Gartner Keynote: Shift to ContinuousNext...Cloud Computing Devices VPA & AI IoT Automotive Retail...

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Valentin Sribar

Gartner Keynote: Shift to ContinuousNext

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2013

Nexus of Forces


2014 2015 2016 2017

Digital Business Bimodal Algorithms Digital Platform

Physical/Virtual

Things (IoT)Organizational

Evolution

Artificial

IntelligenceIT Systems, Customers,

Things, Ecosystems,

Intelligence


Digital Platform


Transforming

Productsand Services

People(Workforce)

CustomerExperience

Assets andOperations


2014 2015 2016 2017 2018

Digital Business Bimodal Algorithms Digital Platform ContinuousNext

Physical/Virtual

Things (IoT)Organizational

Evolution

Artificial

IntelligenceIT Systems, Customers,

Things, Ecosystems,

Intelligence


2019?


Uncertainty Is All We Can Predict


Speed and

Acceleration

Define Success


Business Model Change Is Accelerating

Change in Customer Base 79%

Change to the Value Proposition 80%

80%Change in Capabilities

78%Change to the Profit Model

Gartner 2018 CEO Survey: Base: Likely to make changes, n = 290

Question: What degree of change do you expect in each of the aspects of your business model?


Make Your Current Ecosystem Better


Make Your Current Ecosystem Better

subscribers

are new

customers

50%42%

growth

in market

cap. YoY

15 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.15 © 2019 Gartner, Inc. and/or its affiliates. All rights reserved.

Competition – Digital Dragons


Example: The Amazon Ecosystem

Digital Commerce (Core)

Digital Media and Entertainment Financial Services

Logistics and Fulfillment

Customer Insights and Mkt.

Retail Wholesale International/Cross-Border

Film and Video Entertainment Digital Media

Travel & Ticketing

Healthcare

Payment Banking

Food General Merch

Technology

Investment

Cloud Computing VPA & AI IoTDevices

Automotive

Retail

Amazon AI Services

Beijing Century Joyo Courier Services

Amazon Lending

Joint venture with Citi and Berkshire Hathaway

Investments in Indian Fintechs

* Not fully comprehensive


Example: The Alibaba Ecosystem * Not fully comprehensive

Digital Commerce (Core)

Digital Media and Entertainment Financial Services

Logistics and Fulfillment

Customer Insights and Mkt.

Retail (China)Wholesale

(China domestic) International/Cross-Border

Film and Video Entertainment Digital Media

Travel & Ticketing

Healthcare

Payment Banking

Food Delivery General Merch

Technology

Investment

Cloud Computing VPA & AI IoTDevices

Blockchain

Automotive

Banma Technologies

Retail

Brand Databank

Jiebei

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72 hours

24 hours

4 hours

0.5 hours

Alibaba anywhere in world

Alibaba anywhere in China

Amazon U.S. Major Cities

Alibaba New Retail within city

Speed of Delivery

1 to 2 hours Amazon Prime Now within city


First Help Merchants and Customers, Then Expand

At first Alibaba created Alipay to make

e-commerce work. Credit followed

This created the basis for continued

expansion into other regions and

industries (esp. Fin Svcs)

Amazon slower to move to payment

because it operates in mature market

Now Amazon Lending helps merchants.

Also investment in Indian fintechs


Commerce channel

Logistics enabler

Sales

Logistics

Leverage Their Capabilities

Suggested

Opportunity

Level:

High

Med to Low

Technology

Cloud, storage, analytics, AI

VPA/Conversational interface

Marketing

Customer data and insight

Media and advertising channel

Fin Svc

Payment

Credit/Risk scorer


http://www.pingan.cn/en/about/corporate-architecture.shtml

Insurance Banking Investment

Ping An Life

Ping An P&C

Ping An Annuity

Ping An Health

Zhong An

Ping An Bank

Ping An Trust

Ping An Securities

Ping An Asset Mgmt

Ping An Fund

Ping An Financial Leasing

Ping An Good Doctor, Lufax, Puhui Financial, Finance One Account,

Pinganfang, Wanjia Healthcare, Ping An Healthcare Management, E-wallet,

Ping An Technology, Ping An Finserve, AutohomeAutohome: +25

mio daily

visitors

Zhong An: +150

mio customers

and +650 mio

policies

Pinganfang:

China’s largest online

property platform

Lufax: P2P asset

exchange, + 21

million users

Ping An Bank:

+ 36 million assets

and 400 billion

USD in AUM

Ping An Good

Doctor: + 21

million users

OneConnect: 8

billion USD IPO

planned

Rise of Digital Dragons: Ping An‘s Ecosystem


Speed

Acceleration

Connectivity


We must embrace these forces

and turn them to our advantage


Digital Product

Management

Culture

Privacy

Digital

Twin

Augmented

Intelligence

LOWEST

HIGHEST

Source: Gartner Iconoculture Values and Lifestyles Survey, 2017

PRIVACY ranks

higher than

CONVENIENCE

#49

#33

#22

#20

Convenience

Security

Safety

Serenity

In companies that have NOT USED AI, employees believe it

will eliminate jobs

77% 23%

Believe that AI will decrease jobs

Believe AI will increase jobs

Source: 2018 Gartner Artificial Intelligence Enterprise Perceptions, Plans and Implementation

16% 57% Report no change

Report job increases

Report job decreases

26%

But in companies which DO USE AI,

most report little impact on jobsSource: 2018 Gartner Artificial Intelligence Enterprise Perceptions, Plans and Implementation

Source: Gartner 2019 Top Predicts

PREDICTS

By 2022, 60% of effort in AI development

will be spent on machine training

rather than the development models

from data scientists

60%

#ChooseYourAITeachersWell

Digital Twin


ContinuousNext formula for results …

Mindsets Practices Technology+( ) x


Base: n=185, Gartner Research Circle Members, excluding Don’t Know answers

Q02. What proportion of your organization’s [planned] development is based on each of the following methodologies?

Iterative12%

Lean IT3%

Waterfall39%

Other1%

Mean Proportion Shown

Development Methodology Used on Average Agile

45%


Mindsets Practices+( ) Technologyx


Design Culture


How

we make

decisions

How we

engage

How we

measure

How we

work

Culture

Design


Change Mindsets and Practices


We stopped referring to our

business units as customers,

and started referring to them as

partners.

“ “


We have short IT leadership

stand up meetings every day,

borrowing an agile development

technique.

“ “


We canceled projects that

no longer meet our

strategic direction.

“ “


Processes

Meetings

Projects

Capabilities

Teams

Products



Your Ecosystem


Extend or Create Product and Service Set

KabbageSmall

Business

New LoanProduct

Square

PayPal

Sage

eBay

Intuit QuickBooks

Scotiabank

Santander Bank


Customer


Before:Get a Mortgage

Get a

Mortgage

Home

Buyer

ING

Goods

Service

Data

Money

Enterprise

Customer

Prospect

Partner

Problem

Customer needs connections

with many different players.

Bank is only one small part.


After:Buy a Home

Realtors

Insurers

Get a

Mortgage

Get a

InsuranceShop for a

Home

Get

Financing for

Remodeling

Home

Buyer

ING

Banks

Matching

Platform

Home Owners

Goods

Service

Data

Money

Enterprise

Customer

Prospect

Partner

Outcome

Less friction for customers.

New bank revenue.

PartnersCustomers Value Propositions


How IKEA Customers Changed IKEA Culture

“We’ve gone

from being afraid

of hacking to

embracing it.

Now we love it.”



Use Technology


Robotic Tech Vest

+


Technologies change mindset & practices

Q. Which technology area do you expect will be a game changer for your organization? Coded open text responses. Multiple responses allowed.

Base: Top Performers, excluding “prefer not to answer”, n = 230

Percentage of Top Performers

40%23%

Analytics Cloud

12%


+


Spotify


Digital Product Management is the

Next model for IT Value Delivery


75%Top Performers Have

Implemented Digital

Product Management


Mindsets Practices Outcomes

& Measures

Digital Product Management


From inside out to outside in

Focus on customer value

Continuous value lifecycle

Mindsets


Design thinking

Agile engagement

Continuous enhancement

Practices


Design thinking

Agile engagement

Continuous enhancement

Outcomes

& Measures


(Mindsets + Practices) x Technology


Avoid the pitfallsof digital product management

Products become our children

We fall in love with features

We want our products to live forever


Speed,

Uncertainty,

Interconnectivity

Mindsets,

Practices,

Technology

Digital Product

Management


We can’t change the forces

of our environment. We

must adjust our leadership.

Culture hacks are small steps

that make a big difference

46% of CIOs reported culture is their biggest barrier

46%

Source: Gartner, The 2018 CIO Agenda: Mastering the New job of the CIO

10 Culture Hacks

Celebrate failure2

All meetings support new strategy1

48-hour decision rule3

Reward decisions4

“Let it go” workshops5

Invite hard questions6

Don’t have all the answers7

Cancel status meetings8

Innovator as CEO9

Run a culture hackathon10

We Are Technical Beings …

Prometheus


we

ourtechnology

Gartner Keynote: Shift to ContinuousNext...Cloud Computing Devices VPA & AI IoT Automotive Retail...

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