Disrupting Digital BusinessBy R “Ray” Wang

Presented by Di ChartonAugust 2015

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52%

5Chapter 1

KEEPING THE BRAND PROMISE

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7Chapter 1

Massive disruption…

Accelerate the delivery of innovationDrive friction out of business modelsNew efficiencies free resourcesTime for innovationDifferent skill-set create new types of jobs

8Chapter 1

social mediacloud computing

video & unified communications

mobilityBIG DATA

the internet of things

9Chapter 1

Companies, brands, enterprises and organisations succeeding not due to disruptive technology…

but from a deep understanding of what it takes to build an organisation in a digital age and on a digital scale

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11Chapter 1

Brands become critical

Brand needs to answer the reason why

Authenticity of the brand promise

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Sell products / deliver services

Deliver authentic experiences & outcomes

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Selling something

Keeping brand promises

14Chapter 1

AUTHENTICITY

need for trust and transparency increases dramatically

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16Chapter 1

Organisations and individuals will need to know who they want to be…

and live and die by it

17Chapter 1

Develop disruptive business models

• Transformation focused• Relevant• Authentic• Intention driven• Networked

18Chapter 1

19Chapter 2

BEING TRUE TO YOURSELF

Business Model Transformation

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20Chapter 2

Those who do it successfully

• Root cause of the problem• Understand the possibilities• Push the limits• How can they take things to the very top

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22Chapter 2

Incremental vs Transformational

• Incremental innovation is the new norm – its expected• Transformational innovation doesn’t necessarily improve – It

breaks through…• you launch new business categories• you cannibalise existing business• you disrupt existing business models

23Chapter 2

Incremental vs Transformational

1. Understand your own organisational DNA

2. Business model shifts

24Chapter 2

1. Organisational DNA

• How ready are you?

• Set up reporting structures

• Design a budget that supports digital transformation

25Chapter 2

1. Organisational DNAHow ready are you?

• Market leaders – actively seek change• Fast followers – react to market leaders• Cautious adopters – justify• Laggards - reactive

26Chapter 2

1. Organisational DNAReporting structures

• Reporting structures drive metrics – drives the conversations

• Digital leaders belonging to executive• Digital leaders not just the chief digital officer• Executives at management level support the culture• Ownership

27Chapter 2

1. Organisational DNABudget

28Chapter 2

1. Organisational DNABudget

The secret sauce – inverted pyramid of needs

29Chapter 2

2. Business Models

30Chapter 2

2. Business Models

31Chapter 2

2. Business Models

32Chapter 2

2. Business Models

33Chapter 2

2. Business Models

But not just fighting to be cheaper and faster…

we’re fighting for experiences and outcomes

and that’s why we need to change business models

34Chapter 2

2. Business ModelsMetrics that matter to you…

Airline• Safety, on-time travel? • Revenue per passenger mile• Hub and spoke model approach (LAX, NYC)• Incremental growth – super hubs and spokes• Airbus A380 – 800 passengers, fuel efficient design• Increases revenue per passenger mile at airliner’s

convenience• Still incremental

35Chapter 2

2. Business ModelsMetrics that matter to you…

• Boeing 787 Dreamliner• Ultra light, ultra efficient – designed to go point-to-point,

nonstop flying• Reinvents the model at the customer’s convenience• Transformation• Airbus had to release Airbus A350 widebody

36Chapter 2

2. Business ModelsMetrics that matter to you…

• Healthcare industry - big imaging systems• Cost of machine, cost of financing, maintenance and service

contracts• Metric – revenue per scan per hour• In order to do that, machines need to be up and running• Business model transformation• Suddenly not about selling machine and support – providing

uptime which is what customer wants• Digital transformation

37Chapter 2

Transformational culture : shift to deliver on outcomes and experiences

Use data to change the way we serve our customers

And all about the brand promise and keeping brand promises

38Chapter 3

DATA EXHAUST

How contextual relationships drive relevancy and engagement

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40Chapter 3

Sense and respond

Creates the context behind authenticity

We’ve always had relevancy through our interactions – but not at scale

41Chapter 3

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90% world‘s data created in the last 2 years

43Chapter 3

Digital exhaust

Drowning in the data Real time information overloadToo much noise and not enough signalLooking for right time relevancy

44Chapter 3

We’re looking for “right time” relevancy

Right informationRight timeRight modeRight situationRight priority level

….and how we get there is through context

45Chapter 3

Context clues that move us from real time to right time

• Roles and relationships• Time and frequency• Location• Business process• Sentiment• Intent

46Chapter 3

47Chapter 3

• Data….context…insight….better business decisions

• How do we ask the right questions to bring that relevancy to the surface?

• Should show us how to be more authentic to our brand

• Mass personalisation

48Chapter 3

49Chapter 3

Analog world – every employee represents the organisation

50Chapter 3

Digital – not just about training and hiring or good culture… ability to deliver on context

51Chapter 3

Shift from analog to transactional systems – wave of automation-driven efficiencies in past century

Today…we’re in a world of engagement systems

52Chapter 3

Moving towards experiential systems delivering mass contextual relevancy at scale

Starting with end in mind…we’re crafting mass individual scale

53Chapter 3

Sense and respond and engagement (challenge: mass social scale)

TO

Agility and flexibility in experiences(challenge: contextual scale)

TO

Intention driven (challenge: mass individual scale)

54Chapter 3

Real time

TO

Right time

TO

Anticipatory

55Chapter 3

The nine c’s

• First set of C’s : People centric values (sense)• Second set of C’s: Delivery & Communication Style

(infrastructure for respond)• Third set of C’s : right time contextual drivers

56Chapter 3

The nine c’s1 – 3: people centric

• Culture• Community• Credibility

57Chapter 3

The nine c’s4 – 6: delivery & communication style

• Channel• Content • Cadence

58Chapter 3

The nine c’s7 – 9: right time contextual drivers

• Context• Catalyst• Currency

59Chapter 4

BEING FOX NEWS

Why trust and transparency enable authenticity

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60Chapter 4

• Earn trust

• Transparency is there to validate that trust

• Trust is the new currency

61Chapter 4

elements of trust7

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durability

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consistency

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competency

65Chapter 3timeliness

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meritocracy

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accountability

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respect

69Chapter 3

“Transparency is the acknowledgement that we’re living in a digital world, that all that history is in front of us, behind us, around us”

70Chapter 3

Some factors to consider…

• Engagement points – open & measurable• Content – earned, owned & paid• Chronology – sequence & results• Location• Product – what was exchanged?• Truthfulness

71Chapter 4

72Chapter 4

73Chapter 4

How did they establish trust?

1. Durable – consistently mined since April 20102. Consistency – exchanges allowed conversion into other

currencies3. Competency – acceptance as payment method (e.g. State of

California)4. Timeliness – public ledger chain5. Meritocracy system – mining of puzzles unlocks 15 bitcoins6. Accountability – 21 Million max. Public ledger chain7. Mutual respect - anonymity

74Chapter 3

A GLIMPSE INTO THE FUTURE

Building an intention-driven mind-set

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75Chapter 5

76Chapter 5

Intention-driven design

• Self –aware sentience : sense and response• Predictive models : smart algorithms• Augmented humanity : bring cognition to life

77Chapter 5

78Chapter 5

people as IP addresses

79Chapter 5

Deterministic models

• Fixed processes• Identify their best business processes, standardise to

improve quality and move forward.• Were great when first introduced.

80Chapter 5

Probabilistic models

• World of mass personalisation – no journey maps• Trying to determine what will happen, why, will it happen

again?• Precision decisions – at a point in time• Move towards asking and answering questions, forming

hypotheses• Algorithm’s the secret sauce

81Chapter 5

• Powerful systems that augment humanity• Self-learning and cognitive capabilities enable continuous

reprogramming• Human and machine guided decisions

82Chapter 6

NETWORKED ECONOMIES

Enabling co-innovation and co-creation in a P2P world

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83Chapter 6

What is P2P?

84Chapter 6

What is P2P?

Chapter 6 85

Reducing cost of transaction

1937Ronald Coase: “The Nature of the Firm”

Chapter 6 86

Reducing cost of transaction

Chapter 6 87

5 types of networks• Individuals • Direct teams • Partners and alliances• Extended value chains• Advocate ecosystems

Chapter 6 88

Force Multipliers

Chapter 6 89

Force Multipliers• Network sharing• User-generated content• Crowdsourcing• Flash networks• Dedicated advocates• Situation awareness• Predictive hotspotting

Chapter 6 90

Incentives• Self-interest• Getting to the core need• Create appealing non-monetary incentives

Chapter 6 91

Non-monetary incentives• Recognition • Access• Impact

Chapter 6 92

Frictionless experiences• Eliminate barriers• Customer focused• Purpose built

93Chapter 6

Freemium“Freemium is the inverse of the traditional free sample.Instead of giving away 1% of your product to sell 99%, you give away 99% of your product to sell 1%. The reason this makes sense is that for digital products, where the marginal cost is close to zero, the 99% costs you little and allows you to reach a huge market. So the 1% you convert is 1% of a big number” Chris Anderson

94Chapter 6

Freemium

95Chapter 6

Paywall

96Chapter 6

Free?

97Chapter 6

Co-Innovation & Co-Creation in the Platform

• General Electric• Industrial Internet Consortium• Accenture, Deloitte, IBM, Tech Mahindra, Fujitsu, Mitsubishi

Electric, Toshiba• Predictivity Solutions - $1 billion

98Chapter 7

LIVING AND WORKING IN AN ERA OF DIGITAL BUSINESS

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99Chapter 7

5 steps…D Management Index 2013/2014

1. Design new experiences and business models that reflect brand authenticity

2. Develop and nurture a culture of digital DNA3. Apply new technologies to existing infrastructure4. Move from gut-driven decisions to data-driven ones5. Attract new partners to co-create and co-innovate on their

platforms

Chapter 7 100

1. Design new experiences…• From products and services to outcomes and experiences• Reinforcing brand promise• Apply concepts in design thinking from the beginning• Mass personalisation at scale• Augmenting humanity

Chapter 7 101

2. Culture of digital DNA…• Strong leaders who are unafraid• Develop digital artisans • Create diversity in thinking• Understand organisational and individual proficiency

Chapter 7 102

3. New technologies, existing infrastructure…

1. Brand authenticity remains paramount2. Right-time contextual relevancy drives engagement3. Probabilistic business processes enable personalised journeys4. Augmented humanity improves decisions5. Access vs ownership of information changes design points6. Engagement driven by self-interest creates frictionless value

exchange7. Digital business models provide new opportunities8. Networked ecosystems deliver digital scale

in the market

103Chapter 7

4. Data-driven decisions…• Right-time contextual relevancy• Learn to ask the right questions• Eye towards the future

104Chapter 7

5. Co-create and co-innovate…D Management Index 2013/2014

• Ecosystem of collaboration• Realise what you’re not going to do• Partner on different levels

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“…digitally transformed organisations do differentiate themselves with higher margins, greater market share, increased brand relevancy and massive scale. And this is where we want to go as we live and work in this era of digital business”

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Thank you

Photo credits: Flickr; Wikipedia: "Internet map 1024" by The Opte Project - Originally from the English Wikipedia; description page is/was here.. Licensed under CC BY 2.5 via Wikimedia Commons; Pexels.com; Pixabay.com; "Coase scan 11 edited" by University of Chicago Law School - Coase-Sandor Institute for Law and Economics, University of Chicago Law School. Licensed under Attribution via Wikimedia Commons; Constellation Research; Flickr