The New Future: How the
Technologies of the Social era
are Changing the Way we do
Business
Professor Costas Markides
Londo...
A Simple Exercise:
• In sixty seconds: Add all the
numbers from 1 to 100 and tell
me the sum total (without using
a formul...
An Amazing Transformation:
• How you tried to solve this
problem…
• (in particular, how many of you
did not even try to so...
An Amazing Transformation:
• How you tried to solve this
problem…
• Compared to how people used to
solve this problem in t...
An Amazing Transformation:

• How you tried to solve this
problem…

• Compared to how people used to
solve this problem in...
The First Change:
• The new technologies are
changing your employees
as people: how they think,
how they behave, how they
...
Your Employees Are Now:
• Less attentive
• More Informed
• Less Loyal
• More Connected
• Less Patient
• More Demanding
For Example: Research by
Professor Gary Small, UCLA
1)Surfing

the internet can physically rewire our neural
pathways
2)Ju...
More Connected: Facebook
• 845 million monthly active users
• 2.7 billion Likes and Comments
every day.
• 250 million phot...
More Informed:
• 72% of Europeans take their
mobile phones or iPads to bed!
• The last thing they see before
falling aslee...
More Informed Workaholics:
• 93% of executives take their
blackberries on vacation.
• 47% tell their partners that they
le...
Global Citizens:
• Get to learn what is happening
around the world fast…
• More likely to engage in a
“cause” far away fro...
More Culture Sensitive:
Informed Choices:
• Not only do we get the
necessary information on the
Internet…
• But increasingly “word of
mouth” from ...
Less patient: The “Now” Era
• Instant Messaging
• Instant Feedback
• Instant Gratification
• Instant Information
Decentralised Workaholics:
• When do you stop work?
A New Employee
• I could go on here…
• But the key point is: You are
now dealing with employees
(and customers) that are
f...
Your Employees Are Now:
• Less attentive
• More Informed
• Less Loyal
• More Connected
• Less Patient
• More Demanding
What is the Implication #1?
• Generation X managers
trying to manage Generation
Y employees…
• It’s as if they come from
M...
Are we out of our depth?
What is the Implication #2?
• How do you “control” such
a decentralised, informed
and demanding workforce?
The Wrong Thing to Do:
• You cannot “control” the
new employee…[for example, how
do you know if they are working or are
“w...
The Only Way Forward:
• Strong shared values that act
as the parameters within
which people can operate
with autonomy.
• T...
But Note:
• They are strong because you
actively “sold” these values
to them and won their
emotional commitment.
• Move yo...
The Second Change:
• Not only are the new
technologies changing our
employees as people, but
they are also changing how
th...
The Hierarchy is Dead:
• Decentralised: Work from home,
at the airport, at Starbucks…
For Example:
• In

2009, it was estimated that over
50 million US workers (40% of the
working population) worked from
home...
The Hierarchy is Dead:
• Decentralised: Work from home,
at the airport, at Starbucks…
• Virtual Teams, Geographicallydispe...
The Hierarchy is Dead:
• Decentralised: Work from home,
at the airport, at Starbucks…
• Virtual Teams, Geographicallydispe...
Some Examples:
• Singularity University
• TEDx
• McAfee
What are the Implications?
• How do you keep them all
focused and motivated?
• How do you avoid chaos?
• How do you promot...
Innovation: Physical proximity is
important
•

Study by Isaac Kohane at Harvard
Medical School.

•

He analyzed 35,000 pee...
What he found
•

When co-authors were closer together,
their papers tended to be of significantly
higher quality.

•

The ...
Physical proximity is important
• If you want people to work
together effectively, these
findings reinforce the need
to cr...
A Couple of Examples:
• Steve Jobs at Pixar: a central
atrium (with the only set of
bathrooms in the entire
building)
• Bu...
Even More:
• With employees working
anywhere and/or with
outsiders in a decentralised,
dispersed and virtual way,
how do y...
The Only Way Forward:
• Strong shared purpose that
unites and galvanizes
disparate people towards the
common goal.
For Example:
• Facebook: Give People the
power to share and make the
world more open and
connected.
• Apple: We will chang...
But Note:
• It is “strong” because you
actively sold this purpose or
vision to them and won their
emotional commitment.
HOW TO WIN EMOTIONAL COMMITMENT
I KNOW
I UNDERSTAND
YES, I THINK I CAN
I WILL
The Third Change
• The new technologies are
changing how we interact
with customers.
For Example:
• Customised Products
Marketing

Design 5%

Shared parts 15%

Shared platform 25%
Marketing

Design 15%
Banks

Shared parts 30%
Memberoffers

Shared platform 30%
Kontakt Support Salg
SystemBanks – B2E
DJØF
EsF Bank
Politibanken
DTS-Bank
SPOR-Banken
IDA Bank
DFL-Banken
DADL

Gl
OfficersBanken
CS banken
DM...
For Example:
• Customised Products
• Customised Marketing
For Example: KLM
For Example:
• Customised Products
• Customised Marketing
• Customised Promotions
For Example: Target
•

Store Loyalty card

•

Online purchases

•

Coupon redemptions

•

Email click-thru

•

Online brow...
And then What?
•

Centralise and Analyse all this data per
customer

•

Develop “customized” product offerings;
delivered ...
Not All Positive:
• Here are three examples of how
our changing relationship with
customers is affecting HR…
For Example: United
For Example: Comcast
The Question Is:
• Every single interaction with a
customer has the potential to be
either a global PR disaster or a PR
tr...
The Only Way Forward:
• Customer-centric behaviors
have to be institutionalised
in the culture of the
organisation…
The Fourth Change
• The new technologies
are changing the
internal processes of
the organisation.
For Example:
• From internal R&D to Open
Innovation…
Open Innovation
• P&G: Connect and Develop strategy
• Developing software at Netflix that can
predict what movies a custom...
An Example of Open Innovation:
Changing Our Processes:
• From internal R&D to Open
Innovation…
• From centralised financing to
Crowdfunding…
An Example of Crowdfunding:
Changing Our Processes:
• From internal R&D to Open
Innovation…
• From centralised financing to
Crowdfunding…
• From fixed...
Dynamic Pricing at Amazon
Changing Our Processes:
•

From internal R&D to Open Innovation…

•

From centralised financing to
Crowdfunding…

•

From ...
Lots of Changes!
• I do not want to give the
impression that the new
technologies will change
everything!
• Some things wi...
What Will Stay the Same?
It’s a new World
• Not everything will change…
• But hopefully I have
challenged you enough to
start thinking about the ma...
Costas Markides - How Technologies of the Social Era Are Changing the Way We Do Business
Upcoming SlideShare
Loading in …5
×

Costas Markides - How Technologies of the Social Era Are Changing the Way We Do Business

1,231 views
1,040 views

Published on

Published in: Business, Technology, Career
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,231
On SlideShare
0
From Embeds
0
Number of Embeds
10
Actions
Shares
0
Downloads
78
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide
  • {}
  • Costas Markides - How Technologies of the Social Era Are Changing the Way We Do Business

    1. 1. The New Future: How the Technologies of the Social era are Changing the Way we do Business Professor Costas Markides London Business School
    2. 2. A Simple Exercise: • In sixty seconds: Add all the numbers from 1 to 100 and tell me the sum total (without using a formula)…
    3. 3. An Amazing Transformation: • How you tried to solve this problem… • (in particular, how many of you did not even try to solve it!)
    4. 4. An Amazing Transformation: • How you tried to solve this problem… • Compared to how people used to solve this problem in the early 1990s (when I first started using it…)
    5. 5. An Amazing Transformation: • How you tried to solve this problem… • Compared to how people used to solve this problem in the early 1990s when I first started using it… • Compared to how typical teenagers do it today…
    6. 6. The First Change: • The new technologies are changing your employees as people: how they think, how they behave, how they work, what motivates them, what their values are…
    7. 7. Your Employees Are Now: • Less attentive • More Informed • Less Loyal • More Connected • Less Patient • More Demanding
    8. 8. For Example: Research by Professor Gary Small, UCLA 1)Surfing the internet can physically rewire our neural pathways 2)Just 5 hours of exposure to the net is enough to change the structure of our brain. 3)The internet is altering our brains: Cursory reading Hurried and distracted thinking Superficial learning Attention span reduced to seconds
    9. 9. More Connected: Facebook • 845 million monthly active users • 2.7 billion Likes and Comments every day. • 250 million photos uploaded every day. • 100 billion friendships
    10. 10. More Informed: • 72% of Europeans take their mobile phones or iPads to bed! • The last thing they see before falling asleep and the first thing they check when they wake up is news…
    11. 11. More Informed Workaholics: • 93% of executives take their blackberries on vacation. • 47% tell their partners that they left it at home • (data provided by RIM)
    12. 12. Global Citizens: • Get to learn what is happening around the world fast… • More likely to engage in a “cause” far away from home. • Have become more sensitive to other cultures…
    13. 13. More Culture Sensitive:
    14. 14. Informed Choices: • Not only do we get the necessary information on the Internet… • But increasingly “word of mouth” from anybody around the world is becoming our source of information.
    15. 15. Less patient: The “Now” Era • Instant Messaging • Instant Feedback • Instant Gratification • Instant Information
    16. 16. Decentralised Workaholics: • When do you stop work?
    17. 17. A New Employee • I could go on here… • But the key point is: You are now dealing with employees (and customers) that are fundamentally different from us or our parents.
    18. 18. Your Employees Are Now: • Less attentive • More Informed • Less Loyal • More Connected • Less Patient • More Demanding
    19. 19. What is the Implication #1? • Generation X managers trying to manage Generation Y employees… • It’s as if they come from Mars!
    20. 20. Are we out of our depth?
    21. 21. What is the Implication #2? • How do you “control” such a decentralised, informed and demanding workforce?
    22. 22. The Wrong Thing to Do: • You cannot “control” the new employee…[for example, how do you know if they are working or are “wasting time” on Facebook?] • And you certainly cannot “control” them with rules and regulations.
    23. 23. The Only Way Forward: • Strong shared values that act as the parameters within which people can operate with autonomy. • Think of what you do with your children…
    24. 24. But Note: • They are strong because you actively “sold” these values to them and won their emotional commitment. • Move your values from the wall to people’s hearts.
    25. 25. The Second Change: • Not only are the new technologies changing our employees as people, but they are also changing how they work.
    26. 26. The Hierarchy is Dead: • Decentralised: Work from home, at the airport, at Starbucks…
    27. 27. For Example: • In 2009, it was estimated that over 50 million US workers (40% of the working population) worked from home at least part of the time. • The forecast is that this number will jump to more than 75% by 2020.
    28. 28. The Hierarchy is Dead: • Decentralised: Work from home, at the airport, at Starbucks… • Virtual Teams, Geographicallydispersed giving rise to the Network Organisation…
    29. 29. The Hierarchy is Dead: • Decentralised: Work from home, at the airport, at Starbucks… • Virtual Teams, Geographicallydispersed giving rise to the Network Organisation… • From employees to Co-Creators: working with outsiders (nonemployees) on common projects
    30. 30. Some Examples: • Singularity University • TEDx • McAfee
    31. 31. What are the Implications? • How do you keep them all focused and motivated? • How do you avoid chaos? • How do you promote innovation?
    32. 32. Innovation: Physical proximity is important • Study by Isaac Kohane at Harvard Medical School. • He analyzed 35,000 peer-reviewed papers mapping the precise location of co-authors. • He related the quality of the research (by counting the number of subsequent citations) to how close the co-authors’ offices were.
    33. 33. What he found • When co-authors were closer together, their papers tended to be of significantly higher quality. • The best research was consistently produced when scientists were working within ten metres of each other. • The least cited papers tended to emerge from collaborators who were a kilometre or more apart
    34. 34. Physical proximity is important • If you want people to work together effectively, these findings reinforce the need to create architectures that support frequent, physical, spontaneous interactions.
    35. 35. A Couple of Examples: • Steve Jobs at Pixar: a central atrium (with the only set of bathrooms in the entire building) • Building 20 at MIT: More innovations coming out from this building in 1942-45 than in the previous 100 years.
    36. 36. Even More: • With employees working anywhere and/or with outsiders in a decentralised, dispersed and virtual way, how do you avoid chaos?
    37. 37. The Only Way Forward: • Strong shared purpose that unites and galvanizes disparate people towards the common goal.
    38. 38. For Example: • Facebook: Give People the power to share and make the world more open and connected. • Apple: We will change the way people think of computers (or music or TV or news…)
    39. 39. But Note: • It is “strong” because you actively sold this purpose or vision to them and won their emotional commitment.
    40. 40. HOW TO WIN EMOTIONAL COMMITMENT I KNOW I UNDERSTAND YES, I THINK I CAN I WILL
    41. 41. The Third Change • The new technologies are changing how we interact with customers.
    42. 42. For Example: • Customised Products
    43. 43. Marketing Design 5% Shared parts 15% Shared platform 25%
    44. 44. Marketing Design 15% Banks Shared parts 30% Memberoffers Shared platform 30% Kontakt Support Salg
    45. 45. SystemBanks – B2E DJØF EsF Bank Politibanken DTS-Bank SPOR-Banken IDA Bank DFL-Banken DADL Gl OfficersBanken CS banken DM PoKoBank Ældre Sagen Safu-Bank
    46. 46. For Example: • Customised Products • Customised Marketing
    47. 47. For Example: KLM
    48. 48. For Example: • Customised Products • Customised Marketing • Customised Promotions
    49. 49. For Example: Target • Store Loyalty card • Online purchases • Coupon redemptions • Email click-thru • Online browse behavior • Online cookie • InfiniGraph (that “listens” to shoppers’ online conversations on message boards and internet forums) • Rapleaf (that sells info on shoppers’ political leanings, reading habits, charitable giving, what they like…) • Analyse your photos and statements on Facebook, Linkedin, etc…
    50. 50. And then What? • Centralise and Analyse all this data per customer • Develop “customized” product offerings; delivered in a “customized” way. • Tricky part: how do you offer something specific to a customer without them knowing you are “spying” on them?
    51. 51. Not All Positive: • Here are three examples of how our changing relationship with customers is affecting HR…
    52. 52. For Example: United
    53. 53. For Example: Comcast
    54. 54. The Question Is: • Every single interaction with a customer has the potential to be either a global PR disaster or a PR triumph for us. • How do we ensure that every employee (not just Marketing people) deliver excellent customer service, anytime, anywhere, all the time?
    55. 55. The Only Way Forward: • Customer-centric behaviors have to be institutionalised in the culture of the organisation…
    56. 56. The Fourth Change • The new technologies are changing the internal processes of the organisation.
    57. 57. For Example: • From internal R&D to Open Innovation…
    58. 58. Open Innovation • P&G: Connect and Develop strategy • Developing software at Netflix that can predict what movies a customer is likely to enjoy. • Streamlining the R&D process at Roche
    59. 59. An Example of Open Innovation:
    60. 60. Changing Our Processes: • From internal R&D to Open Innovation… • From centralised financing to Crowdfunding…
    61. 61. An Example of Crowdfunding:
    62. 62. Changing Our Processes: • From internal R&D to Open Innovation… • From centralised financing to Crowdfunding… • From fixed pricing to dynamic pricing…
    63. 63. Dynamic Pricing at Amazon
    64. 64. Changing Our Processes: • From internal R&D to Open Innovation… • From centralised financing to Crowdfunding… • From fixed pricing to dynamic pricing… • From top-down strategy to democratic strategy…
    65. 65. Lots of Changes! • I do not want to give the impression that the new technologies will change everything! • Some things will stay the same…
    66. 66. What Will Stay the Same?
    67. 67. It’s a new World • Not everything will change… • But hopefully I have challenged you enough to start thinking about the many things that YOU need to change in your companies.

    ×