Disrupting Digital Business: Ready for the Post-Sale, On-Demand, Attention Economy?
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Transcript of Disrupting Digital Business: Ready for the Post-Sale, On-Demand, Attention Economy?
1© 2010-2015 Constellation Research, Inc. All rights reserved.
Disrupting Digital BusinessCreate an Authentic Experience In The P2P EconomyFALL 201 5 - 2 016
R “ RAY ” WAN G (@RWA N G0)
PR IN CI PA L A NA LYST & CHA IRMAN
@rwang0 #DisruptingDigital
2© 2010-2015 Constellation Research, Inc. All rights reserved.
52% of the Fortune 500 firms since 2000 are gone
3© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Digital creates winner takes all marketsOverall Market Share Percentage of Profits
4© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
”Welcome to the post-sale, on-demand, attention economy!" (2014) @rwang0
5© 2010-2015 Constellation Research, Inc. All rights reserved.
Disrupt Or Be Disrupted
@rwang0 #DisruptingDigital
6© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Incremental innovation is table stakes and expected in the market
7© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
The middle is a bad place to be in digital
8© 2010-2015 Constellation Research, Inc. All rights reserved.
10 Lessons Learned From Disrupting Digital
@rwang0 #DisruptingDigital
9© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Digital disruption is more than just a technology shift. It’s about transforming business models and how we engage.
1
10© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Tech convergence powers digital disruption
Mobile Social Cloud Big Data IOT
3D Printin
g
Design Thinking Inspired User Experience
11© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Social creates new verbs and experiences that bring people and networks together
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
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?
What’s app – I told you I pee’d
Periscope– Watch me pee live
12© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital #WLE2015Barcelona
But this is so 2009…
Mobile Social Cloud Big Data Unified Comms
Design Thinking Inspired User Experience
13© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital #WLE2015Barcelona
Disruptive tech trends have advanced to
IOT 3D Printing Robotics
AI/ Synaptic Neural
Networks
Block Chain Tech
Design Thinking Inspired User Experience
14© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Uber incorporates five key pillars
15© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
We move from selling products and services to keeping brand promises in an attention economy.
2
16© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Digital accelerates business model transformation• 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.
17© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
"You're not competing with another company, you're really competing for time and attention" (2010)
18© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
New unit cost pricing models enable disruptive business models to thrive.
3
19© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
From all you can drink…. to by the sip
20© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Data is the foundation of digital business. Every touch point, every click, every digital exhaust is relevant insight.
4
21© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Data and content explosion goes exponential
90% of data created in last 2 years 2014, 1 year 2015,
1 sec 2020
80 Billion sensors in devices by
2020
100M viral connections
per minute by 2020
22© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
If 20 % of your revenue is not an insight stream by 2020, you won’t have a digital biz model
5
23© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
The future is big data business models built on insight
Insight based differentiation
Drive demand
Create new service offerings
Improve c-sat
Drive lower cost models
Insight brokering
Raw information
Analysis and insights
Benchmarking
Insight based business platforms
Marketplaces
Deal making
Advertising
24© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
You can be the content, the network and the arms dealer. Today’s digital winners vertically integrate all three in network economies.
6
25© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Four companies control the network from content and commerce to consumer device
26© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
VS.Videos
VS. ShippingVS.Commerce
Cloud Computing
VS.
MediaVS.Devices
VS.
27© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Digital artisans emerge to humanize digital across the organization
7
28© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
GE Power knows when a transmission line will go down 8 to 10 days before it happens
29© 2010-2015 Constellation Research, Inc. All rights reserved.
“Design thinking is a methodology to unlock solutions to questions you never would have asked”
@rwang0 #DisruptingDigital
30© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
People to people (P2P) is about direct connections and digital scale
8
31© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Tesla changed the rules of low volume production, eco luxury & direct to consumer
VS.
32© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Design for people segments of one
9
33© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Can you support a human segment of one and deliver on mass personalization at scale?
34© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Digital delivers on mass personalization at scale
Analog Systems
Pre 1950’s
Reliability and scalability
Massive machine scale
Sweat based
Limited
Governed
Physical locations
Word of mouth
Dumb devices
Assembly line technologies
Elements
Circa
Design point
Challenge
User Exp
Comm Style
Speed
Impact and reach
Info mgmt
Intelligence
Examples
Transactional Systems
1950s+
Continuous improvement
Massive computing scale
Computing based
Broadcast dictatorial
Just in time
Departmental/ corporate silos
Highly structured
Hard coded
Payroll, ERP, CRM
EngagementSystems
2000+
Sense and respond
Massive social scale
Interactive
Conversational
Real time
Interconnected
Loosely structured knowledge
Deterministic business rules
Social and collaboration
Mass Personalized
Systems2015+
Intention driven
Massive individual scale
Personalized
Sentient
Space time contiuum
P2P networksSelf aware embedded
knowledgePredictive
Decision support, VRM
ExperientialSystems
2010+
Agile and flexible
Massive contextual scale
Bionic
Role tailored
Right time
Segmented value chains
Immersive streams
Probabilistic pattern based
Ad networks, gamification
35© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Five generations of people by digital proficiency, not age
10
36© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
5 generations of digital people not by age but by digital proficiency
Digital Proficiency
1. Digital Natives
comfortable in engaging all digital channels 2. Digital
Immigrantscrossed the chasm into the digital world, forced into engagement with digital channels
3. Digital Voyeurs
Recognize the shift to digital but not ready to be active yet themselves
4. Digital Holdouts
Resisting the shift to digital, ignoring the impact
5. DigitallyDisengaged
Understand digital but avoiding
engagement on purpose, often for
privacy reasons
37© 2010-2015 Constellation Research, Inc. All rights reserved.
Disrupting Digital Business
@rwang0 #DisruptingDigital
38© 2010-2015 Constellation Research, Inc. All rights reserved.
“Digital Darwinism is unkind to those who wait” 2010 (@rwang0)
@rwang0 #DisruptingDigital
39© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
The reality of how we allocate is set up for margin
Brand
Strategic differentiation
Revenue growth
Operational efficiency
Regulatory compliance
40© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Growth requires the flip in the pyramidBrand
Strategic differentiation
Revenue growth
Operational efficiency
Regulatory compliance
41© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
In the new world IT – business collaboration is key to digital success
Simple
Scalable
SexyBusin
ess N
eeds
IT R
equi
rem
entsSafe
Secure
Sustainable
BusinessModels
Geos
Value Networks
Org Structures
Disruptive Technology
42© 2010-2015 Constellation Research, Inc. All rights reserved. @rwang0 #DisruptingDigital
Business runs hard as IT scales in step function
Time
Rate
of I
nnov
ation
Business requirements
IT scaling
Wave 1 Wave 2 Wave 3 Wave 4 Wave 5
© 2010-2015 Constellation Research, Inc. All rights reserved. 43@rwang0 #DisruptingDigital
Five steps from data to decisions to digital
Design new experiences and outcomes
Develop a culture of digital DNA
Apply new business models and technologies to existing infrastructure
Move from gut to data driven decisions with planning, consolidation, and control
Co-create and co-innovate with new partners
44© 2010-2015 Constellation Research, Inc. All rights reserved.
Join me and other innovators at
Join me and other innovators atConstellation’sConnected EnterpriseThe Ritz Carlton, Half Moon Bay, CA | October 26-28, 2016 |
www.constellationevents.com
© 2010-2015 Constellation Research, Inc. All rights reserved.
R “Ray” [email protected]@rwang0www.raywang.orgwww.ConstellationR.com
Thank you. Any questions?
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