Post on 21-Sep-2014
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Deciphering the 5 generation of digital workers and customers
February 2014
A Futurist View Ahead On Digital Disruption
R “Ray” Wang Chairman & Principal Analyst(@rwang0)
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52% of the Fortune 500 firms since 2000 are gone
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Where will your business be in 2015?
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1. Macro trends
2. Dynamic work force
3. Disruptive tech adoption
4. New digital business models
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The answers to these questions have massively changed
Where you work?
When you work?
What you work on?
How you work?
Why you work?
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Tech convergence powers digital disruption
Mobile Social Cloud Big Data Video
Design Thinking Inspired User Experience
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More power in your handset than there was to send a man to the moon
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How customers use social media is one indication of digital proficiency.
Twitter – I need to pee
Facebook – I pee’d
Google+ - More pee in circles
FourSquare – I’m peeing here
Pinterest – My pee scrapbook
Instagram – My pee in sepia
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LinkedIn – hire me to pee
Path – watch me pee privately
You Tube – Watch me pee
Vine – Watch my pee loop
SnapChat – I have no proof I pee’d
Jelly – Does this look like pee?
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Richer user experience and
user productivity
Rapid IT implementation
and optional higher quality deployment
More frequent cycles of
innovation
Minimal upgrade hassles
Access to the “always-on” SaaS tools regardless
of location Subscription pricingAnytime
scalability and dynamic capacity
The Cloud Is The Innovation Platform
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Signals from social, mobile, location, payments, network intelligence drive context Volume
Velocity
Variety
Veracity
Viscosity
ViralityBig Data
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Digital disruption is more than just a technology shift. It’s about business
models
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Incremental innovation is normal
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Transformational innovation is breakthrough
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Pace of change is fierce as business models converge
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Those that fail will fall far behind
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Five Generations Of Digital
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Age is not the factor. Digital proficiency brings different expectations and values
Digital Natives
Digital Immigrants
Digital Voyeurs
Digital Holdouts
Digital Disengaged
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Digital natives grew up with the internet
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Digital immigrants bridge the analog and digital worlds with ease
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Digital voyeurs peer in from the outside
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Digital holdouts will begrudgingly be forced
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Digitally disengaged worry about digital exhaust
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The Battle For Experiences And Outcomes
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Transform business models
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Siemens doesn’t sell imaging systems
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Disney doesn’t sell theme park tickets
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The business model shift is here and cloud plays a key role• Product companies give
away product for service revenues.
• Service based businesses sell experiences at varying price points and service levels.
• Experience based businesses selling business models
• Business model companies sell peace of mind.
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Customers seek outcomes not products
Improve relevancy
Influence buying behavior Generate referrals Drive conversion
rates
Increase attach rates
Grow lifetime value Reduce churn Improve customer
satisfaction
Improve overall engagement
Optimize acquisition costs
Deliver a 360 view of the customer
Support end to end outcomes
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Big data plays a key role in driving context and right time relevancy
© 2013 R Wang & Insider Associates, LLC. All rights reserved.
Data Sources
Information & Orchestration
Insight
Decisions & Actions
Tech
nolo
gy
Driv
en
Line
of
Busi
ness
Driv
en
• Structured• Semi-structured• Unstructured• Streams
• Physical• Virtual• Machine• Contextual
• Performance• Deduction• Inference• Prediction
• Next best action• Prevention• Suggestion• No action
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ContextRoles
Relation-ships
TimeLocation
Business process
Sentiment
Intent
Context provides relevancy from real time to right time
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The Rise of Big Data Business
Models
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Big data business models emerge
Information based differentiation
Drive demand
Create new service offerings
Improve c-sat
Drive lower cost models
Information brokering
Raw information
Analysis and insights
Benchmarking
Information based business platforms
Marketplaces
Deal making
Advertising
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Connected worlds and collaboration rely on big data and context
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Proactive maintenance is all contextual
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Source: GE
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Augmented reality opens up possibilities
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Matrix Commerce describes a buyer centric world
BuyerCentricity
Channels
Demand signals
Supply chains
Payment options
Enablers
Big data
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Applying the Futurist Framework
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2014 Outlook: A Futurist FramworkPolitical
Economic
Societal
Technology
Environment
Legislative
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Political (P) Pressures Point to a Lack of Digital Proficiency in the Political Class
Existing policy lags the pace of
change in technology and new business
models
Pay-to-play legislative influence hinders
disruptive business models
Technology ignorance
plagues the political class in
the West
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Economic (E) Trends Exacerbate Digital Business Disruption
An improving economic
outlook leads to tightening
of cheap money
Investment in the United
States remains attractive
Population dynamics play a key role in
growth strategies
Cost of human-based employment drives a push
to technology.
Manufacturing returns to
being locally based.
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Societal (S) Shifts Showcase the Digital Divide Ahead
Access trumps ownership in a
sharing economy.
Five generations of customers and workers
driven by digital proficiency, not
age
Sacrificing privacy for
convenience in a post-NSA/Snow
den world
Generational and class
warfare favor redistribution
programs
Resentment and backlash emerge
toward Silicon Valley for disruptive
technologies and business
models
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Technological (T) Trends Boost Digital Opportunities
Systems of engagement to
systems of mass personalization
at scale that deliver relevancy
Isolated networks to a
connected world of sensor-based and analytical
ecosystems that harness Big Data
Powerful yet static systems to
cognitive systems that
augment humanity
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Environmental (E) Factors Frame Long-Term Scenarios
Reduction of consumption and push for conservation
continues
Sustainable manufacturing processes are now vogue.
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Legislative (L) Lethargy Drives Knee Jerk Reactions
Individual freedoms and privacy take center stage
Scarcity of governmental revenue drives
excuses to create taxation opportunities
Expect more legislation to
address digital divide
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Next Steps
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“Begin with the end in mind”
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Progress from catalyst to co-creator
Inspires game changing transformation, conceives and designs innovation; applies disruptive forces; leads and evangelizes
Advises and recommends areas for business impact; delivers the larger perspective; delivers trusted advice
Initiates achievement of business and IT operational improvements; proven experiences; proactive approach to solution development
Enables improvement via broad portfolio of IT services; deep specializations in select areas; reactive response to new project requests
Provides commodity IT services; executes across a limited scope; project oriented
GREATESTVALUE
LOWESTVALUE
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Develops IP for the marketplace. IP can be software, products, or even information services
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Co-creator
Innovator
Advisor
Catalyst
Enabler
Provider
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Opportunities abound for owning the entire value chain
TransferSale of IP assets Share of IP asset
MaintainOwned IP Leased IP Assumed IP
OperateCost plus Gain share Rev share
BuildMobile Cloud On-premises Resold
DesignProducts Services Outcomes
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© 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved.
© 2010 - 2014 Constellation Research, Inc. All rights reserved.
New business models should be considered across these 3 axes
Com
plex
ity o
f Wor
k
Level of Differentiation
Degree of Control
Business Model
Process
Task
Decision making
Complex algorithms
Simple rules
Inno
vatio
n Ce
nter
Indu
stry
Sta
ndar
ds
Cent
er o
f Exc
elle
nce
49
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Questions And Answers
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Thank you
R “Ray” Wang
650.918.6619
R@ConstellationR.com
Twitter: @rwang0
http://
blog.softwareinsider.org
www.ConstellationR.com
© 2010 - 2014 Constellation Research, Inc. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. www.ConstellationR.com
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