ASAE Tech Conference 2012 Closing Keynote on Disruptive Tech

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The deck I used for the closing address in Washington, DC on December 6th, 2012 at the ASAE Annual Conference. It explores the challenges and opportunities of the "Big Five" trends happening today: …

The deck I used for the closing address in Washington, DC on December 6th, 2012 at the ASAE Annual Conference. It explores the challenges and opportunities of the "Big Five" trends happening today: Smart Mobile, Social Media, the Cloud, Big Data, and Consumerization.I also included some non-profit trends for this audience.

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  • 1. The Challenges and Opportunitiesof Business in the Disruptive Tech EraClosing Keynote by Dion Hinchcliffe (@dhinchcliffe)
  • 2. Introduction Spring 2012 Dion Hinchcliffe • ZDNet’s Enterprise Web 2.0 • http://blogs.zdnet.com/Hinchcliffe • ebizQ’s Next-Generation Enterprises • http://www.ebizq.net/blogs/enterprise •• Chief Strategy Officer http://dachisgroup.com • mailto:dion.hinchcliffe@dachisgroup.com • : @dhinchcliffe® 2012 Dachis Group 2
  • 3. To continue this discussion (and for slides): Hashtag: #tech12 gh1® 2012 Dachis Group 3
  • 4. Dachis GroupThe good news: Technology is driving business productivity (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 4
  • 5. Dachis GroupBut is this coming from traditional IT?(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 5
  • 6. Dachis GroupIs IT even leading innovation today?(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 6
  • 7. Dachis GroupYet 60% of CIOs believe they should be drivinggrowth and productivity. Source: Deloitte Survey, 2011(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 7
  • 8. Dachis GroupBut technology change is happening fasterthan ever before • A tsunami of new mobile devices and technologies • A vast wave of social media • The rumbles of cloud computing and SaaS • The shift to DIY • A flood of Big Data • Consumerization!(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 8
  • 9. Dachis GroupA perfect storm of technology change(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 9
  • 10. Dachis GroupHappening almost all at once(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 10
  • 11. Dachis Group Pervasive disruption is here...(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 12. Dachis GroupAnother Way ofLooking At All This World Workers IT(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 12
  • 13. Dachis GroupNew Digital EngagementChannels Are The Focus And where the value is...(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 13
  • 14. Dachis GroupThe channel shift has been global 1.3 From: Social Business By Design, 2012 billon people(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 14
  • 15. Dachis GroupYet businesses are still fairly immature with digital MaturingCompetent Webinars online video big data gamification direct mail P2P video cloud social media mobile apps Immature (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 16. Dachis GroupIs all this change worth it? Pace of Technology Change Life Expectancy of S&P 500 Company Human Population Growth (cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 17. Dachis GroupKey data point #1: Mobile• Smart mobile devices outshipped PCs in early 2011• Tablets are expected to on par with PCs by 2015• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs• Global mobile data going geometric is going to be the largest challenge to growth and use• App stores are creating all new conduits between IT suppliers and workers(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 17
  • 18. Dachis Group Mobile Internet Ramping Up Faster Than Desktop Internet by 5x Source: Mary Meeker, Morgan Stanley(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 19. Mobile Business Strategy | June 2010Channel Fragmentation Is Now The Norm +400 social networks with over 1 million users = 2 billion mobile Internet users + 100 millionaggregate audience of about 900 million next-gen smart phone users across hundreds of device types Have Become The De Facto Primary Channels for Customer and Worker Engagement® 2010 Dachis Group. Confidential and Proprietary 19
  • 20. Dachis Group The Risks of Inaction(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 21. Dachis Group Opportunity - The Stories • Augmented Reality • Real-time Translation • The “Taxi” Button • Multi-point Video Conferencing • The CRM “lite” app & “walking the line” • Business intelligence(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 22. Dachis Group The Smart Mobility Lesson • Mobility isn’t just about computing that can move around • It’s a fundamental re-invention of computing • All new possibilities now exist • We must reinvent our businesses around what these new platforms make possible(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 23. Dachis Group Why Smart Mobility is qualitatively different • Sensors (and lots of them) • Always connected • Location awareness in 3D space • App stores • Long battery life • Always on • Touch-based interfaces • Voice control • New operating systems(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 24. Dachis Group The Take-Aways for Mobile • Mobile first, mobile apps, on any device (BYOD, BYOA) • Build the “button” for your business • Enable customers and workers to self- service with apps and data • Rethink business solutions for what mobile devices are uniquely capable of • And do it quickly, though you do have a (small) window of opportunity to learn Do this and avoid smart mobility(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 25. Dachis GroupKey data point #2 The Adoption Rates of E-mail, Social Networks, and E2.0• Social is now the dominant form of 1B Internet 100% communication on projected the planet 750M 75% Enterprises Global Users Percent of• Enterprises are 2-4 imate years behind the high est 50% rest of the world. 500M low estimat e• Yet data shows 25% that revenue of 250M social businesses 2006 2007 2008 2009 2010 2011 is 20+% higher on average. Consumer Social E-mail Enterprise 2.0 Profitability is Networks better too. Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC- Source: McKinsey and Frost & Sullivan(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 25
  • 26. Dachis GroupHundreds of public social networks...(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. ...channel fragmentation 26
  • 27. Recent Examples of Social Media Transformation® 2012 Dachis Group 27
  • 28. Dachis Group Status as of December, 2011 Source: Alcatel-Lucent(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 29. Dachis Group(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 30. Dachis Group 21% increase in bottom line in Q4 2011(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 31. Dachis Group “We have a very specific, very Legal Industry: Case Study educated group of people who are going through the biggest crises of their lives, all with the same needs, • Roberts & Durkee all needing the same information… • A Florida based law firm and I needed to be able to get that specializing in product information out in public very liability, construction defects & quickly.” commercial & insurance litigation • Wanted to get the word out about the 2001 China toxic drywall situation • Employed a sophisticated multi-channel social media outreach program • Social media discussions of the issue led to high SEO and stream of prospects needing help • Led to over hundred major new cases in a short time • “We get about half of our new cases through our blog.” - David Durkee, Managing Partner(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 32. Dachis Group Organizations that extensively use social media have 1.6 times higher profit growth. -Frost and Sullivan(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 33. Dachis Group Results for non-profits as well(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 34. Dachis Group Investments are still nascent for non-profits• 98% have Facebook page with average community size of over 8k fans.• Average Facebook and Twitter communities grew by 30% and 81%, respectively.• Average value of a Facebook Like is $214.81• 73% allocate 1/2 a full time employee to managing social networking activities.• 43% budget $0 for their social networking activities.• The top 3 factors for success are: Strategy, prioritization, dedicated staff Blackbaud Survey, 2012(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved.
  • 35. Dachis GroupFully social organizations get outsized benefits Source: 2011 McKinsey Web 2.0 Survey(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 35
  • 36. Dachis GroupThe biggest challenge: Engaging at scale(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 36
  • 37. Dachis GroupThe Cloud Is Increasingly Subversive• It’s in our worker’s homes• It’s on their laptops and PC at work• It’s in our worker’s pockets• It’s the world’s largest IT department• It has all the data• It has all the apps• It has all the people(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 37
  • 38. Dachis GroupA new mindset has arrived: Consumerization• “It’s not so hard, I can do this myself.” DIY• “There’s an app for that.”• “I’ll just install this myself.”• “What’s the URL for that?”• “We’ll ask for forgiveness instead of permission.”• “This app is way too hard to use. I’ll use my own.” Simple Fast Easy And Works The Way They Want It To(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 38
  • 39. Dachis GroupA tidal wave of data• 80-90% of IT information is not accessible• The amount of information today is just a trickle compared to what it will be in 2-3 years• It will require all new technologies and skills that IT departments don’t have• Google Search and Analytics has taught all of us how easy it should be(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 39
  • 40. Dachis GroupOur information landscape is now measured inmillions of exabytes 1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes• Social ecosystems are largely responsible today.• Soon it will be sensors that are the dominant data source.• The good news: Information is no longer submerged.• However, it is increasingly becoming an onslaught. Visible Knowledge Us(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 40
  • 41. Dachis Group“Information overload is not the problem. It’sfilter failure.” - Clay Shirky(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 41
  • 42. Dachis Group(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 42
  • 43. Dachis GroupGetting value from Big Data• Obtain simple, easy to use business intelligence tools anyone can use- Don’t forget Google is a big data app• Should be cross silo• Must integrate internal and external data• Must provide actionable business-level insights, not just raw stats• Some existing BI tools can do this• Then “Moneyball” your business processes• But brand new services will typically bring this to your organization(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 43
  • 44. Industry: Finance Last year, WiseWindow, a syndicated data provider, provided its The Story: real-time social media sentiment measurement technology, Mobi, across Bloombergs network of 300,000 desktop terminals. WiseWindow showed social media sentiment correlated with stock returns, saying “Only the aggregate opinions from ALL sourcesThe Motivation: are truly predictive of an industrys stock prices." Their social data analysis was found to boost investment returns by over 30% annually.
  • 45. Industry: Disaster Management In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter The Story: turned out to be the first and richest source of data, even over the official U.S. Geologic Survey. Many visualizations have been created to show how the information about natural disaster (see the Wall Street JournalThe Motivation: example below, on the Virginia earthquake) The U.S. Geologic Survey is now exploring how to use social media to augment its own reports, which take 2-20 minutes to issue.
  • 46. Industry: Telecommunications T-Mobile wanted to get out ahead of customer defections to The Story: other carriers. They needed an accurate and scalable source of information. They looked to social media. The firm integrated big data across their IT systems, using near The Results: real-time the analysis of 33M customer data records, web logs, billing data and social media information. The result: The company was able to cut customer defections in half in a single quarter.Source: Financial Times
  • 47. So. How Do We Get There?® 2012 Dachis Group 47
  • 48. Dachis GroupFor IT, tech change today is nearly unsustainable(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 48
  • 49. Dachis GroupRethinking tech adoption• Ignoring technology change isn’t the answer• Maintaining backlogs isn’t the answer• Giving up isn’t the answer• Proceeding in the same direction isn’t the answer• Letting everyone do whatever they want isn’t the answer• Should we look at new models for IT?(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 49
  • 50. Dachis GroupFacing Reality:IT is becoming pervasive and user-driven• In 2000, only 10% of IT was unsanctioned or outside of central control• Today that’s 30% and climbing quickly. CoIT Traditional IT 2000 2010 2013(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 50
  • 51. Dachis GroupWe Must Become Resilient to Constant Change There is great economic and social value in achieving this (in pink above)(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 51
  • 52. Dachis GroupHow do we design for loss of control?• “Make change an integral function. Native.” - JP Rangaswami frequent adaptive course cycles of corrections change refinement growth disruption renewal(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 52
  • 53. Dachis GroupThe Future of IT: Consumerization & Cooperation • Broad enterprise uptake of consumer tech • Business-led solutions with IT support • Consumerization CoIT • Disruptive software distribution models • IT as enabling business infrastructure of the workplace • • Exponential increases in apps/devices • Decentralized governance Rise of shadow IT pressure to change (10% ten years Tec Social Computing ago, nearly a 3rd today) h Consumer Tech Enterprise Evolution nol • ogic Shadow IT Adoption SaaS makes al narrowing Cloud Computing/SaaS enterprise cloud Dis gap apps just a URL rup Next-Gen Smartphones away tion App Stores • Smartphones the The Business/IT new “IT dept in Divide Line control vs. progress your pocket” of profit center vs. overhead change backlog IT Dept. • Tech savvy business Business lack of alignment users leading the unlike competencies differing priorities charge with their Common Ground own vision
  • 54. Dachis GroupGetting There• Option #1: Don’t change. New tech will route around you.• Option #2: Deliberately give up all non-essential control.- But make it secure and safe.• Empower workers and business partners on the edge: It fundamentally changes what’s possible• Give everyone simple, easy to understand rules of CoIT engagement for social, mobile, and cloud.• Lay the foundation for managing and governing 10-100x more IT and data.• Throw out the traditional IT playbook & go “emergent.”• Identify CoIT skills, then cultivate or hire for them.• Become a change agent and an IT revolutionary. You probably won’t have your job in it’s current form long anyway.
  • 55. Thank you
  • 56. Dachis GroupAlso See: Social Business By Design• Published May, 2012• From John Wiley & Sons• The definitive management strategy guide and handbook on social business.• Explores major real-world successes and how to emulate them..• The most complete and business-focused statement on what social business is and why it’s strategically vital.• Recently #1 in Amazon’s Hot New Releases• Companion Web site at http://socialbusinessbydesign.com(cc) 2012 Dachis Group. Creative Commons. Some Rights Reserved. 56