account for these costs often fall into the trap of short-term adoption, long-term failure
Commitments AI Buyers Must Prioritize
Executives who treat AI-driven personalization as a one-time investment will find themselves outpaced and outmaneuvered. Companies that thrive in this AI-driven future will recognize that hyper-personalization must serve the customer—not just the bottom line. This requires moving beyond basic segmentation into true one-to-one engagement that delivers tangible value. Transparency in data collection is non-negotiable. If customers don’t trust a brand to handle their information responsibly, they will disengage. Forwardthinking enterprises are adopting consent-driven personalization strategies, offering customers control over their data, providing clear opt-in mechanisms, and demonstrating how AI-driven personalization benefits them directly. Companies that fail to make this shift will
find themselves locked in an AI arms race with no clear path forward. Moreover, AI governance isn’t an optional safeguard; enterprises deploying AI without robust ethical guidelines are gambling with their future. Bias audits, cross-functional oversight teams, and clear accountability structures are essential. Ethical AI isn’t just the right thing to do—it’s a competitive advantage. Brands that proactively demonstrate responsible AI usage will earn consumer trust, regulatory goodwill, and long-term market differentiation. To truly succeed, AI fluency must extend beyond IT teams. Every function—from marketing and sales to operations and compliance—must develop a working understanding of AI’s capabilities and limitations. Partnering with consulting firms specializing in responsible AI adoption can accelerate this learning curve and help organizations navigate the inevitable roadblocks.
THE HYPERPERSONALIZATION ISSUE
Don’t Go It Alone
AI-enabled hyper-personalization holds immense promise—but it also introduces a minefield of risks that few organizations are prepared to navigate alone. The truth is, no matter how capable an internal team may be, the scale and speed of transformation required often exceed what most companies can achieve in isolation. That’s why the most successful enterprises are increasingly choosing not to go it alone. They’re collaborating with strategic partners who bring a combination of deep technical expertise, cross-industry insight, and a track record of execution.
A capable partner can help mitigate— and in many cases, bypass—many of the negative outcomes associated with poor AI adoption. They can anticipate regulatory pitfalls, establish ethical guardrails, build strong data governance frameworks, and ensure AI systems deployed in a way that enhances, rather than erodes, customer trust. Perhaps most importantly, they can help instill the organizational fluency and cultural alignment necessary for AI to be more than a tool—for it to be a competitive advantage.
Hyper-personalization done well is a long game. It requires continuous refinement, responsive governance, and a clear-eyed understanding of both the promise and the peril. The companies that thrive in this new era will be those that recognize the value of outside perspective—those that seek out guidance not because they lack ambition, but because they’re committed to getting it right. IQ
They’re about to inherit $84T and are itching to spend. The bad news, says Maria Vallis, CEO of Hypothesis, they couldn’t care less about your executive agenda.
GEN ALPHA IS READY TO
DISRUPT
TRACY D. HOLLOMAN
As you read this, Baby Boomers and Gen X’ers are passing down an unprecedented $84 trillion— the largest intergenerational wealth transfer in history—to their children and grandkids, Gen Z and Gen Alpha (i.e., those born between 1997 and 2030). This isn’t just a financial shift—it’s a complete disruption of how businesses will need to operate in the coming years.
These next-gen consumers aren’t just wealthier—they’re rewriting the rules of the game. Case in point, Gen Z and Gen Alpha don’t think like previous generations, and they certainly don’t buy like them. Their expectations are sky-high, their patience is razor-thin, and their demands for digitalfirst, hyper-personalized, and ethically-driven experiences are non-negotiable.
While older generations learned to shop online, Gen Z and Gen Alpha grew up expecting instant, AI-curated recommendations, social influencers driving their purchase decisions, and seamless digital experiences. Uniquely, this generation is the first to be born into AI. They prioritize experiences over ownership, and if a company’s values don’t align with their own, they’ll abandon it without hesitation. Forget brand loyalty—this generation is loyalty-proof unless businesses continuously earn their trust.
For senior executives, understanding Gen Z and Gen Alpha is no longer optional—it’s mission-critical. The oldest members of this cohort are approaching 30, and they are already reshaping markets and industries. The question isn’t whether businesses can adapt—the question is whether they’ll survive if they don’t.
To better understand pending impacts from these rising generations, IQ sat down with Maria Vallis, CEO of Hypothesis; an Elixirr company and strategic insights powerhouse that deciphers consumer behavior through cutting-edge data analysis, qualitative research, and trend forecasting.
IQ: First, can you tell us how Gen Z and Gen Alpha’s expectations, attitudes, and preferences toward personalization are different from those of previous generations?
Ms. Vallis: Unlike Millennials or Gen X, who saw digital customization as a novelty or selling point, Gen Alpha truly demands hyper-personalization as a baseline experience. These younger consumers
“Unlike Millennials or Gen X, who saw digital customization as a novelty or selling point, Gen Alpha demands hyperpersonalization as a baseline.”
-Maria Vallis, CEO, Hypothesis
have been immersed in AI-driven personalization since birth. They expect predictive curation of content, anticipating their needs before they can articulate them. AI is seen as a co-creator rather than just a tool—take, for example, Spotify’s
AI DJ, which speaks to users, explains song selections, and adapts to mood and context. This expectation extends beyond products to experiences. Gen Alpha is not just interested in tailored recommendations; they want AI to anticipate their needs, adapt in real-time, and make their interactions seamless. For Millennials, personalization was about customization where they made choices from pre-set options. For Gen Z and A, static personalization isn’t enough – they are all about fluidity and adaptability that can evolve with their changing identities. They want intelligent systems with integrated AI that refines recommendations, adjusts their experiences, and even co-creates with them. This extends from entertainment to retail, social media, and even healthcare. Unlike previous generations, which saw AI as something to be learned or adjusted to, Gen Alpha views AI as a seamless part of their reality. They are willing to share personal data but demand transparency and control over how it is used.
For businesses, this means a significant shift is required in marketing, product development, and customer engagement. Companies that fail to integrate AIdriven personalization will find themselves outpaced by competitors that do. It’s not just
about offering options—it’s about offering an intuitive, predictive, and interactive experience that feels natural to the user.
IQ: Have you and Hypothesis uncovered any surprising insights about Gen Z and Gen Alpha that businesses may not be fully prepared for?
Ms. Vallis: One major shift is that the traditional life path—education, career, homeownership—is no longer a given. Gen Z started to redefine work-life balance and career flexibility, and Gen Alpha is taking it even further. They value fluid, customizable life paths.
For instance, traditional markers of adulthood, such as buying a home, getting a stable job, and starting a family, are no longer default goals. Instead, Gen Alpha and Gen Z prioritize experiences, self-expression, and flexible career paths that allow them to pursue multiple interests. Many are looking toward digital entrepreneurship, investing, and alternative career paths that give them independence and flexibility.
Another significant change is their financial sophistication. Many are already using investing apps, digital allowances, and financial planning tools before their teens. Unlike Millennials, who came of age during times of economic growth, Gen Z and Alpha came of age surrounded by news of economic instability, and are surrounded by tools that let them have a degree of control. Because they have grown up in a financially transparent era where economic discussions are more public, they are savvier about money than previous generations were at the same age. For businesses, this means that traditional marketing strategies won’t work.
Ignoring the demand for ethical business practices is a surefire way to alienate Gen Alpha and Gen Z, who can see through performative acts.
-Maria Vallis
Companies need to rethink consumer segmentation and messaging, recognizing that these young consumers are more financially literate and brand-savvy than previous generations. They aren’t just passive consumers; they are active participants in shaping markets and trends.
IQ: Which industries will be most disrupted by these younger generations’ demand for hyper-personalization?
Ms. Vallis: No industry is safe, but some are in the direct line of fire. Retail and e-commerce are already being transformed, as Gen Alpha expects shopping to be an immersive, AI-powered experience. They demand interactive shopping assistants, gamification, and real-time product customization. The days of static product catalogs and generic recommendations are over—shopping must be dynamic, evolving with their preferences at every touchpoint.
Financial services are also on the chopping block. Traditional banking is rapidly losing relevance as Gen Alpha gravitates toward AI-driven digital financial tools and cashless transactions. Their trust in banks is low, while their confidence in decentralized finance and peer-led financial platforms is surging. The old model of banking will not survive unless it adapts to this new digital reality.
Healthcare and wellness are undergoing a seismic shift as well. AI-powered mental health and wellness solutions tailored specifically for teens are gaining ground.
Not only do these young consumers expect healthcare services to be as personalized as their retail and entertainment experiences, but they are actively becoming their own healthcare advocates, using
“Gen Alpha & Gen Z’s expectations of AI, automation, and hyper-personalization are going to push industries to evolve faster than ever.”
-Maria Vallis
AI-driven diagnostics, telehealth, and ondemand walk-in clinics when they need to be seen. Legacy, one-size-fits-all healthcare models are becoming obsolete. On-demand, AI-assisted healthcare will become the standard, and any organization that fails to deliver hyper-personalized services will struggle to remain relevant.
IQ: How will the massive, $80+ trillion intergenerational wealth transfer reshape consumer behavior?
Ms. Vallis: Gen Alpha and Gen Z won’t just inherit wealth—they will redefine how it’s managed and spent. They prioritize digital assets, social responsibility, and financial independence.
Many are already learning about investing through social platforms like TikTok and Reddit, where they trust peerled financial guidance over traditional banking institutions. Additionally, they are more inclined to fund startups, social
enterprises, and projects that align with their values rather than following traditional wealth management strategies.
Brands that want to win their loyalty need to understand their values and provide financial tools and services that align with their digital-first, impact-driven mindset.
IQ: What common mistakes do businesses make when trying to win over younger consumers?
Ms. Vallis: One of the biggest misconceptions brands have is that brand loyalty still exists. It doesn’t. If companies aren’t continuously proving their value, Gen Alpha will move on without a second thought. This generation has endless choices, and they are quick to abandon brands that don’t keep up with their expectations. Another major mistake is relying on traditional advertising. Gen Alpha doesn’t engage with corporate messaging the way previous generations did.
and data-driven strategies— transforming human understanding into actionable business impact.
Ms. Vallis’ VantagePoint As CEO, Ms. Vallis leads Hypothesis’ strategic insights, design, and branding functions to help businesses solve complex challenges through custom research, creative storytelling,
They place far more trust in peer reviews, influencers, and AIgenerated recommendations than in traditional marketing campaigns. If a brand isn’t embedding themselves into digital ecosystems like Reddit, TikTok, and/or Discord, they risk missing the mark entirely.
Finally, ignoring the demand for ethical business practices is a surefire way to alienate younger consumers. Gen Alpha and Gen Z see through performative sustainability efforts. They expect real, measurable action. If a brand isn’t genuinely committed to sustainability, diversity, and ethical sourcing, they will be called out and abandoned. Companies must align their operations with their values in a way that’s authentic and transparent, or risk losing this generation’s trust.
IQ: Looking ahead, what excites you most about Gen Alpha’s emergence into the global marketplace?
Ms. Vallis: What excites me most is their ability to redefine the world as we know it. They are the first generation to grow up in the digital age, which means they don’t see limitations the way previous generations did. They are bold, innovative, and unafraid to challenge outdated norms. Their expectations of AI, automation, and hyperpersonalization are going to push industries to evolve faster than ever before. They are incredibly entrepreneurial and financially literate at a young age, meaning they will likely create wealth in ways we haven’t seen before. The potential for innovation and disruption is endless, and that’s thrilling.
IQ: Does anything about Gen Alpha keep you up at night?
Ms. Vallis: While I’m excited about Gen Alpha’s potential, I also worry about the pressures they face. They are constantly connected, which means they never escape the influence of social media and the demand for instant gratification.
If we don’t create ethical and sustainable systems that align with their values, we risk alienating them or, worse, failing them entirely.
-M
aria
Vallis
EXPERIENCE
= EVERYTHING 78% 1
Despite their digital upbringing, 78% of young consumers, including Gen Alpha, prefer shopping in-store, highlighting the importance of physical retail experiences.
66% 2.5M
BRACE FOR IMPACT
Gen Alpha shows a strong preference for brands that positively impact the world, with 66% drawn to companies with ethical and sustainable practices.2
Approx. 2.5 million Gen Alphas are born globally each week; total population is expected to reach 2 billion in 2025.3
Mental health challenges are on the rise among young people, and the pressure to perform, curate their lives, and stay ahead could be overwhelming.
Additionally, the pace of technological advancement means that businesses, governments, and institutions may struggle to keep up with their expectations. If we don’t create ethical and sustainable systems that align with their values, we risk alienating them or, worse, failing them entirely
$84T
The “Great Wealth Transfer” is projected to shift ~$84 trillion from Baby Boomers to Gen Alpha over the next two decades. 4
IQ: Lastly, what should executives keep top of mind as they prepare for the next five to ten years?
Ms. Vallis: The most important thing is to listen. Gen Alpha and Gen Z expect brands to hear them, engage with them, and evolve based on their feedback. Companies that remain rigid in their strategies will be left behind. The future belongs to businesses that embrace hyper-personalization, ethical business practices, and the new digital reality of consumer engagement. IQ
A Numbers Game Gen Alpha and Gen Z’s impact on financial markets and industries will be nothing short of disruptive, which is on-brand for these combined generations, for whom brand loyalty is a thing of the past.
SEEKING ALPHA
SEEKING ALPHA
HOW COMPANIES AROUND THE GLOBE ARE PREPARING FOR GEN ALPHA & Z.
By Tracy D. Holloman
Baby Boomers, Gen X, Millennials, Gen Z, and now Gen Alpha. With all of these generations in the workforce at the same time, it requires companies to hyper-personalize how the work gets done to match each generation. Companies like FedEx, EY, and Mitel are already considering what will be needed as Gen Z and Gen Alpha enter the workforce. These organizations recognize that environmental sustainability, mental health, flexible work schedules, social responsibility, and technological advancements in AI and virtual reality will be necessary for Gen Z and Gen Alpha. FedEx has focused its attention on sustainability initiatives, mental health support, and the implementation of environmentally responsible business practices that attract and retain future Gen Z and Gen Alpha talent. Mitel has focused its attention on the remote experience of the incoming Gen Z and the future incoming Gen Alpha. Since Gen Alpha and Gen Z experienced their parents working
from home during the pandemic, they have missed opportunities to build foundational skills and professional relationships in the same way as their more experienced colleagues. Mitel will also focus on providing flexible work experiences, promoting a sense of purpose, and investing in digital tools and AI integration.
EY is preparing for the future as Gen Z and Gen Alpha enter the workplace.The organization’s strategy is to develop innovative approaches to teach transferable skills so that future workers can adapt to constant change and find meaningful work. They are also focused on investment in technology and digital tools, fostering diverse and inclusive work environments, implementing feedback systems, finding commonality across generations, and focusing on outcomes rather than inputs through flexible work schedules. EY will also emphasize learning and development, which enhances skill development and supports curiosity. More importantly, EY is preparing for the shift in workforce composition as Gen Z and Gen Alpha begin to make up a large portion of the workforce.
The future is happening faster than the speed of light. Every organization should consider the generations to come and understand how they will impact the world of work, what they will need to be successful, and what they can do to meet them where they are. IQ
Organizations recognize that environmental sustainability, mental health, flexible work schedules, impact, and technological advancements in AI and virtual reality will be necessary for Gen Z and Gen Alpha.
At L’Oréal, Global Beauty Tech Services
Director Béatrice Dautzenberg is leveraging hyperpersonalization to create tailored skincare, makeup, and haircare solutions while promoting ethical AI practices to ensure the brand remains
Cleverly
Chic Cleverly Chic
BY KATERIN LEFOLCALVEZ
“In this world of unlimited choices, universality has given way to singularity and extreme personalization. Consumers now expect beauty solutions that cater to their preferences, addressing their unique needs and desires.”
—Béatrice Dautzenberg
Global Beauty Tech Services Director, L’Oréal Groupe
The future of beauty isn’t just about looking great —it’s about technology that knows you. Hyper-personalization has become the new frontier, and L’Oréal is leading the charge with AI-driven beauty solutions that don’t just enhance appearances but redefine how we experience self-care.
At the helm of this revolution is Béatrice Dautzenberg, Global Director of Beauty Tech Services at L’Oréal Groupe, the powerhouse driving the fusion of cuttingedge tech with the art of beauty. Think AIpowered skin diagnostics, virtual try-ons that nail your perfect shade in seconds, and personalized beauty routines built just for you. From leveraging massive data sets to forging game-changing partnerships with tech giants, L’Oréal isn’t just keeping up— it’s setting the pace.
In this exclusive 1x1 with Insigniam Quarterly, Ms. Dautzenberg pulls back the curtain on how AI is transforming the beauty industry, what it takes to build truly inclusive and sustainable beauty tech, and why the next wave of innovation will be nothing short of revolutionary.
IQ : Why is hyper-personalization central to L’Oréal’s long-term corporate strategy, and how has it served as a growth driver for L’Oréal thus far?
Ms. Dautzenberg: Tech has transformed the customer journey by multiplying the number of possible interactions with brands, thereby redefining points of communication, products and points of sale. In this world of unlimited choices, universality has given way to singularity and extreme personalization, and the cosmetics industry is no less affected. Consumers now expect beauty solutions (products and services) that cater to their individual preferences, addressing their unique needs and desires.
Transitioning from ‘beauty for all’ to ‘beauty for each,’ at L’Oréal, we address the unique needs, expectations, and desires of each individual. We leverage our two powerful engines: Science and Technology, to create the most comprehensive and advanced beauty experiences.
In 2018, L’Oréal transitioned into a new era, introducing the term ‘Beauty Tech’, seizing the potential of new technologies to invent the beauty of the future – one that is more personalized, more inclusive, and more responsible.
IQ : Which hyper-personalization initiatives have been most effective in driving consumer engagement and loyalty? Where do you see the biggest opportunities for further growth?
Ms. Dautzenberg: Beauty Tech is revolutionizing the consumer beauty journey with ultra personalization all the way from the hairdresser’s chair to beauty points of sales or directly at home through online platforms, augmented beauty devices and mobile applications. We have created a range of offline and online tools and services to offer ultra personalized experiences across multiple categories, from haircare to skincare to make-up. We also use AI to develop skin analytical tools that allow consumers to understand and diagnose the specific needs of their skin. This helps us recommend products tailored to their
individual needs. In 2024, we provided skin diagnosis and recommended beauty routines in-store in 56 countries through 7 of our brands, such as Lancôme, Prada and Kiehl’s. This personalized service is boosting conversion rates with up to 70% of consumers purchasing products after the experience.
Furthermore, with AI we are able to personalize products based on the specific needs of each consumer. This can include customized formulations, skin- matching shades, and personalized product recommendations. For example, by identifying up to 22,000 different skin tones via a unique algorithm, Lancôme Shade Finder can recommend the ideal
Beauty Spot
Based on AI revolution and developed with leading dermatologists, L’Oréal’s SPOTSCAN is a skin diagnostic tool for acne sufferers designed to amplify access to dermatology. Spotscan requires just 3 selfies to analyze and score imperfections, thanks to a bank of 6.000 photos of all ethnic skin types and based on a GEA (Global Acne Severity scale) scoring, recognized by dermatologists.
High-Tech Foundation
L’Oréal subsidiary Lancôme’s E-Shade Finder analyzes your unique skin tone in order to determine your perfect match. The tool analyzes your skin tone—using a selfie and AI— to match you with your ideal Lancôme foundation shade instantly.
shade match from within Lancôme foundation ranges, with up to 50 different shades available.
In total, in 2024, we provided more than 110 million uses of our Beauty Tech services across all platforms, in 66 countries and 33 brands.
IQ : In developing AI-driven personalization tools, how does L’Oréal address potential biases in AI models to ensure fair and accurate recommendations for all skin tones and types, for instance?
Ms. Dautzenberg: The group has worked to lay down a Responsible Framework for Trustworthy AI. One of its 7 principles includes “Non-Discrimination and Fairness”: L’Oréal seeks to ensure that its AI systems are inclusive of multiple dimensions of diversity. Alongside experts, L’Oréal actively works on the framework to reduce bias.
The group aims to avoid creating or reinforcing unfair bias in its AI systems by ensuring that data sets used by these systems are representative of the diverse populations with which it engages. By training our algorithms on inclusive
data sets, as well as having experts actively working on our framework to reduce bias risk, the group commits to diversity and inclusion in AI development and deployment.
As an example, while working with Microsoft Teams and Maybelline New York to launch the beauty app that allows you to effortlessly choose a virtual make up powered by AI, to best express your personal style, we partnered with the Geena Davis Institute to make sure our solution was as inclusive as possible and would work with all skin tones.
IQ : How does L’Oréal leverage consumer data for AI-driven personalization while ensuring privacy protection and compliance with global data regulations?
Ms. Dautzenberg: Since the beginning of L’Oréal’s journey into AI, data has been our driving force, with Data Governance teams playing a pivotal role in its strategic use. After over a century solely dedicated to beauty, we have the world’s richest database with 14,500 terabytes of data concerning all aspects of beauty – from skin and hair knowledge to formulation science, and from beauty routines to connecting with our consumers across our 37 international brands across all beauty categories and channels. Data shared by consumers is one of a company’s most valuable assets, and digital services are among the best quality data providers in a cookie-less world.
It is fundamental to earn consumers’ trust by operating with the highest standards of ethics and transparency - particularly by developing inclusive, unbiased algorithms. We have what we call a virtuous data circle, allowing us to power formulation and innovation, and to elevate our beauty experiences.
IQ : What is the strategic rationale behind L’Oréal’s commitment to corporate partnerships with technology companies and platforms? What objectives do these collaborations fulfill?
Ms. Dautzenberg: L’Oréal Groupe is diligently building strategic and exclusive partnerships to shape the future of beauty. These partnerships offer expertise that compliments the group’s strengths.
From academia to startups, tech companies and giants, our partnerships are diverse and uniquely crafted. Cocreating with our partners makes open innovation the catalyst for creating unparalleled advancements and unprecedented innovations.
IQ : L’Oréal’s collaboration with Meta focuses on hyper-personalization through generative AI. What have been the key outcomes of this partnership, and how has it impacted consumer engagement?
Ms. Dautzenberg: During VivaTech 2024, L’Oréal Groupe and Meta unveiled the New Codes of Beauty Creator Program to empower the next generation of 3D, AR, and AI creators and explore new creative frontiers in beauty.
This has led to more than 50 campaigns co-developed with artists using cuttingedge tech, resulting in over 100 million views across digital platforms for brands such as L’Oréal Paris, Lancôme and La Roche Posay.
IQ : With the launch of AI-powered tools like Beauty Genius and Lancôme’s HAPTA, how is L’Oréal ensuring these innovations cater to diverse consumer needs and enhance the consumer experience?
Ms. Dautzenberg: Today, consumers have a hard time finding the right products, with over 70% overwhelmed by the number of choices available. They ask friends, search online, or watch videos to try and make sense of the sheer number of products on store shelves, often facing decision paralysis.
Furthermore, consumers have very personal questions they aren’t comfortable discussing publicly, but don’t get answers because they have no one to turn to.
BIO: Béatrice Dautzenberg Global Director of Beauty Tech Services, L’Oréal Groupe
Béatrice Dautzenberg is the Global Director of Beauty Tech Services at L’Oréal Groupe, leading the integration of technology into beauty services to enhance personalization and consumer engagement. With over 22 years at L’Oréal, Ms. Dautzenberg has held various leadership roles across countries including France, the UK, Australia, Belgium, and Canada. Her career encompasses positions such as Managing Director of L’Oréal Professional Products Division UK & Ireland and Director General of L’Oréal Professionnel Canada.
Ms. Dautzenberg holds a business and marketing degree, having studied in France and Spain. She is passionate about leveraging technology to transform collaboration and consumer experiences in the beauty industry.
“As brands use AI for personalization, they must ensure it’s unbiased, inclusive, & respects privacy. Ms. Dautzenberg profoundly understands both tech and human needs. She’s not just using AI to enhance beauty— she’s making sure it reflects the diverse consumers L’Oréal serves.”
To solve this, as the number one beauty brand in the world, L’Oréal Paris has launched Beauty Genius, a Gen AIpowered personal beauty assistant available 24/7 in our consumers’ pockets. Available on L’Oréal Paris’ website, Beauty Genius offers AI-powered diagnostics, virtual try-on, and personalized tutorials through a seamless, enjoyable user experience with a friendly tone, intuitive emojis, and interactive features.
We also decided to use tech to create inclusive beauty. Indeed, 1 out of 7 people worldwide live with a disability, including tens of millions who experience limited hand mobility due to accidents, cerebrovascular diseases, or Parkinson’s disease. We partnered with Verily – an Alphabet precision health company - which had developed a fork for individuals seeking autonomy, to create HAPTA by Lancôme
The world’s first AI-powered motionstabilizing device for users with limited hand, wrist and arm mobility, adjusts movements in real-time using smart motion controls with 360-degree rotation and up to 70- degree flexion.
IQ : Looking ahead, which emerging technologies do you believe will further enhance L’Oréal’s ability to deliver hyper-personalized beauty solutions?
Ms. Dautzenberg: While GenAI focuses on creating original content (such as text, images, music, or code) based on human guidance, agentic AI represents the next wave in AI evolution, being action-oriented and capable of making decisions and acting autonomously with minimal human intervention.
In essence, while GenAI creates, agentic AI acts. At L’Oréal, Beauty Genius is a perfect illustration of agentic AI in action, showcasing how this new wave of AI can transform the beauty experience by combining autonomy with intelligence.
IQ : From your vantage point, how do you see hyper-personalization expanding beyond luxury into the mass market? From your perspective, how can it be scaled effectively while keeping costs under control?
Ms. Dautzenberg: In mass market, consumers do not have Beauty advisors to whom they can ask for advice or personalized recommendations, yet we know that 81% of consumers prefer companies with personalized shopping experiences. They are now seeking experiences that go beyond transactions: they are looking for enjoyable moments and practicality in their shopping. To meet these new expectations and stand out in the vast retail landscape, brands must be agile and constantly elevate the consumer experience.
For L’Oréal, augmented products are a direct response to a strong consumer demand for greater transparency as well as increased personalization. As we continue to champion Beauty Tech, our vision of augmented products goes beyond providing information; it opens new ways to connect with consumers through innovative digital services and personalized experiences.
We have already deployed this technology on nearly 1.8 billion products across our brands in 2024, but we are not stopping there. We are scaling across our portfolio in the coming years, and our goal in the long term is to equip with QR codes 100% of our eligible products (with product size above 20ml).
IQ : What lessons from hyperpersonalization in the beauty industry could be applicable to other sectors? Are there insights from consumerdriven industries that could be relevant elsewhere?
Ms. Dautzenberg: We have entered the services economy. Consumers expect services and personalization in their daily lives. In an ocean of choices, they want to be guided, to access diagnostics and recommendations based on their needs. People like to do simulations with augmented reality before buying to be reassured. This quest for coaching is true for beauty and is relevant for many other industries.
What is key for companies when working on personalization is the quality
of the data, along with strong governance on AI and new technologies. Based on our ethical principles (Integrity, Respect, Courage and Transparency) we have established seven “Principles for Trustworthy AI.” By working with experts to define a framework that guides L’Oréal in the development, deployment, and use of AI systems. Those principles are:
• Human Oversight: To prevent overreliance on algorithmic decisionmaking.
• Safety and Reliability : To ensure careful implementation of data sets and algorithms.
• Privacy and Data Protection: To provide consumers with appropriate information and control over their data.
• Transparency and Explainability: To inform consumers when and how they interact with AI systems.
• Non-Discrimination and Fairness: To represent all of the diverse populations with which we engage.
• Accountability: To guarantee riskprevention and quality management systems.
• Sustainable AI: To leverage sustainable development commitments and monitor the environmental footprint of these systems.
With L’Oréal beauty tech, new frontiers are opening. We are crafting beauty for each, more personalized, more inclusive and more responsible.
IQ : What excites you most about the future? Conversely, are there any challenges or constraints that keep you up at night?
Ms. Dautzenberg: We are now going one step further in personalized diagnosis, revolutionizing the projection of skin evolution for long-lasting, healthy skin.
As an example, we partnered with Google Maps Platform, the Climate Tech company, to uncover insights around the impact of environmental exposure on skin. It allows us to gather anonymized, location-based data on environmental factors like air quality, UV exposure, and weather to better understand how they impact the health and appearance of skin. To keep leading in beauty we will continue to lead in beauty tech, designing the most personalized, high-performing and memorable beauty experiences for over a billion people across the globe. IQ
Tech for Good, Beauty For All.
First unveiled at CES 2023, HAPTA by Lancôme, a L’Oréal subsidiary, was designed to make beauty more inclusive for individuals with hand-motion disorders, arthritis, and mobility challenges. HAPTA uses advanced sensors and motion-stabalizing technology to keep the device level, constantly adjusting to the user’s position. It is also ergonomically designed, with an easygrip handle specifically made for those with mobility conditions.
* PROTOTYPING GENIUS THE MAGIC OF DESIGN THINKING
BY MARIE-CAROLINE CHAUVET & JON KLEINMAN
* Adapted from a chapter of Design Thinking: New Product Development Essentials from the PDMA, Wiley-Blackwell.
Empathy, ideation, collaboration, and iteration are not typical terms in corporate executive discussions, which usually focus on financial metrics and employee retention. However these concepts have become central to doing business in an era of hyperpersonalization. Executives aiming to better serve customers and consumers should understand these terms and intentionally take them on to develop or retain a competitive advantage. Embedding a Design thinking mindset, culture and the associated systems, processes and practices can create the conditions of a future-fit environment that allows for new value to be delivered to customers and consumer.
Roger Martin, former dean of the Rotman School of Management and a pioneer in design thinking, noted that adopting design thinking requires more than appointing a chief design officer; it necessitates fundamental changes to operate like design firms. To fully benefit, companies must embed design into their business strategies, cultures, processes, and structures. Unfortunately, many corporate cultures hinder design thinking, but embedding it can offer a competitive advantage.
Achieving this advantage requires reevaluating the organizational context, primarily corporate culture, which influences all aspects of a company.
Culture affects strategic choices, managerial tactics, and employee behaviors, reinforcing certain actions while discouraging others. It can drive innovation or maintain the status quo, making it a crucial determinant of organizational effectiveness. Implementing initiatives like design thinking succeeds not merely through training or directives but by aligning with corporate culture, even if it means replacing existing elements. Transforming culture is complex and risky, akin to scaling Mount Everest—a challenging journey not to be undertaken lightly.
Often, corporate culture evolves organically from a company’s founding, reflecting past successes and avoiding failures. This default culture can limit possibilities, becoming a relic that shapes perceptions and actions. For example, Henry Ford’s influence persisted at Ford Motor Co. long after his death, hindering adaptation to a changing market until leaders intentionally transformed the culture to regain competitiveness.
In many organizations, culture obstructs design thinking and innovation. Design thinking is humancentric, requiring empathy, risktaking, prototyping, and acceptance of failure—traits often at odds with data-driven, hierarchical corporate cultures that emphasize rigid returns on investment and penalize failure.
R eprinted with permission.
THE HYPER-
PERSONALIZATION ISSUE
To embed design thinking, companies should assess their culture, identifying aspects that conflict or align with design thinking principles like empathy and prototyping. As Jeremy Utley of Stanford’s d.school suggests, it’s unwise to oppose culture; instead, find elements that support a design thinking mindset. Organizations must confront their current culture, design one that leverages design thinking for future success, and implement changes swiftly to avoid inheriting undermining aspects of the old culture.
Forces that can Hinder Design Thinking & Innovation
Corporate culture, the condition shaping perceptions and actions within a company, acts like an invisible force influencing effectiveness and longterm success. It offers a competitive advantage in markets with limited differences between competitors. For instance, Southwest Airlines’ unique culture has contributed to its consistent profitability, a trait difficult for competitors to replicate.
However, established companies often have fixed cultures that resist change, leading to inflexibility and inefficiency. In healthy companies, culture adapts to market forces, but when past practices dominate, success becomes about pleasing superiors rather than responding to market changes. To avoid this, organizations must empower employees to innovate and adapt, fostering a culture of renewal and reinvention.
Design thinking challenges assumptions about customer needs,
encouraging organizations to reassess offerings and processes. It promotes collaborative efforts to build new solutions, pushing companies to continually innovate.
In large enterprises, certain cultural aspects often inhibit design thinking and innovation. These manifest in organizational practices, structures, and thought patterns, acting as forces that block innovation.
This force stems from a focus on legacy business models and core products, diverting resources from exploring new ideas. To counteract this, leaders can deliberately support and sponsor cross-functional teams that take on applying design thinking to challenges that will bring new value to customers and consumers. Organizations may also resist cultural changes involuntarily, akin to a body’s immune system rejecting foreign substances.
Employees excel by satisfying their managers’ expectations, making them hesitant to disrupt established processes with new methods like design thinking. Leaders must engage in tailored conversations to inspire different divisions, applying design thinking principles to their own roles to demonstrate its value.
Corporate myopia prevents executives from recognizing the value of innovations, including new methodologies like design thinking. Executives confident in their market understanding may dismiss
A Process of Discovery Design thinking challenges assumptions about customer needs, encouraging organizations to reassess offerings and processes. It promotes collaborative efforts to build new solutions, pushing companies to continually innovate.
breakthroughs that don’t align with their perceptions or corporate strategy. For example, Nestlé’s executives initially tried to kill the now-successful Nespresso system, as it didn’t fit their mass-market model. The system thrived after being established as a separate entity with fresh perspectives. Design thinking itself can counteract corporate myopia by involving consumers in prototyping, allowing them to determine value and suggest improvements.
Four Pillars of Innovation for Enabling Design Thinking
No one, not even expert mountain climbers or Sherpas in the Himalayas, just shows up and starts climbing Mount Everest. It takes years of experience, months of preparation, and many things going to plan. Similarly, design thinking can’t be embedded in corporate culture without building a stable foundation.
In The Power of Strategy Innovation, Mr. Johnston and Mr. Bate identified four critical pillars supporting advanced strategy innovation, adapted here as the “Four Pillars for Effective Creativity and Innovation.”
1Leadership Mandate
Top executives must commit to innovation through design thinking as a corporate priority. This commitment must be embedded in corporate strategy. Executives must learn, practice, and lead design thinking adoption. They need to make the case that innovation is vital to the organization’s future, with a clear,
Minimalized Myopia
Design thinking itself can counteract corporate myopia by involving consumers in prototyping, allowing them to determine value and suggest improvements.
enterprise-wide mandate. This includes permission to innovate, backed by funding, people, time, and space.
Example: In 2001, Procter & Gamble CEO A.G. Lafley said, “We will not win on technology alone. Therefore, we need to build design thinking into the DNA of P&G.” He backed his words with action: attending design thinking workshops, meeting with an external design board, working closely with VP Claudia Kotchka, and personally observing consumers. His leadership modeled a designthinking-driven transformation.
2
Dedicated Infrastructure
Dedicated infrastructure organizes people, resources, budgets, timelines, space, and metrics. The seriousness of this infrastructure reflects the seriousness of the mandate. Visible investments signal commitment. Infrastructure may include roles like an innovation office or self-managing teams.
Example: At a successful healthcare company, executives realized continued growth required cultural transformation, focusing more on patients than fiscal discipline. They decided the risk of staying the same outweighed the risk of change.
• Step 1: Conduct a cultural assessment using customdesigned questions to interview and survey employees at all levels. The analysis revealed supportive and inhibiting aspects of the culture.
• Step 2: Establish an office of transformation and a leadership coalition of 40 people from across the organization. A full-time transformation executive led the group, which drafted new values, vision, and practices.
• Step 3: Set a budget and deadlines. The first phase had an 18-month timeline and dedicated funding.
• Step 4: Form an enrollment team to inspire and engage the workforce. Members were trained in design thinking and communication, and crafted tailored messaging.
• Step 5: Launch keystone projects and development initiatives. A 30-person team developed and executed a critical project aligned with the new culture. Simultaneously, 18 top executives underwent leadership development, each leading a collaborative project.
Within 18 months, the company significantly improved and rose to the top of its industry on key metrics. Note: Management’s first rule is you get what you reward. But also, what you measure matters. Metrics must track the value generated by design thinking. At Clorox, Wayne Delker created innovation metrics that helped secure ongoing investment, creating a virtuous cycle.
THE HYPERPERSONALIZATION ISSUE
3
Proprietary Process
To align with culture, infrastructure, and mandate, a company’s design thinking process must be proprietary— tailored to its unique business, assets, and culture. Learning from others is valuable, but copying their processes often fails due to different organizational contexts. Context trumps content.
Example: former Sony CEO Norio Ohga said, “We assume all competitors’ products have the same technology, price, and features. Design is the only differentiator.” Companies must design and implement their own creativity and innovation processes.
4
Supportive Culture
A supportive culture welcomes new ideas from all levels, manages risk wisely, and avoids fear of failure. It combats corporate gravity, immune systems, and myopia.
Compare General Motors and Toyota—same industries, vastly different cultures. Culture can be a major advantage or a barrier. As Herb Kelleher of Southwest Airlines said, culture is a differentiator.
Cultural transformation and serious design thinking efforts are not onesize-fits-all. They must be crafted with the organization’s current state, history, leadership, and strategic goals in mind. Every change initiative must begin by honestly assessing where the organization is today.
HYPERPERSONALIZATION
Cultural transformation and serious design thinking efforts are not one-size-fits-all. They must be crafted with the organization’s current state; every change initiative must begin by honestly assessing where the organization is today
Four Stages of Transforming to a Culture of Design Thinking
If you’re convinced that embedding design thinking into your culture offers a competitive edge, here are four stages to guide your organization through successful transformation.
Reveal: Identify strategy, culture, processes, systems, and structures that support or block design thinking as well as:
• Uncover hidden assumptions and beliefs that shape what’s considered possible.
• Examine unwritten rules for success and how new offerings come to market.
• Analyze how past failures and successes shape thinking about business, market, and customers.
• Are you innovating or just keeping pace? Is your market approach generative or reactive?
Unhook: Identify beliefs that distort your view of facts, such as:
• Stop blaming external forces like the economy or flawed data for results.
• Ask: Are you truly listening to customers or assuming their responses?
• Has “the way” become “the only way?”
• Challenge long-held norms and outdated assumptions.
• Own the narratives that shape culture and set them aside.
Invent: Consider the following points:
• What will the future marketplace look like?
• What company would succeed wildly in that future?
• Define purposes and ambitions that excite and challenge your people.
• Clarify values that support your commitments.
• Establish principles to guide thinking and work.
• Define your leadership mandate for design thinking.
Implement: In the final stage:
• Initiate new enterprise-wide conversations.
• Enable cross-functional collaboration.
• Make the customer present in daily work and dialogue.
• Identify projects to apply design thinking.
• Hold people accountable to act in line with the new culture.
Unleash the Magic
Design thinking is a powerful business approach and potential competitive advantage— when embedded into culture, strategy, systems, and practices. Organizations that adopt it see strong outcomes for customers, employees, and performance. Embedding it requires strategic and cultural transformation, a complex and risky endeavor. But by aligning culture with design thinking and implementing supportive structures, leaders can drive lasting performance gains. IQ
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