On Digital Transformation - 10 Observations

57,177 views
58,738 views

Published on

The ideas about technology that have become lenses and points of view I return to as I try to makes sense of how things are changing, and what can be done. This is a digital world, so none of this is etched in stone. But from what I’ve seen so far, these things seem to be true.

Published in: Technology, Business
4 Comments
283 Likes
Statistics
Notes
No Downloads
Views
Total views
57,177
On SlideShare
0
From Embeds
0
Number of Embeds
18,283
Actions
Shares
0
Downloads
502
Comments
4
Likes
283
Embeds 0
No embeds

No notes for slide

On Digital Transformation - 10 Observations

  1. BY @MIKEARAUZ, PARTNER AT ON 
 THE NATURE OF 
 DIGITAL 
 TRANSFORMATION 10 OBSERVATIONS
  2. 1. TECHNOLOGY IS 
 A SCIENCE, 
 BUT GETTING PEOPLE 
 TO USE IT IS AN ART. BY @MIKEARAUZ, PARTNER AT 2
  3. According to Margaret Gould Stewart, Director of Product Design at Facebook, it took the designer over 280 hours to perfect the redesign of the Facebook “like” button, a small but vital element of the social web that is seen on average 22 billion times a day across over 7.5 million websites. Source: http://blog.ted.com/2014/03/19/three-lessons-for-designing-for-the-whole- world-margaret-gould-stewart-at-ted2014/ BY @MIKEARAUZ, PARTNER AT 3
  4. THE DIFFERENCE BETWEEN PROMISING AND LEGENDARY DEPENDS ON INTUITION, CREATIVITY, AND TASTE. THE BEST TECHNOLOGY COMPANIES 
 IN THE WORLD FIND WAYS TO BALANCE THESE FORCES. BY @MIKEARAUZ, PARTNER AT 4
  5. 2. OUR INABILITY TO PREDICT THE FUTURE DOESN’T MAKE IT ANY LESS INEVITABLE. BY @MIKEARAUZ, PARTNER AT 5
  6. In 2004 it was difficult to predict whether Friendster, MySpace, or Facebook would be most successful. Looking back, it turns out that the true measure of your wisdom wasn’t whether or not you bet correctly, but rather whether or not you bet at all. BY @MIKEARAUZ, PARTNER AT 6
  7. EMBRACING POSSIBILITY INSPIRES EXPLORATION AND ACTION. QUESTIONING POSSIBILITY OFFERS THE SKEPTICS A CHEAP AND DANGEROUS EXCUSE FOR DOING NOTHING AT ALL. BY @MIKEARAUZ, PARTNER AT 7
  8. 3. EVERYTHING CAN BE DISRUPTED. BY @MIKEARAUZ, PARTNER AT 8
  9. Tesla barely made it out of their start-up phase, but now they’ve got the safest car ever tested, the best rated car ever by Consumer Reports, and they’re blowing other auto stocks out of the water. Just because the car business is hard, doesn’t mean it can’t be completely transformed by a former software engineer. BY @MIKEARAUZ, PARTNER AT 9
  10. DIGITAL DOESN’T RESPECT BOUNDARIES. REGARDLESS OF THE INDUSTRY, DIGITIZATION WILL UNCOVER INEFFICIENCIES AND CREATE VALUE. BY @MIKEARAUZ, PARTNER AT 10
  11. 4. “ARE PEOPLE USING IT?” 
 IS THE ONLY QUESTION THAT REALLY MATTERS. BY @MIKEARAUZ, PARTNER AT 11
  12. WhatsApp was acquired by Facebook for $19 billion (that’s roughly 1/3 the market cap of Ford Motor Company). For those who are baffled by the size of the deal, look at the number that matters: as of December 2013, WhatsApp had over 400 million active users per month (the population of the United States is roughly 313 million). BY @MIKEARAUZ, PARTNER AT 12
  13. WELL-INTENTIONED EXECUTIVES BUILD A GAUNTLET OF QUESTIONS, INTENDED TO ENSURE SUCCESS, THAT END UP 
 KILLING INNOVATION. YOUR JOB AS A BUSINESS LEADER IS TO ANSWER THIS QUESTION FIRST, AND FAST: ARE PEOPLE USING IT? BY @MIKEARAUZ, PARTNER AT 13
  14. 5. TRYING SOMETHING 
 COSTS LESS THAN NOT TRYING ANYTHING. BY @MIKEARAUZ, PARTNER AT 14
  15. In 2009, Jack Dorsey’s friend James McKelvey, a artisan glass-blower, went to their local Techshop and a month later had a working prototype of what would eventually become Square, the disruptive payments company now valued at over $8 billion. BY @MIKEARAUZ, PARTNER AT 15
  16. THE COST OF INACTION IS HIGHER THAN YOU THINK. IT’S ONLY A MATTER OF TIME UNTIL SOMEONE DISCOVERS THE BREAKTHROUGH SOLUTION THAT WILL DISRUPT YOUR BUSINESS. BY @MIKEARAUZ, PARTNER AT 16
  17. 6. YOU CAN’T CHANGE 
 WHAT YOU DO 
 WITHOUT CHANGING 
 HOW YOU DO IT. BY @MIKEARAUZ, PARTNER AT 17
  18. “We had to think about if we’re going to be in a business that’s changing that quickly, how do we avoid institutionalizing one set of production methods in such a way that we can’t adapt to what’s going to be coming next. …because as useful as they are in the short- term in the long-term they really end up hurting you a lot.” Gabe Newell, co-founder and CEO at Valve, in an interview with the Washington Post, January 2014: BY @MIKEARAUZ, PARTNER AT 18
  19. YOU CAN’T USE YESTERDAY’S WAY OF WORKING TO BUILD TOMORROW’S SOLUTIONS. BY @MIKEARAUZ, PARTNER AT 19
  20. The companies that are leading our economy and shaping our future are working in a completely new way. 
 At Undercurrent, we call these companies responsive organizations, defined by a new set of operating values: BY @MIKEARAUZ, PARTNER AT 20
  21. 7. IF YOU’RE NOT DESIGNING FOR NETWORKS, YOU’RE MISSING THE POINT. BY @MIKEARAUZ, PARTNER AT 21
  22. When Google bought the car navigation app Waze for $966 million, they framed the acquisition in terms of users, not technology: “This fast-growing community of 
 traffic-obsessed drivers is working together to find the best routes from home to work, every day.” Source: http://googleblog.blogspot.com/2013/06/google-maps-and-waze- outsmarting.html BY @MIKEARAUZ, PARTNER AT 22
  23. DIGITAL THINGS DON’T GET USED UP WHEN THEY GET USED. THIS IS WHY FIGURING OUT HOW USERS CAN CREATE VALUE FOR EACH OTHER IS NOW FUNDAMENTAL FOR CREATORS OF DIGITAL PRODUCTS AND SERVICES. BY @MIKEARAUZ, PARTNER AT 23
  24. 8. INNOVATION IS RECOMBINANT, AND SPEED IS THE NEW IP. BY @MIKEARAUZ, PARTNER AT 24
  25. Sir Tim Berners-Lee: “When I say I invented the web, I really just put together the last few pieces out 
 of a construction kit, which had 
 already been made.” BY @MIKEARAUZ, PARTNER AT 25
  26. HUMANITY HAS NEVER HAD MORE WORTHWHILE IDEAS. IT’S NEVER BEEN EASIER TO FIND THEM. AND IT’S NEVER BEEN EASIER TO BRING THEM TO LIFE. THE CHALLENGE IS WHO CAN GET THOSE GOOD IDEAS IN FRONT OF REAL USERS FASTEST. BY @MIKEARAUZ, PARTNER AT 26
  27. 9. YOU CAN’T ESCAPE COMPLEXITY. BY @MIKEARAUZ, PARTNER AT 27
  28. The open-source operating system Linux has evolved into one of the world’s most popular operating systems with a large, diverse and disorganized collection of contributors, free and open access to its source code, and constant iteration and variation of the product. Mostly the exact opposite of Microsoft. BY @MIKEARAUZ, PARTNER AT 28
  29. LIKE A 21ST CENTURY MIDAS, DIGITAL TECHNOLOGY MAKES EVERYTHING IT TOUCHES COMPLEX. SEEKING SIMPLICITY IN THE FACE OF COMPLEXITY IS SIMPLY A FASTER ROUTE TO OBSOLESCENCE. BY @MIKEARAUZ, PARTNER AT 29
  30. AS THE INDUSTRIAL REVOLUTION WAS DEFINED BY RADICAL EFFICIENCY IN PRODUCTION, THE DIGITAL REVOLUTION IS DEFINED 
 BY RADICAL EFFICIENCY 
 IN INFORMATION TRANSMISSION. 10. BY @MIKEARAUZ, PARTNER AT 30
  31. Andrew McAfee and Erik Brynjolfsson, The Second Machine Age: “Computers and other digital advances are doing for mental power— the ability to use our brains to understand and shape our environments— what the steam engine and its descendants did for muscle power.” BY @MIKEARAUZ, PARTNER AT 31
  32. IF YOU’RE RESPONSIBLE FOR A BUSINESS OR INDUSTRY, AND WONDERING WHERE THE WEAKNESSES OR OPPORTUNITIES LIE, LOOK CLOSELY AT THE CRACKS AND CREVICES WHERE INFORMATION IS CURRENTLY TRAPPED, AND HELP IT TO FLOW MORE FREELY. BY @MIKEARAUZ, PARTNER AT 32
  33. TO LEARN MORE READ THE FULL ARTICLE HERE: HTTP://MEDIUM.COM/P/9A889AA170D1 BY @MIKEARAUZ, PARTNER AT 33
  34. CREDITS None of these ideas are mine alone. They are built upon the work and great thinking of many other people who are all infinitely more brilliant than I am. In addition to my inspiring colleagues at Undercurrent (including Aaron Dignan, Clay Parker Jones, Bud Caddell, Jordan Husney, and others) here are some books that I consider to be seminal: ! • Understanding Media by Marshall McLuhan • The Innovator’s Dilemma by Clayton M. Christensen • The Cluetrain Manifesto by Rick Levine, Christopher Locke, Doc Searls, and David Weinberger • Emergence by Steven Johnson • The Wealth of Networks by Yochai Benkler • Here Comes Everybody by Clay Shirky • Complexity: A Guided Tour by Melanie Mitchell • Getting Real by 37Signals • The Second Machine Age by Erik Brynjolfsson and Andrew McAfee BY @MIKEARAUZ, PARTNER AT 34
  35. MIKE ARAUZ Mike is a Partner at Undercurrent, a strategy firm for the 21st century. Mike has helped leaders of global organizations, including GE, PepsiCo, Ford, American Express, and The Bill & Melinda Gates Foundation, understand how technology is disrupting their world and what to do about it. Mike is available for speaking at summits and conferences, as a workshop facilitator, and as a guest writer for print and online business publications. Get in touch:
 http://www.mikearauz.com/

×