REAL AND RELEVANT

MAKINGAN

IMPACTTHROUGHDIGITAL ILONA SIMPSON

CIO IN RESIDENCE, SENIOR ADVISOR & VENTURE PARTNERARIADNE CAPITAL

3 MARCH 2016

ABOUT: ARIADNE CAPITAL

• VENTURE CAPITAL & ADVISORY• START UPS

• INVESTMENT, NURTURE, SUPPORT• INVESTORS

• ENTREPRENEURS BACKING ENTREPRENEURS• CORPORATES

• SPEED TO MARKET / NEW PRODUCT LAUNCHES

ABOUT: ILONA SIMPSON

• CORPORATES• PORSCHE, DHL, ASTON MARTIN• SERVED ON 2 EXCOMS

• IT AND MANAGEMENT CONSULTING• ACCENTURE, SCHICKLER

• START UPS• BUILDING: VC FUNDED DIGITAL START UP• MENTORING: UCL ADVANCES, VIRGIN START UP• INVESTING: ONLINE FRAUD PREVENTION

EXECUTIVE SUMMARY

• THE ESSENCE OF DIGITAL• WHY DIGITAL MATTERS• HOW IS IT CHANGING THE OPPORTUNITY• THE MYTHS• THE TRUTHS• WHERE TO START• EXAMPLES• KEY TAKEAWAYS

THE ESSENCE OF DIGITAL

source: IESE Business School

THE ESSENCE OF DIGITALWHY DID THEY DO IT? BECAUSE THEY COULD!

source: IESE Business School

THE ESSENCE OF DIGITAL

THE ESSENCE OF DIGITAL: CONSUMERISATION

TECHNOLOGY ABSORPTION

THE ESSENCE OF DIGITAL: CONSUMERISATION

DEFENCE & GOVERNMEN

TENTERPRISE CONSUMER

TECHNOLOGY ABSORPTION

traditional

THE ESSENCE OF DIGITAL: CONSUMERISATION

DEFENCE & GOVERNMEN

TENTERPRISE CONSUMER

TECHNOLOGY ABSORPTION

with consumerisation of IT

traditional

DIGITAL VERSUS IT

DIGITAL: KEY PRINCIPLE

DIGITAL: THERE IS NO SUCH THING AS AVERAGE CUSTOMER

Digital workplace based onpersonas

JTBD and… personas!Designing the car with the customer in mind…

WHY DIGITAL MATTERS (1)DAVOS 2016: “DIGITALISATION HAS REACHED US ALL AND CHANGED EVERYTHING”

WHY DIGITAL MATTERS (2)

WHY DIGITAL MATTERS (3)

HOW DIGITAL IS CHANGING THE OPPORTUNITY (1)

2000

100 STAFF1M USERS

$10M RAISED

TODAY

10 STAFF10M

USERS$1M

RAISED

?

1 ENGINEER1M USERS$0 RAISED

source: a16z

HOW DIGITAL IS CHANGING THE OPPORTUNITY (1)

“The battle between every startup and incumbent comes down to whether the startup gets distribution before the incumbent gets innovation.”

Alex Rampell, www.a16z.com

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

ECOSYSTEM ECONOMICS(TM)

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

CORPORATE PARTNERS

ECOSYSTEM ECONOMICS(TM)

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

CORPORATE PARTNERS

TECHNOLOGY PARTNERS

ECOSYSTEM ECONOMICS(TM)

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

GOVERNMENT PARTNERS

CORPORATE PARTNERS

TECHNOLOGY PARTNERS

ECOSYSTEM ECONOMICS(TM)

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

GOVERNMENT PARTNERS

CORPORATE PARTNERS

TECHNOLOGY PARTNERS

ECOSYSTEM ECONOMICS(TM)

START UPS

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

GOVERNMENT PARTNERS

CORPORATE PARTNERS

TECHNOLOGY PARTNERS

ECOSYSTEM ECONOMICS(TM)

START UPS

EARLY ADOPTERS 225,000

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

GOVERNMENT PARTNERS

CORPORATE PARTNERS

TECHNOLOGY PARTNERS

ECOSYSTEM ECONOMICS(TM)

START UPS

INVESTORS: EX FOUNDERS AND EXECS OFHOTMAIL, QUALCOMM, AMAZON,…

EARLY ADOPTERS 225,000

HOW DIGITAL IS CHANGING THE OPPORTUNITY (2)

DIGI

TAL

ENAB

LER

Strategic Value

Financial Value

Network Effects

Vulnerability DISTRIBUTION

Ecosystem Economics™ shifting industry playersConsumer Data sets become prevalentNetwork Orientation at heart of the consumer insight

When partnering with,1) Brings new digital

revenues2) Brings lean operating

system

When acquired,1) Can become2) Can reinforce or gain

a position as industry architect

RentingNot Licensing

Operating system to the industry

ECOSYSTEMS ECONOMICS(TM)

source: Ariadne Capital

THE MYTHS

MYTH #1“YOU WON’T GET FIRED IF CHOOSING …”

Tesla CIO Builds ERPIn-House in 4 Months,

Says No Time forERP Upgrades

MYTH #2DIGITAL IS ABOUT MARKETING AND B2C

MYTH #3DISRUPTION FROM WITHIN …

BUT… WHAT ABOUT IP?

THE TRUTHS

CULTURE

THE TRUTHS: CHALLENGES TO SOLVE

THE C TRIAD

COMMITMENTCOST

CULTURE: MANAGEMENT OF RISK

CULTURE: MANAGEMENT OF RISK

… is an active, vibrant place

that rewards creativity and unconventional

thinking.

CULTURE: MANAGEMENT OF RISK

ESTABLISHED2009

HEADQUARTERS

SAN FRANCISCO

… is an active, vibrant place

that rewards creativity and unconventional

thinking.

CULTURE: MANAGEMENT OF RISK

CULTURE: THINKING OUTSIDE THE BOX

CULTURE: THINKING OUTSIDE THE BOX

COMMITMENT: CHOOSE YOUR BATTLES

COMMITMENT: CEO SPONSORSHIP AND EXCOM READINESS

source:IESE Business School

COMMITMENT: FOCUS ON WHAT YOU CAN CONTROL. CONSIDER ALTERNATIVES

COMMITMENT: WHERE IS THE FUTURE GOING

SecureAnyMobile

COST: CAN WE AFFORD IT?

COST: SAVINGS AT THE EXPENSE OF SERVICE

EXAMPLES

EXAMPLES: SIMPLIFICATION

EXAMPLES: SIMPLIFICATION• Leader Gartner Enterprise

Architecture Tools• Growth pivot 2012• 82 employees• 3,000+ customers

EXAMPLES: GOING DIGITAL

EXAMPLES: GOING DIGITAL

EXAMPLES: GOING DIGITAL

EXAMPLES: OPEN INNOVATION

• Fast "pseudo market" feedback on your R&D.

• Relatively cheap.

• Helps to build a community of interest around your specific product or marketing campaign.

• Can generate some great ideas.

• Applicable to anything.Filmmaker in New Zealand wins crowdsourcing competition

On US National Television on Valentines Day 9PM

KEY TAKEAWAYS

• DIGITAL IS ACCESSIBLE AND AFFORDABLE• ALWAYS WORK WITH PERSONAS• DON’T FALL FOR THE MYTHS• THREE C: CULTURE, COMMITMENT, COST• START BY MANAGING WHAT’S IN YOUR CONTROL• THINK BIG!