The digital future: key trends, developments and innovation in the cloud


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Jim Stikeleather participated in the Management Roundtable’s groundbreaking conference, The Next Product Development Revolution at the MIT Faculty Club in Cambridge, MA. Product innovation is really a business innovation problem and the purpose of the 21st Century firm is to accelerate capability building and effectively apply that capability to innovation. Thereby creating new value better & faster. This leads to a Socially Enabled Enterprise operating in a Digital Business Ecosystem where technology is primal to success. In order to achieve this, firms must transform from Products to Services.

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  • Gause's law – In ecology, the competitive exclusion principle: "complete competitors cannot coexist.“
  • Reinforce this move to selling performance / experience instead of goods or effort (hourly billing)
  • Cyborg decision – angi’sliest, eopinions, amazon reviews,siri, on starSeth Goden Permission marketingHere are the 10 commandments of future brands1. State a higher cause.People follow brands just like we follow other people. State your mission and you will have people following you. The higher the cause the higher the prize. We will buy your products and services but now we’re in it for something else. Something that will last. This way you’ll ensure we’ll get through the good times and the bad.2. Impress us with your miracles.Me and most people grow tired quickly. Constantly surprise us without loosing your soul. In every relationship it’s about surprising people while staying true to your cause, your soul. The same goes for brands. You’ll be surprised how much you’ll gain from innovation. As long as you remain the same old brand you can expect loyalty from us.3. Bring a smile to our faces every time we meet.Someone once said “Smiling is good for you” and I can’t do anything but agree. A smile is the gift of gods, never forget that!4. Tell us stories.We’re still the same old half monkeys that used to sit by the camp fire and tell stories. It’s in our blood. Start telling them to us and we’ll move into a state of hypnosis. Once we wake up it’s to late – we’re hooked.And remember! We’re living in the viral times. Whatever kinda shit you put together. Make sure it got wings. If I wanna show you of to my friends. Equip me with a rocket, some gas and a box of matches. I’ll put the whole universe on fire for you if you let me.5. Wearing your mark of excellence is our badge of identification.You might think you’re taking risks while developing your product and services. But hey! Think about us. We might be wearing those pants of yours in front of our friends. I might be taking my girl out for a date in the car you’re making. You better make people go wow when they see us!6. Be true to your heritage – and if you haven’t got any, start building.10% of what I’m paying for is your product or service. 90% of it is authenticity. Where do you come from. What gives you the right to do what you do.7. Treat every possible interaction with us as your last chance to impress us.There’s simply no reason not to treat every single interaction point as extremely important. What does it all do and how does it support your brand. Every pen. Every business card. Every phone. Every print ad. Every website. Every invoice. Every press release. Every board member. Every TVC. Every event. Every point of sale interaction. Every form. Every coffee machine. Every sales person. EVERYTHING matters!8. Don’t copy others – build your own religion.I sort of like cats even though I spit three times when I see a black one crossing the roads. But I fuck’n hate copycats. People love people taking risks. Sometimes you will fall down hard. But falling down teaches you how to avoid falling down again. Never falling down won’t teach you anything! Earning followers is about making sacrifices.9. Be passionate about what you do.I wouldn’t expect anything else from someone I love. Would you?10. Save the world as we know it!Sustainability. It’s just something we all will expect from strong brands and leaders. Sooner than later.
  • 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 IkujiroNonaka of Japan Institute of Science and Technology and the Organizational Knowledge Creation and Management Framework proposed in 2004 by HarriOinas-Kukkonen of the University of Oulu, Finland and Stanford University, USA.
  • Perfect economy stuff under innovation
  • The digital future: key trends, developments and innovation in the cloud

    2. 2. Product innovation is really a business innovation problem This means a The purpose of the The purpose of the Socially 20th Century firm: 21st Century firm: Enabled Enterprise To minimize To accelerate Creating operating in a transaction costs Digital capability building new Business and achieve scalable and effectively apply value Ecosystem. efficiency. that capability to better & innovation. faster Tech is primal to success, but = firms must transform from Products to Services.2 CC BY-NC-SA 3.0 Services
    3. 3. Future of the Market: Commercial Products Creative andIndustrial work knowledge work.Focus on Focus on Changed nature of value Smaller more agile Effective socially 2.0repetition, scale, and originality, innovation and as a consequence of the enterprises. enabledefficiency efficacy serendipity economy. enterprise. From: Value will be the product of in the Enterprise Management 2.0 moment, at the place An ecosystem to speed up the processes of 2-way collaboration between publishers and collaborative creation. success selection. consumers of Planning & To: Economics 2.0 content, knowledge and Directing IT 2.0 value. Preparing & Capitalism 2.0 Mentoring Staffing & Controlling Engaging & Universal Intimate partnerships Complex Evolution of the and relationships. Information workforce. framing access, availabili Systems.Hierarchical &authoritative ty and on Even among competitors in Lots of parts, known and Mentoring people v/s Broad relationships demand order to services customers. unknown factors, with varying degrees of directing people on how to achieve the & crowd sourcing performance. understanding. outcomes we need.3 CC BY-NC-SA 3.0 Services
    4. 4. Future of the Market: Consumer ProductsSerendipity The process of creation is distinct from value realizationEconomyOpportunistic value Resident in Resident increated in the moment Cyberspace. Realspace. Value realization is displaced in time from the act that initiated the value From: Any time, any place, any Consistent, integrated, a device, any information. ccessible, secure. To: The measure of value requires external validationValue Chains Ecosystems Value is not fixed and cannot be forecasted Pricing Context is Every “thing” is a Looking at a network in the present cannot anticipate Gain Sharing either its potential for value nor any actual value it may everything. one off. produceCapital, Plant & Staff Where I am who I’m Individualization to Serendipity may enter at any point in the value web, and it may with, time of day, who is achieve the outcomes Customers change the configuration of the value web at any time nearby, what is they want and need. nearby, on my calendar, on my to do, what I have with me, what is upcoming….4 CC BY-NC-SA 3.0 Services
    5. 5. Products are surrogates for or manifestations of SERVICESjust easier now… Not a New Idea Selling Performance Instead of Goods • People don’t buy things • Strategy for tomorrow • Buy solutions to problems • Use and access versus ownership • What is important to the • Action / regeneration • DIY individual when he or she makes • Commoditization • Knowledge & Service; Replicable & a purchasing decision • Close to customer Shareable • Railroad versus transportation • Simple & lean, experiment • New products and services, opportunities Leo McGinneva’s quote about • Design the product around the • IP depreciates, Performance why people buy quarter-inch services is forever drill bits: “They don’t want • Design the services around the customers (and the ecosystem) quarter-inch bits. They want • Product addresses perishability quarter-inch holes.” and availability (customer shows up) of services • You can’t predict the future – services are (can be agile).5 CC BY-NC-SA 3.0 Services
    6. 6. With one exception BRAND Visibility Positioning Leveraging Were living in the Giving the Cohesion, i Opportunity Service tangibility transparent century where service an ntegration and impact all information is accessible identity & and trust only a keystroke away: image • Always tell a true story. Specificity Adaptability • Innovate, simplify, be responsible. Consistency Innovation Future Brand • Design counts, a lot. Loyalty Engagement Fulfillment Followers Current Brand Human Decision Cyborg Decision Promise = Whether it has Customers the capability to work and = how well it demonstrates a works for measurable what I benefit when I acquired it need it6 CC BY-NC-SA 3.0 Services
    7. 7. Getting There – technology does not cause change, it only enables, facilitatesand accelerates change that already wants to take place…Current State Future State Transformation key business processes and business lever hierarchy Detailed requirements and Delivering on a usage patterns Services Platform Organizational capabilities Open Innovation, who can add Digital business ecosystems value to mine, who can I add value to theirs? Full “understanding” On demand co-creation sense making model (data of existing economic proceeds framework) versus of new value by environment with key categorization model metrics collaborating consumers (framework proceeds data) and suppliers Now 2020? Forever7 CC BY-NC-SA 3.0 Services
    8. 8. Organic behavior: Organization, Service, Product Conceptualize & Decide Orient & Communicate Act in Collaboration Integration of the • OODA Loop US AirForce Colonel John Boyd • SECI Model Socialization, Externalization, Combination and Internalization Professor Ikujiro Nonaka of Japan Institute of Science &Technology • Oinas-Kukkonen Organizational Knowledge Creation and Management Framework Harri Oinas-Kukkonen University of Oulu, Finland Stanford University, USA Derived from: Trilogy Model Knowledge Creation Process Methusael B. Cebrian College of Education Observe & ComprehendCapitol University, Phillipines 8 CC BY-NC-SA 3.0 Services
    9. 9. 3 necessary dimensions of successAttitude Focus Technology Innovation Standardize Innovative On demand • Customer, customer, c integration w/ others ustomer (and their ecosystem) Pragmatic Simplify • Suppliers, competitors, partners, customers MMI Invisibility (your ecosystem) Divergent Intelligent Availability Thinking • What creates Convergent value, what am I required to do, what do Automate I do best. Self serving user and• Interactions & Relationships • Efficacy, speed, agility product• Ressources & • Business Model -> Allocations Service -> Product -> Future-ready Service -> Business• Outcomes & The Cloud(s) Model Activities • Open, collaborative, co• Questions & Focus -creative9 CC BY-NC-SA 3.0 Services
    10. 10. Thank you. @stikeyoda