Every Consumer is a Business User

Challenges and Opportunities on Innovation in the Fast Changing Consumer Driven Enterprise

Michael Kogeler

General Manager

Microsoft Consumer and Online

www.microsoft.be

So, who is Michael Kogeler ?

Michael Kogeler

General Manager

Microsoft Consumer and Online

Mail - mkogeler@microsoft.com

Blog - www.kogeler.com

Messenger – michaelkogeler@hotmail.com

Prive Mail - michael@kogeler.com

Twitter – #mkogeler

MAIN PRESENTATION

Your single moment of attention the next 45 minutes....

(and your first lesson learned for today)

Intensity of

audience

attention

(meaning you

are still awake)

Presentation time

(or my overload of slides)

Your Single “Pay

Attention” Moment Of

Today

Slide 46Slide 1

(SENIOR) EXECS ARE WILLING TO ACCEPT THE FACT THAT THEIR ORGANISATIONS ARE BUILT FOR PERPETUATION RATHER THAN FOR INNOVATION.

BUT IN A DISCONTINIOUS WORLD, WE NEED TO TURN DOWN THE DIAL A BIT ON PERPETUATION AND TURN UP THE DIAL ON INNOVATION.

Gary Hamel

DADDY, WHAT DID YOU DO DURING THE ECONOMIC RECESSION ?

I LOVE THE SMELL OF SECURE EMPLOYMENT AND A GARANTUEED PENSION IN THE MORNING….

The Current Economy

Economic “Reset”

Less debt, more innovation and productivity

Optimistic about the future

“Because the purpose of business is to create a customer, a business has two – and only two – basic functions:

Marketing and Innovation.”Peter Drucker

Top CIO Challenges in 2009

1. Business Process Improvements

2. Reducing Enterprise Costs

3. Improving Enterprise Workforce Effectiveness

53%

46%

Source: Gartner CIO Survey 2009

43%

Innovation ?

IT Complexity... Pull stick up, Plane goes up, Push stick down, Plane does down.

The buttons ? They’re there to impress the chicks. Chicks are complex.

3 major disruptions on the Horizon or around the Corner....

• From old economy to new economy

• From vision to action

• The war for talent

Disruptions on the horizon and around the corner

Part 1 - from old economy to new economy

• The world is flat

• Econoshock

• The long tail

Some see it coming since 2004...

Econoshock

• Schok 1 - Demografie

• Schok 2 - Het zwaartepunt verschuift naar het Oosten

• Schok 3 - Informatie- en communicatietechnologie

• Schok 4 - Het einde van fossiele brandstoffen

• Schok 5 - Het nieuwe kapitalisme

• Schok 6 - De groene economie

Connected value chain in the old economy

ISO 9000 Certified

Business expansion in the old economy...

ISO 9000 Certified

ISO 9000 Certified

ISO 9000 Certified

ISO 9000 Certified

ISO 9000 Certified

ISO 9000 Certified

ISO 9000 Certified

ISO 9000 Certified

ISO 9000 Certified

Business expansion in the new global economy...

Disconnected value chains in the new global economy...

The long tail

20 %

From - Sell more of less

To - Sell less of more

Niche Level

Volume

What’s so special about this car?

Huh ? Do I drive a BMW ?

So, what’s so special about this car?

Challenging an (your?) industry

Disruptions on the horizon or around the corner...

Part 2 - from vision to action

The Knowledge Gap

Exploration of the knowledge gap

“The task is not so much

to see what no one yet has seen,

But to think what nobody has yet thought

about that which everyone sees”

Schopenhauer

To maintain a competitive advantage…

Team

Division

Enterprise

Individual

Extranet

Internet

…we will have to

collaborate with

colleagues down the

corridor or around

the world as natural as

working alone to bridge the

knowledge gap

Innovation @ P&G <> R&D?

The Power of Social Media A little story…

Social Media InnovationMicrosoft LookingGlass

• A proof-of concept business tool that harnesses the

power of the Microsoft platform to make social media

data actionable.

• Listen to, participate in, and analyze social media.

• Partners can build on top of it to add their insight and

information for their clients.

• Businesses can overlay sales and support data and

other key business information to finally start to

understand the ROI of participating in social media.

LookingGlass – Social Marketing Dashboard

Video

Disruptions on the horizon or around the corner...

Part 3 - the war for talent

• ”1984”

“1984”

• George Orwell – 1984• Winston Smith, a functionary at the Ministry of Truth, whose work consists of editing

historical accounts to fit the government's policies. Big Brother is watching you!

• Launch of the Macintosh and Windows 1.0

• The end of the C:\DOS\>_ blinking prompt or character based input

• The beginning of the Consumerization of the PC

• Digital natives - people born >1984 have always had computers and internet in their lives

More to come - life of a 12-24…

Will never read a newspaper but attracted to some (online) magazines

Will never own a land-line phone (and maybe not a watch)

Will not watch television on someone else’s schedule much longer

Trust unknown peers more than experts

For first time willing to pay for digital content. Never before

Little interest in the source of information and most information aggregated

Community at the center of Internet experience

Want everything to move to mobile

Television dominates less than any generation before

Want to move content freely from platform to platform with no restrictions

Want to be heard (user generated content)

Use IM. Think e-mail is for their parents

Digital natives...

• They work differently – your kids and yourself

• They escalate a chat to a call to a video call with one click – they use technology

• They communicate across the globe as seamless as across the table – they collaborate

• When they type 3 words in Bing or Google they find more information then they can handle – on any topic!

• Compare and contrast with what is happening in your companies – it is there today

Are we (you) imposing them to be ineffecient?

Digital Natives Are Coming. Fast.

• They are entering (y)our companies

• In 3-5 years they will be running (y)our companies

• Will they bring in a mind set change?

Where I want it...When I want it...How I want it...

Generation Y....No problem....If only they were abundantly available....

Demographic overview Belgian Population

...but they are a

rare commodity

The real war for talent

It’s not about finding the right

people any more...

It’s about getting them to join your

company...

Organization structures need to change…

Traditionals Boomers Xers Yers

Business

process

Organizational

shape

Workplace

Technology

1928 2000+

(re)Think

Location

Mentality Technology

Location - (re)Design

In the “office”

Virtual

Physical

Alone Together

Anywhere

Anytime @ Any

Device

Microsoft Workstyles

LOW mobility

M1

M2

M3

M4

PROVIDER - Microsoft’s most desk-centered employees, fulfilling administrative

functions that support a team. They include administrators, administrative management

and billing account coordinators.

CONCENTRATOR - generative employees who produce code, create content, conduct

research. They require solitary desk time more than mobility and tend to work in close

knit, as opposed to distributed, teams. They include developers, designers, testers and

researchers.

ORCHESTRATOR - internally mobile and highly collaborative, often

interfacing with several different teams in the course of a given project.

They include lead engineers, product managers, marketing managers and

project managers.

TRAVELER - externally mobile and immersed in

collaboration. Their jobs require travel and virtual

conferencing. They include executives, senior

mangers, evangelists and consultants.

HIGH mobility

Technology - (re)LearnVirtual

Fysical

Alone Together

Future Of Work – Microsoft Research

Video

Mentality – (re)FocusPeople Drive Business Outcomes

Communicate

effortlessly

Work

anywhere

Innovate

collectively

Personalize

environment

Mentality – (re)FocusEnabling Information Workers

Emerging Technology TrendsWhat’s next….

What's next now ?

What's Now ?Is already deployed at your company today… Big time.

Tags Rating

Widgets

Content

Collaborative Filtering

Aggregation

Demo/Video – BMW Car Configurator

Surface

The Microsoft Platform (Now )

Active Directory AD/Live ID

CLIENT

THERE IS MORE THAN ENOUGH CONFUSION AND AMBIGUITY TO WORK WITH IN THIS WORLD.

WE DON’T HAVE TO WORRY ABOUT CREATING MORE, ONLY ABOUT HOW TO WORK MORE ARTFULLY WITH WHAT WE ALREADY HAVE !

Gary Hamel

10 tips for a successful marriage…

1. Show love, every minute of the day

2. Don’t nag at each other

3. Respect your partner 24/7

4. Resolve fights in time

5. Communicate and be honest

6. Be faithful and show believe in the two of you

7. Compromise is key to success

8. Take a break now and then

9. Special days should be celebrated

10. Do not underestimate your partner

TALK DOESN’T COOK RICE

Old Chinese Proverb & Michael’s Favorite Saying

Thank You.

Discussion Time....

Michael Kogeler

General Manager

Microsoft Consumer and Online

mkogeler@microsoft.com

www.kogeler.com

michael@kogeler.com

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Is your IT Ready for What's Next?D

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Looking Ahead