The Digital Future: ISPIM Conference Innovating in Global Markets - by Jim Stikeleather


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Transformation is essential to 21st century business success. While the purpose of the 20th century firm was to minimize transaction costs and achieve scale, the 21st century firm needs to create new value, better and faster.

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  • Key Point: IT must become entrenched with the businessThe purpose of the 20th century firm:Minimize transaction costsAchieve scalable efficiencyThe purpose of the 21st century firm:Accelerate capability buildingEffectively apply that capability to innovationCreate new valuebetter & fasterMeans of achieving 21st century firm is a socially enabled enterprise operating in a digital business ecosystemSee HBR Article Our Obsession with Scale is Failing UsThis slide nets out the IT problem is really a business problem, the nature of business is changing, what the current organization needs to be evolving toward and criticality of IT. This is the diagnostic slide to help assess whether the customer has recognized they need to make a transition from the characteristics of a 20th century firm to a 21st century organization. In addition, the slide helps diagnosis that they recognized the best means of becoming a 21st century organization.
  • Gause's law – In ecology, the competitive exclusion principle: "complete competitors cannot coexist.“
  • Beyond big data and smart everything – a real time, intiment, intense conversation with your customers.Cyberspace and realspace collide, your manufacturing process itself becomes your product and service mass customization, consumerizationUse gun to talk about barriers to entry going away3d printer that sends you updates to print out and install on itself….
  • The OODA Loop (for Observe, Orient, Decide and Act) a concept applied to the combat operations process, often at tactical, operational tactical and grand strategic level in the military that is also adapted today by commercial operations. It was created by military strategist and US AirForce Colonel John Boyd in the 60’s. The SECI Model (Socialization, Externalization, Combination and Internalization) model developed in 1991 by Professor Ikujiro Nonaka of Japan Institute of Science and Technology and the Organizational Knowledge Creation and Management Framework proposed in 2004 by Harri Oinas-Kukkonen of the University of Oulu, Finland and Stanford University, USA.
  • The Digital Future: ISPIM Conference Innovating in Global Markets - by Jim Stikeleather

    1. 1. The Digital Future:Tomorrow’s Enterprise, Its Offerings and NextGeneration InnovationThe XXIV ISPIM Conference "Innovating in Global Markets: Challenges for Sustainable Growth“Helsinki, Finland, June 16-19 2013
    2. 2. 2 ServicesTransformation essential to 21st century business successThe purpose of the20th century firm:The purpose of the21st century firm:To minimizetransaction costsand achieve scalableefficiencyTo acceleratecapabilitybuilding andeffectivelyapply thatcapability toinnovationCreatingnewvalue —better &fasterNew view:Socially-enabledenterpriseoperating in adigitalbusinessecosystemIT is essential toenabling firms totransform andinnovate withinformation-driven valuecreation
    3. 3. 3 ServicesFuture of enterprise:Industrial workCreative andknowledge workChanged nature of valueValue will be the product of in-the-moment, at-the-placecollaborative value creationactualizing serendipitousopportunity from thecustomerFocus on repetition,scale and efficiencyFocus on originality,innovation and efficacySmaller, more agileenterprisesEcosystems of maniacallyfocused value creationenterprises competingand collaborating to drivedown transaction costs.Complex informationsystemsLots of parts operating peerto peer across organizationalboundaries, with known andunknown factors and varyingdegrees of understandingEvolution of theworkforceFocus on problemsolving, creativity,autonomy, mastery,purpose and individualinformationinfrastructuresEven among competitors, inorder to serve customerStrong partnerships andrelationshipsEffective socially-enabled enterpriseSpontaneous networkedcollaboration amongmultiple parties,dynamically, instantly tocreate knowledge and value2.0EnterpriseManagement 2.0Economics 2.0IT 2.0Capitalism 2.0Planning &directingStaffing &controllingHierarchical &authoritativePreparing &mentoringEngaging &framingBroadrelationships& crowdsourcingFrom:To:
    4. 4. 4 ServicesFuture of the Consumer & Internet of ThingsSerendipityEconomyOpportunistic valuecreated in the momentResident inCyberspace.Any time, any place, anydevice, any information.Resident inRealspace.Consistent, integrated,accessible, secure.Context iseverything.Where I am who I’mwith, time of day, who isnearby, what is nearby,on my calendar, on myto do, what I have withme, what is upcoming….Every “thing” is aone off.Individualization toachieve the outcomesthey want and need.Value ChainsPricingCapital, Plant& StaffEcosystemsGain SharingCustomersFrom:To:The process of creation is distinct from value realizationValue realization is displaced in time from the act thatinitiated the valueThe measure of value requires external validationValue is not fixed and cannot be forecastedLooking at a network in the present cannot anticipateeither its potential for value nor any actual value it mayproduceSerendipity may enter at any point in the value web, and it maychange the configuration of the value web at any time
    5. 5. 5 ServicesGetting There – technology does not cause change, it only enables, facilitatesand accelerates change that already wants to take place…Current StateNowkey business processesand business leverhierarchyDetailed requirements andusage patternsOrganizational capabilitiesFull “understanding”of existing economicenvironment with keymetricsFuture State2020?Delivering on aServices PlatformOn demand co-creationof new value bycollaborating consumersand suppliersTransformationOpen Innovation, who can addvalue to mine, who can I addvalue to theirs?sense making model (dataproceeds framework) versuscategorization model(framework proceeds data)ForeverDigital business ecosystems
    6. 6. 6 ServicesOrganic behavior: Organization, Service, ProductConceptualize & DecideObserve & ComprehendOrient&CommunicateActinCollaborationDerived from:Trilogy Model KnowledgeCreation ProcessMethusael B. CebrianCollege of EducationCapitol University, PhillipinesIntegration of the• OODA LoopUS AirForce Colonel John Boyd• SECI ModelSocialization, Externalization,Combination and InternalizationProfessor Ikujiro Nonaka ofJapan Institute of Science &Technology• Oinas-KukkonenOrganizational Knowledge Creation andManagement FrameworkHarri Oinas-KukkonenUniversity of Oulu, FinlandStanford University, USA
    7. 7. Thank you.Stike_Stikeleather@dell.com @stikeyoda