Disruption InnovationTwitter@terrellbjones

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governments www.tbjones.com

Everything is great!

Tremors

“Neither RedBox nor Netflix areeven on our radar screen in

terms of competition”

CEO Blockbuster2008

Peak Employment 60,00010 Years later ZERODISRUPTION!

Leadersare

worried

Are things moving faster?

Telephone took 75 years to reach 50 million users

Pokemon Go took 15 Days! It is a difficult time to be a leader

Speed of change

Information

Overload

Lack of

certainty

Talent

Twitter:Terrellbjones

I can’t take more… What if disruption IS coming?

Cincinnati 1848

Self Driving

Cars

Insurance

Hotels

Parking

RealEstate

Deliveries

Auto Repair

Billboards

Healthcare

Traffic Cops!

Truck Drivers

Do I need a car?

Teen Licenses down >10%

Who is the enemy?

Not Godzilla but… 3,000-4000 Startups per year!

Who & What is likely to disrupt you

What you can

do about it!

`Get slides @

www.tbjones.com

Digital Disruption“Software is eating

the world”

Marc Andreessen

New Tech AND

New Business Models

6 7

3 421

Forces of disruption

1098

5

Mobility7.3 Billion Cell Phones

5 Billion network connected 2 Billion Smart Phones

One Trillion Images Per YearMobile only last minute hotel

App Store Earned $40 BBL

50 Million Apple Watches

Total of over200mm worldwide

of all brands

“The Apple watch is an interesting toy, but it is

not a revolution”Nick Hayek Jr.

Swatch Executive

In 2017 the Apple Watch outsold

the entire Swiss Watch Industry

•20GB speed •Reduced latency

•Internet of skills •High motion mobility •Autonomous vehicles

I.O.T.

125 Billion by 2030

I.O.T. Examples

• Sensor reports to doctor • Doctor orders new prescription • Pharmacy alerts your phone • GPS reminds you on way home • You stop and pay via facial reco

Disney Magic Band• Ticket

• Pay for goods and services

• Photo Pass

• Room Key - Bus Pass

• Track your child

• Cast members say , ‘Hello Terry!’

Carnival Medallion• 7,000 Sensors per ship

• Open your room

• Pay for your drinks, dinner, goods, gambling

• Book and pay for excursions

• Hundreds of thousands of insights per voyage

“Bait to Plate Tracking”

• IOT

• Blockchain

• Image Processing

Machine LearningAnalyticsCloud

IOT Technology Chain

ConnectivitySensors

John Rossman The Amazon Way on IoT

Torrent

Stream

Big Data

2.5 Quintillion bytes daily

Where to put it?Processing Power - Storage Density Processing Cost - Storage Cost

Communication Speed Communication Cost

CloudInstead of our own

Shared

Why is cloud important?

• Instantly available • Infinitely scalable • Insanely inexpensive

Game Changer

It’s why two guys in a startup Have as much computing power as a Fortune 500 company!

Convergenceof

Technologies

Robotics Robotics

Average age of major hotel chain’s housekeeper in hawaii?

RPA (Robotic Process Automation)

Felling & Planting Drones

Drone Financial PredictionDrone Environmental

Protection as a Service

Real Estate

Drug delivery drone Additive Manufacturing

25% of every building by 2030

90% of hearing aids 3D printed

In 4 years!

Computer Vision Selfie Applications for life policies

VR vs AR

Wal-Mart Training VR Roller Coaster

Disruption by algorithmAlgorithms

Very Smart Contracts Using AI & BlockChain

Settlement

Identity

Will we require? Predictive Analytics Predictive Analytics

Predictive Failure Adaptive Diagnostics

Condition Based Maintenance

Big Data

A. I.

Ifdata

is thenew oil

AIis

therefinery

Here Now!

AI is the new UI

How products are sold

A. I. How products are supported How processes are automated

A Combination of AIs Self Driving Here Now

Robot? Drone?

9 Countries that SKIP Constrained resources =

U. S Mars

Mission

$730,000,000 $73,000,000

IndianMars

Mission

“Martian” = $100mm!

Balance of Power

Sellers Buyers

Customers

Sellers

Buyers

Power to the customer

• Geographic barriers eliminated • Price information everywhere • Buyer experiences shared

Gartner

Short circuiting distribution

Crowdsourcing consideration

Consuming endless product info

Want what they Want When they Want it

6 7

3 421

Forces of disruption

1098

5

Change isn’t stopping

IBM stores data on a single atom!

“If you don’t like change, you’re going to like irrelevance even

less.”

Technique

Technologyfollows

New Business Models

owns no vehicles

develops no content

has no inventory

owns no real estate

Tom GoodwinTechCrunch

Own the

edge

The edge has moved Edge is where the customer is

Platform Integration at the Edge

Jamie DimonJ.P. Morgan Chase

“Silicon Valley is coming!”

“The battle is decided if the startup gets the distrubution before the incumbent gets the innovation”

James JonesRetail Analyst

RBC

Hide? Hold it

Back?

Instagram raised$1 Billion

The day Kodak went bankrupt

Kodak invented thedigital camera! From your perspective: A disruption

From their perspective: An innovation

“Your margin is our opportunity” MBA = Masters Business Administration

GSD = Get Stuff Done Startups are not smallversions of big companies -They not only create new

products

Search for unknown business models

OPAOther People’s Assets

PayAirline

Dealwith

Retuns

PostSale

Service

Travelocity

Bill &Collect

IssueItinerary

CreateBrand

TraditionalMarketing

Searchfor

Products

IssueTicket

BookTicket

Bill &Collect

IssueItinerary

IssueTicket

PayAirline

Dealwith

Returns

PostSale

Service

SendCustomer

toAirline

UseSearch

Worth $1.8 BILLION

SetPrices

Find Clients

DispatchBill &

Collect

OwnCars

LicenseCars

ServiceCars

Traditional Limo Company

EnforceStandards

Hire Drivers

OwnCars

LicenseCars

ServiceCars

Marketenforcesstandards

Driversfind

them

Add amazingsoftware

OPIOther People’s Information

Platform

Hubs/Platforms

Info Info

Info

Info

Info

OPI = Other People’s Information

OPPOther People’s Products

Hubs/Ecosystems/PlatformsMusic

MusicMusic

Music Music

OPP = Other People’s Products

OPDOther People’s Data

Hubs/Ecosystems/Platforms

GPS

GPS GPS

GPS

GPS

OPD = Other People’s Data

Less Capital

More Speed

But you have.... And perhaps you are not..

“There isNO step two!

Don’t let some kid in the Valley... Assets & Edge

What’s the new model?

2014

0%

6.5%

13%

19.5%

26%

Microsoft Google

16%

7%

The largest cloud app of all

Maintenance Sold By The Hour 40% Cost Reductions…

50% Downtime Improvements

“Engines talk. We liste

n!” ONIOutcomes Not Iron

Outcomes Opportunities

What’s holding

youback?

50% of executives are dissatisfied with

the state of innovation in their company

Boyd & Goldberg“Inside the box”

Check the mirror

Risk vXX

Every company founded by a ri

sk taker

Would your company approvean idea as radical as the one that

founded your company?

Board Room Are About Controlling Risk• Most board have a

Cyber Committee

• Few have an InnovationCommittee

• Which would you ratherhave?

• A Cyber Break In?

• A business failure due to lack of innovation!

I Started My Career As A Receptionist in a travel Agency - 45 years ago

Vega Travel

1st Startup

2nd Startup Sold to American Airlines

• CIO

• VP Computer Ops

• VP Applications

• Asst VP Product

• Asst VP ADS Div

• Director

18 Years AA Big Risk

• Boards

• 9 startups

• 3 went public

• 4 public companies

• 2 non profit

• Consulting company

• Venture Capitalist

• Speaker

• Author

Recently all in...again!

Ran outta money

`

75% of venturebacked startups

FAIL

<50% make itpast 4th birthday

Operating at full throttle

vTake the first risk! Make team feel safe!

Fearless

Prototype

3d PrototypeAI Web Test

“Do it right the first time!”

Watch the films! Check the mirror..again

“Innovation that happens from top

down is orderly but dumb”

“...innovation that happens from the

bottom up is chaotic and smart”

Curtis CarlsonSRI

From the bottom Bozone Layer

Stops bright ideas from moving upwards

TopDownFirst

ThenBottom

Up

Listening reduces risk!

Come together

Why can’t I buy a concept car?

Clarity

Chained to an old model?

We’ve ALWAYS done it this way

We’ve NEVER done it

that way

“What is dangerousis not to evolve”

Jeff Bezos

“Established organizations view disruption as a threat”

How could we do that?

Then Suddenly”

“How did you go bankrupt?”

“Two ways. First gradually

Ernest HemmingwayThe Sun Also Rises

You don’t have to change the world to cause disruption

Do it yourse

lf

Went public

$1.2bbl

Choice

Sold fo

r $1.8 Bbl

Bundling

Sold fo

r $50 m

m Apple didn’t invent

They made them better

TheirInnovation Your

Disruption

InnovationDisruption

You can act!

If you don’t innovate You will be disrupted

Recreateimagine Chuck Hull

Customiza

tion becomes the norm

Reimagine

Radio Controlled AirplanesDrones

Reimagine

reimagine

“The last 25 years were all about who could build things the cheapest.

The next 25 will be all about who can make things the smartest”

Antoine van Agtmael

Lessons learned

•At your favorite online bookstore

• Paperback or Ebook

Disruption

Coming This summer!

6 7

3 421

Forces of disruption

5

8 9 10

What’s holding

youback?

Innovation

New Tech AND

New Business Models

Change comes with risk

But you can minimize it

InnovationDisruption

Stop Disruption Innovate!

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