Beating Schumpeter: Keynote at IBM Profession Day

BEATING SCHUMPETER

Keynote @IBM Profession Day Zurich, 2015.05.22 Jasper Bouwsma Founder & CEO, Vujàdé Ltd.

SCHUMPETER’S CREATIVE DESTRUCTIONSCHÖPFERISCHE ZERSTÖRUNG

http://en.wikipedia.org/wiki/Schumpeter

The process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one. Joseph Schumpeter Austrian Economist (1883–1950)

Vujàdé Vujàdé is looking for new solutions. Critically questioning existing structures and behavior. Looking at something from a different or an unusual point of view. In other words, Vujàdé stands for innovation.

Picture: CC Vujàdé

Innovation Support •  Consulting •  Training •  Co-Creation

JOINING THE ENDEAVORHOW WE WORK

Jungle Guides Expedition Members Sherpas

SHAKEN NOT STIRRED HOW WE THINK

Design Thinking Stage Gate

TRANSVERSAL WHO WE WORK FOR

•  Size From Startup to Multinational and everything in between

•  Geography From Switzerland to Sweden and New York to Berlin

•  Industries From Life-sciences to Fashion and Food to Insurances

TEAMA BUNCH OF THINKER-DOERS

Jasper Bouwmsa Founder & CEO � Strategy � Innovation � Incubation � BMGen

John Forslund Associate Partner � Apps & Services � Go-to-Market � Mobile � User experience

Judith Wimmer Senior Consultant � Organizational development � Design � Customer experience � Process design

Eric Kuenzi Co-Founder Vujàdé Law � Legal � Startup � Serial entrepreneur

JASPER BOUWSMAFOUNDER & CEO

Jasper is a true entrepreneur. After his career as Head of Incubation at Swiss national tele- communications provider Swisscom he founded Vujàdé in 2008, established Vujadé Law with Eric Kuenzi in 2014 and is co-founder of attrackting AG, a startup developing tracking solutions. Through the combination of startup and corporate activities, Jasper has a unique insight in innovation, the success factors and typical reasons for failure. [email protected] +41 79 308 37 93

Pictures: CC Vujàdé

AGENDA

Exponential Economy a.k.a. Shift Happens 01

Let’s Play Schumpeter 02

Sherlock investigates 03

Design Thinking & Business Modeling

AGENDA


The beginning of the … .1

Hockey-sticks & S-curves .2

Some examples… .3




EARTH’S BIGGEST BOOKSTORE JEFF BEZOS STARTED AMAZON IN 1994

MY GRANDMOTHER WAS AMAZED BY TELEVISIONI WAS REVOLUTIONIZED BY THE INTERNET




Some examples… .3




AGENDA

More Moore

www.wired.com/2015/04/50-years-moores-law-still-pushes-tech-double

In exponential times, if you improve your performance incrementally you fall behind exponentially. Curt Carlson, CEO SRI International

GLOBAL EXPONENTIAL CHANGEFOR GOOD AND FOR BAD

The New Scientist

Temperature (northern half) Population CO2 concentration Loss of rainforest GDP Water use

Species extinctions Paper consumption Motor vehicles Fisheries exploited Ozone depletion Foreign Investment

EXPONENTIAL INCREASE IN INFORMATION

EXPONENTIAL INCREASE IN APPS

We adopt products quicker as well

BELL SHAPED ADOPTION

13.5% Early Adopters

2.5% Innovators

34% Early Majority

34% Late Majority

16% Laggards

BELL SHAPED ADOPTION EQUALS S-SHAPED DIFFUSION

100%

0%

Mar

ket

Shar

e

13.5% Early Adopters

2.5% Innovators

34% Early Majority

34% Late Majority

16% Laggards

ACCELERATED DIFFUSIONSOCIETY IS ADOPTING TECHNOLOGY FASTER

https://hbr.org/2013/11/the-pace-of-technology-adoption-is-speeding-up/

FACEBOOK1 BILLION PEOPLE WITHIN 8 YEARS

AGENDA




Some examples… .3




30 YEARS OF MUSIC INDUSTRY UPHEAVAL

www.huffingtonpost.com/2014/08/22/music-industry-shift-gif_n_5697945.html

1983 2013 2003 1993

Vinyl Single 7.1%

CD 0.5%

LP/EP 44.6%

Cassette 47.8%

Vinyl Single

0.5%

CD

64.8%

LP/EP

0.1%

Cassette

29.0%

Cassette Single 3.0%

Music Video

2.1% CD Single

0.5% Vinyl Single

0.2%

CD

95.5%

Cassette 1.7% Music Video

2.3%

CD Single

0.2%

DVD Audio

0.1%

LP/EP

0.2%

CD 30.4%

Synchronization 2.7%

Download Music Video

0.2%

Download Album 17.6%

Ringtones & Ringbacks

1.4%

SoundExchange Distributions

8.4%

Music Video 1.5%

LP/EP 0.3%

Paid Subscriptions 9.0%

On-Demand Streaming 2.9%

Kiosk 0.1%

Download Single 22.4%

2007

The Swiss Federal Council accepted on the eHealth Strategy on June 27th, 2007.

“eHealth must provide the Swiss population access to an efficient, secure, as well as cost-efficient healthcare.”

2013

The Swiss parliament accepted the electronic patient file as part of the e-health strategy on May 29th, 2013.

Der Bundesrat Le Conseil fédéral Il Consiglio federale Il Cussegl federal

1/2

Medienmitteilung Datum 29.05.2013 Sperrfrist: Bis zum Beginn der Medienkonferenz

Elektronische Patientendossiers sollen die Qualität und die Sicherheit von medizinischen Behandlungen verbessern Jede Person in der Schweiz soll in Zukunft die Möglichkeit erhalten, ihre medizinischen Daten über ein elektronisches Patientendossier medizinischen Fachpersonen zugänglich zu machen. Die Daten stehen so zu jeder Zeit und überall zur Verfügung. Damit können die Patientinnen und Patienten in besserer Qualität, sicherer und effizienter behandelt werden. Der Bundesrat hat heute den entsprechenden Gesetzesentwurf verabschiedet und an das Parlament überwiesen. Mit seiner Strategie Gesundheit2020 will der Bundesrat die Versorgungsqualität im Gesundheitsbereich erhöhen. Ein wesentliches Element der Strategie ist die Förderung elektronischer Gesundheitsdienste („eHealth“) und insbesondere des elektronischen Patientendossiers. Das neue Bundesgesetz über das elektronische Patientendossier (EPDG) legt die rechtlichen Voraussetzungen fest, unter denen die im elektronischen Patientendossier enthaltenen medizinischen Daten bearbeitet werden können. Das elektronische Patientendossier ermöglicht allen an einer Behandlung Beteiligten einen von Ort und Zeit unabhängigen Zugang zu medizinischen Informationen. Einsicht in die Daten haben jedoch nur diejenigen Gesundheitsfachpersonen, die von ihren Patientinnen und Patienten die entsprechenden Zugriffsrechte erhalten haben. Über das elektronische Patientendossier können Patientinnen und Patienten zudem ihre eigenen medizinischen Daten selber konsultieren. Die Patientinnen und Patienten entscheiden selber, ob sie ein elektronisches Patientendossier wollen oder nicht. Es kann niemand dazu verpflichtet werden. Die Freiwilligkeit des Erstellens eines elektronischen Patientendossiers gilt auch für die Gesundheitsfachpersonen im ambulanten Bereich.

AGENDA


Nokia vs. IBM .1

Facing Schumpeter .2

The Red Queen principle

.3


Beating Schumpeter 02


No one has to change. Survival is optional. Edward Deming (1900–1999) American statistician, professor, author, lecturer, and consultant

Creative Destruction

http://iliketowastemytime.com/2012/08/08/deepwater-horizons-final-hours-7-pics

www-03.ibm.com/ibm/history/ibm100/us/en/icons/

AGENDA


Nokia vs. IBM .1



.3




OUR DEFINITON OF INNOVATION

An applied idea that meets customers’ needs and proofs it’s economic viability in the market.

TWO INNOVATION ARCHETYPES

Incremental

Radical

88%

Realized ideas (888/999)

Realized ideas (2/99)

2%

TWO INNOVATION ARCHETYPES

Incremental

Radical

THREE NON-EXCLUSIVE TARGETS WITH INDIVIDUAL JOURNEYS

3

2

1

Aim to radically change your business with considerable top- and bottom-line impact.

Aim to linearly grow your business by x% p.a.

Aim to keep your current level of operation.

The path if you do not do anything. “You might hate gravity

but gravity doesn’t care.”

AGENDA


Nokia vs. IBM .1



.3




THE RED QUEENYOU HAVE TO RUN AT LEAST TWICE AS FAST

“Well, in our country,” said Alice, still panting a little, “you’d generally get to somewhere else—if you run very fast for a long time, as we've been doing.” “A slow sort of country!” said the Queen. “Now, here, you see, it takes all the running you can do, to keep in the same place. If you want to get somewhere else, you must run at least twice as fast as that!”

The world is flat The world is fast

http://en.wikipedia.org/wiki/Rita_Gunther_McGrath

You may hate gravity, but gravity doesn't care. Clayton Christensen, Harvard Professor & Author

Which brings us back to the famous apple…


AGENDA


Sherlock Investigation 03

Health .1

Food .2

Environment .3


Modern Revolutions

GENERAL ELECTRIC HAS INTRODUCED THE CONCEPT OF THE INDUSTRIAL INTERNET

CISCO HAS INTRODUCED THE CONCEPT OF THE INTERNET OF EVERYTHING

MR. WATSON… COME HERE! SAID ALEXANDER GRAHAM BELL ON 1876.03.10

www.loc.gov/exhibits/treasures/trr002.html

Thomas John Watson, Chairman and CEO of IBM 1914-1956

Creative Destruction

Let’s imagine a complete new world Health Food Environment

AGENDA




Health .1

Food .2

Environment .3


Our life expectation has doubled since 1840 and is further increasing by 5 hours – each day

Warning Social health Tsunami approaching

Dementia

DIABETESPREVALENCE OF DIABETES WORLDWIDE IN 2000 (PER 1,000 INHABITANTS) - WORLD AVERAGE WAS 2.8%

NUMBER OF CHRONIC DECEASES BY AGE GROUPBY THE TIME WE PENSION 75% HAVE UP TO 8 DECEASES

3d medical imaging

www.nytimes.com/2013/05/14/opinion/my-medical-choice.html

My medical choice (1712 comments)

Craig Federighi, Apple SVP Software Engineering, announding Apple’s HealthKit

https://sites.google.com/site/quantifiedself777/

http://zerotoonebook.com/about/

Eroom’s law—that’s Moore’s law backward—observes that the number of new drugs approved per billion dollars spent on R&D has halved every nine years since 1950. Peter Thiel Serial Entrepreneur and Investor

www.ibm.com/smarterplanet/us/en/ibmwatson/watson-oncology.html

AGENDA




Health .1

Food .2

Environment .3


IBM’s Watson Food Truck Brings The Supercomputer To The Kitchen

http://qz.com/156163/a-map-of-all-the-countries-that-contribute-to-a-single-jar-of-nutella/

WHAT IT TAKES TO PUT NUTELLA ON MY PIECE OF BREADVISUALIZING GLOBAL SUPPLY CHAINS

www.oecd-ilibrary.org/trade/mapping-global-value-chains_5k3v1trgnbr4-en

IT IS ESTIMATED THAT 33% OF FOOD PRODUCED IN THE DEVELOPED WORLD IS THROWN AWAY BY CONSUMERS AND RETAILERS

AGENDA




Health .1

Food .2

Environment .3


IT IS ABOUT THE EXISTING AS WELL AS THE NEW

The industrial internet will add USD15 Trillion to global GDP •  USD300B savings in the energy

industry •  USD30B in fuel savings for

Commercial Aviation •  USD63B in system inefficiency

savings for Health Care •  USD27B in system inefficiency for

Retail

Embracing the Internet of Everything To Capture Your Share of USD14.4 Trillion More Relevant, Valuable Connections will Improve Innovation, Productivity, Efficiency & Customer Experience

DATA GENERATED BY AN AIRCRAFT ENGINE GENERATE

http://wikibon.org/wiki/v/Big_Data_in_the_Aviation_Industry

Sharing economy

www.economist.com/news/leaders/21573104-internet-everything-hire-rise-sharing-economy

Source: Pinterest

AGENDA





The world’s largest taxi company owns no vehicles The world’s most popular media owner creates no content The world’s largest accommodation provider owns no real estate The most valuable retailer has no inventory

ALEXANDER OSTERWALDER A SWISS BUSINESS BOOK AUTHOR

www.strategyzer.com

www.strategyzer.com

A business model describes the rationale of how an organization creates, delivers, and captures value. Alexander Osterwalder

Matching people’s needs with what is technologically feasible and viable as a business strategy. Tim Brown, CEO and president IDEO

THE HOLY TRINITYFINDING THE SWEETSPOT

Customer

Technology Business

This is where

you need to be

THE HOLY TRINITYHOWEVER THE FOG MUST CLEAR AS YOU GO

time

http://imgkid.com/roller-coaster-track-side-view.shtml

TWO PERSPECTIVESTHE IDEAS VS. IDEA PORTFOLIO

The Idea The idea portfolio

Pictures: CC Vujàdé

Vujàdé Ltd. – Consulting I Training I Co-Creation Elfenaustrasse 3 I CH-2502 Biel�/�Bienne I Switzerland +�41 32 32 32 300 I contact�@�vujade.com I www.vujade.com

CONTACTTHANK YOU

Beating Schumpeter: Keynote at IBM Profession Day

Business

Transcript of Beating Schumpeter: Keynote at IBM Profession Day