NILF 2014: Deciphering the 5 generation of digital workers and customers: R “Ray” Wang, Constellation Research, Inc

  • 14,918 views
Uploaded on

 

More in: Technology
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
14,918
On Slideshare
0
From Embeds
0
Number of Embeds
12

Actions

Shares
Downloads
70
Comments
0
Likes
0

Embeds 0

No embeds

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • Traditionally, marketing and sales organizations often work in silos. Studies have shown that such lack of alignment results in significant lost revenue potential and decreased sales effectiveness, as sales reps spend time sorting through leads that are not ready to buy and as marketing teams fail to directly link marketing investments to revenue opportunities. Furthermore, sales reps’ effort to cross sell or upsell is often compromised because they lack insights into customer preferences and complete history.  Today, with the advent of social media and mobile technologies, the amount of customer data available to businesses has exploded exponentially, presenting a great market opportunity for companies to learn about their customers, create effective and engaging strategies and programs and, ultimately, increase sales and marketing effectiveness.  This webcast aims to provide a high level discussion on best practices in today’s digital world and what organizations must keep in mind in order to fully take advantage of the data growth coming from a combination of social , mobile, and cloud technologies. With the right technology and processes in place, companies can dramatically increase revenue potential by adopting best practices in integrating marketing and sales teams using modern marketing and salesforce automation software. 
  • Can you imagine three years ago?Fortune 500 Firms in 1955 vs. 2011; 87% Are Gone52% of the Fortune 500 firms since 2000 are gone2010 – Blackberry’s had a 45% market share vs Apples’ 25% vs Microsoft’s 15% vs Android’s 7% vs Palm’s 5.7%This is a seemingly innocent question. But to truly answer this question, you have to Imagine what’s happened in the past 24 months. Raise your hands if you felt in control or any semblance of control over your profits, revenues, idea creation, new products were introduced, collaboration points, your community, or customer experience? Were you able to effect and affect change? Did you have the right tools to create the conditions to manage the change ahead? Now put yourselves in the mindset of an enterprise or brand. How can you improve your business outcomes?Why do I ask this? Well customers no longer buy technologies. They no longer buy software. They are buying outcomes from you. That’s what they want. Peace of mind outcomes.
  • Can you imagine three years ago?Fortune 500 Firms in 1955 vs. 2011; 87% Are Gone52% of the Fortune 500 firms since 2000 are gone2010 – Blackberry’s had a 45% market share vs Apples’ 25% vs Microsoft’s 15% vs Android’s 7% vs Palm’s 5.7%This is a seemingly innocent question. But to truly answer this question, you have to Imagine what’s happened in the past 24 months. Raise your hands if you felt in control or any semblance of control over your profits, revenues, idea creation, new products were introduced, collaboration points, your community, or customer experience? Were you able to effect and affect change? Did you have the right tools to create the conditions to manage the change ahead? Now put yourselves in the mindset of an enterprise or brand. How can you improve your business outcomes?Why do I ask this? Well customers no longer buy technologies. They no longer buy software. They are buying outcomes from you. That’s what they want. Peace of mind outcomes.
  • 78%
  • The disruptive technologies that impact the enterprise have come from what we’ve all known as the consumerization of IT. These consumer forces will impact the enterprise well into the next decade.Mobile is about the interface. How many of you have a smartphone. 2. 3. okay, everyone look around you, those are the real geeks in the room!Social – network and who we engage – how many of you are on twitter? Facebook? Linkedin?Cloud – information storeBig Data – that’s the brainsVideo/ UC – that’s how we share, interact
  • We see a $19.8B dollar market in OTN by 2020
  • Context byRoleRelationshipOwnership of thingsLocationTimeSentimentIntent
  • 78%
  • Context byRoleRelationshipOwnership of thingsLocationTimeSentimentIntent
  • Context byRoleRelationshipOwnership of thingsLocationTimeSentimentIntent
  • Context byRoleRelationshipOwnership of thingsLocationTimeSentimentIntent
  • Context byRoleRelationshipOwnership of thingsLocationTimeSentimentIntent
  • Context byRoleRelationshipOwnership of thingsLocationTimeSentimentIntent
  • The business model disruption is happening and it’s real
  • The business model disruption is happening and it’s realSiemens is selling peace of mind
  • The business model disruption is happening and it’s real
  • Mobile plays a key role
  • 7. Context provides relevancy. By drawing upon relationships and roles, an individual can have multiple personas and should be treated as such. Interactions should be based on a people-to-people (P2P) approach that eliminates the artificial forced fit B2B and B2C segmentation. Other context drivers include time, location and business process. As deeper insights are revealed through Big Data, sentiment and intent emerge as other advanced context drivers, potentially leading to more accurate prediction. 8. Catalysts inspire action and response. Catalysts help drive you to participate, respond to offers, commit to loyalty programs and pay attention to advertisements. Catalysts target people-centric values and delivery and communication styles. The challenge is to build progressive catalysts to drive consistent advocacy and loyalty. 9. Currencies enable exchange of value and influence behavior. Monetary incentives include cash, bonuses, rewards and rebates. Non-monetary currencies include knowledge, virtual goods, recognition, access and influence. The exchange of value drives successful influence and requires an understanding of the eight previous steps.
  • Google maps w/ traffficTracing and package order satusCrowdsource pricingParyoll dataAd platforms – sentimentContnend delivery entworksDifferentiated Business Offerings – New business models abound everywhere.Drive demandAugment demand with contextual relevant informationCreate new service offeringsReal time traffic updates are another add-onIncrease customer satisfactionbuild networking opportunities, add a new touch point of engagementIntroduce a low cost modeltake out the middle man, deliver the information direct and tailoredInformation BrokeringInformation, either raw or processed, can be sold as a product or service.‘Raw’ informationStock quotesAnalysisTesco for example, is a retailer which sells customer preferences derived from its loyalty programme to third parties (other retailers, FMCG producers).Information PlatformsInformation can also be used to create a platform which is used by targeted audiences. This platform can be offered to third parties who can use this to their own benefit.Market placesCreate lead gen oppsDealmakeruse information to connect dealsAdvertisingGlam Networks.Facebook for instance offers advertisers tools to profile customer groups based on the content of their posts, which enables them to target preferred audiences.
  • Top Ten Connected Applications in 2020 Value to the Connected LifeConnected Car US$600 billionClinical Remote Monitoring US$350 billionAssisted Living US$270 billionHome and Building Security US$250 billionPay-As-You-Drive Car Insurance US$245 billionNew Business Models for Car Usage US$225 billionSmart Meters US$105 billionTraffic Management US$100 billionElectric Vehicle Charging US$75 billionBuilding Automation US$40 billion
  • The potential for augmented reality opens up many doors
  • Political (P) Pressures Point to a Lack of Digital Proficiency in the Political ClassGlobal governments face a confluence of forces with worldwide chronic unemployment, stagnant economic performance, growing social program obligations and continued polarization of political ideology.  A generation of voters are jobless at the beginning of their careers.  OECD statistics show over 73 million or 12.6 percent of global youth are unemployed.  Political trends play a role in the acceleration or hindrance of business disruption.  Amid those forces, three trends emerge as factors that will enable or hinder digital disruption:Existing policy lags the pace of change in technology and new business models.  The impact of digital disruption on the economic, societal and environmental pillars is pushing the limits of today's existing policy and political models.  From privacy to new people-to-people networks, policy has fallen behind the pace of change and political gridlock hurts citizens.  Just recently in the United States, city governments sought to ban sharing-economy leasing models such as Airbnb by restricting how long and what kind of short and long term rentals a private citizen’s could allow on their own property . In another example, the Target customer data breach of late 2013 highlighted how American privacy legislation is woefully inadequate and needs reform. The good news is that in the European Union and elsewhere, the privacy laws  have sharper teeth and enhance innovation without trampling on individual rights.Pay-to-play legislative influence hinders disruptive business models.  The high cost of campaigning for public office creates a kleptocracy in places such as the United States and the European Union.   Paying a lobbyist $10 million to create an economic impact in the billions of dollars makes business sense.  However, the pay-to-play influence model only exacerbates a byzantine set of laws that add to overall business friction through additional accounting, legal and political costs.Technology ignorance plagues the political class in the West.  Across the Western economies, few elected officials have science backgrounds.  Meanwhile, scientists hold eight out of China’s top nine government posts.  The lack of science and engineering fundamentals often hinders digital business discussions and the implications of technology policy are unclear to decision makers, who become timid and dependent on lobbyists and other influencers who peddle biased information. For example, lack of understanding around climate change and pollution control technology creates an emotional discussion instead of an objective scientific method approach. Further, innovative business models often must face entrenched political powers that are, for all intents and purposes, ignorant.  Pls reword. Not clear what you’re trying to say. “for a private citizen’s own property” is confusing. What were city governments trying to do?
  • Economic (E) Trends Exacerbate  Digital Business DisruptionStill reeling from the impact of the global financial crisis of 2008, Western economies have printed their way out of shock by providing short-term liquidity.  Of grave concern, inflation appears around the corner as high debt loads stunt growth.  Meanwhile, China and the resource-rich regions such as Africa, the Middle East, Canada and Australia continue their export-led and infrastructure-fueled economic growth.  Brazil, Russia, India and China (the BRICs) as well as South Africa continue to grow their economies through direct foreign investment while Malaysia, Indonesia, Nigeria and Turkey (the MINTs) emerge onto the global economic scene.  Five economic trends shape the prioritization of investments in digital disruption:An improving economic outlook leads to tightening of cheap money.  Flush with money, central banks around the world must reign in the overall supply of money.  The U.S. Federal Reserve will continue to slow down quantitative easing activities as economic indicators stabilize.  Organizations will continue to borrow while they can as banks begin to raise the cost of capital. But investments will flow to digital business initiatives to help them achieve agility and scale.Investment in the United States remains attractive.  Despite the 13 percent-plus massive growth of M2  money supply in China and the quantitative easing in the U.S., global investors continue to hedge home country investments by making real estate and other high value asset investments in U.S. dollars.  Meanwhile, rising U.S. interest rates and the pullback from quantitative easing will result in declining investment in BRICs and MINTs as investors seek to capitalize on higher returns in the U.S ..Population dynamics play a key role in growth strategies.  Brands focus on rapidly growing markets in Brazil, China, Malaysia, Nigeria, India, Indonesia and Turkey.  According to the International Monetary Fund, the size of emerging market economies surpassed more than half of the world's GDP in 2013.  These markets represent the future of hyper economic growth and are a leading indicator for enterprise growth. Investment in Western economies and more developed economies will continue to remain from flat to up 7.8 percent.Cost of human-based employment drives a push to technology.  Legislative and regulatory burdens on employment lead to increasing investment in technology to automate or eliminate the human factor.  A November 2013 poll from The Wall Street Journal’s Real Time Economics blog showed that 86 percent of organizations did not intend to hire in 2014 . Hiring will be limited to the highly skilled and extremely talented.  Budgets will prioritize human work that can be automated.  Expect automation to go up the stack from manual labor to professional positions such as accountants, lawyers and physicians.Manufacturing returns to being locally based.  Lower energy costs, rising labor rates in previously “low cost” countries and worries about intellectual property drive nearshoring of manufacturing.  In November 2013, the U.K. government’s Manufacturing Advisory Service estimated that 15 percent of companies had recently returned  production to the United Kingdom versus 4 percent that planned to offshore. A Manpower Group survey in September 2013 also showed a return of U.S. manufacturing from China due to a closing wage gap and intellectual property concerns. Automation provides a key enabler in driving down labor rates and union requirements. Mass personalization at scale, the ability to create small production runs tailored to customer needs, reaches proper price points  ,enabling small scale manufacturing to return to home countries.   Another verb?? Accelerate? RW: keeping it. It’s worsening and I want the alliteration =) Say what this is…money supply? RW: yes.  ok? Don’t repeat U.S. interest rates within same sentence RW: okay.  you mean no hiring at all? Or did not intend to increase hiring?  RW: hiring at all Had recently? Give time frame.  RW: reently Pls reword. Highlighted phrase is hard to understand RW: ok this is the term we want to use. The concept is out there.
  • Societal (S) Shifts Showcase the Digital Divide AheadGenerational shifts by age and by digital proficiency will show up in force in 2014. A generation of millennials no longer seeks the same objectives as previous generations.  Lack of upward mobility and opportunity sow the seeds for societal disruption.  Furthermore, a fear of government intrusion along with a need for government programs creates a bipolar view on the role of government.  Hence, organizations must adapt to an ever-changing array of future business models based on dynamic demographic and psycho-graphic  preferences.  The following five broad societal movements shape how individuals behave and play a strong role in influencing business model adoption:Access trumps ownership in a sharing economy.   From car sharing in the late 1990s,  to vacation rentals to collaborative financing, the sharing economy has been inching its way into the forefront of the consumer’s mind.  Since , thought leaders such as Rachel Botsman, Lisa Gansky and Anne-Sophie Novel, have been chronicling the forces, underlying trends and players behind the movement.  Key success factors in this new business model require the identification of underutilized assets, optimization of value through time slicing of access, trading on the goodwill and generosity of others and building a reputation economy. A sharing economy model is not for every industry, yet this trend may affect how products and services companies shift their offerings and business models in the next three to five years.Five generations of customers and workers driven by digital proficiency, not age.  When discussing the future of work, most people immediately jump to the discussion of millennials, Generation Y, Generation X, Baby Boomers, post war, etc.  However, under a shift to digital business, the generations are defined differently. .  This segmentation describes how proficient people are with digital technologies and digital culture.  The five generations include digital natives, digital immigrants, digital voyeurs, digital holdouts and the digital disengaged.Sacrificing privacy for convenience in a post-NSA/Snowden world.  The proliferation of digital exhaust - the plume of signals and artifacts left behind in our digital world - begs the questions of data ownership and privacy.  As organizations move toward data-driven business models, consumers and enterprises must find a balance between individual privacy rights and the desire to deliver prediction and mass personalization at scale.  Moreover, trust and transparency become paramount, as authenticity remains the holy grail of corporate and personal brands. There is a battle for Personally Identifiable Information (PII) at the heart of many digital business models; consumer awareness of how their PII fuels business will lead to agitation for transparency and a better deal. One will expect to see new privacy compacts emerge!Generational and class warfare favor redistribution programs.  A digital divide pits those succeeding in a digital economy and those shackled by inequality of access.  While equal outcomes are not expected, society must provide access and equal opportunity.  Meanwhile generational warfare has arrived, as younger individuals may have to subsidize older individuals for healthcare, social programs, and other government obligations.  Concurrently, the lack of jobs (e.g. 50% unemployment in Spain for those under the age of 26) for the younger generation will disenfranchise a generation. Those more digitally enabled may have to subsidized those less so or be bullied into providing more digital opportunities.Resentment and backlash emerge toward Silicon Valley for disruptive technologies and business models.  Societies now realize the good, the bad and the ugly with how disruptive technologies can affect business models.  Expect a growing backlash against Silicon Valley, the venture capital firms, technocrats and tech geeks who decimate high paying  jobs and businesses using technology as a weapon without considering the human toll.  In addition, the growing gap in wealth and the increase in power allows Silicon Valley to reshape the world to its needs. Similar to the Occupy movements against Wall Street, these movements represent the tip of the iceberg in social unrest and populist action. Can you just say psychological? RW: no. psychographic is the term. Did the car sharing start that early or was it more like in the 2000s or 2010s? maybe do without a year since the others mentioned don’t have dates RW it started in the 1990’s. or earlier if you think about ride share in Berkley =) Give exact year or just say in recent years. Late 2000s would be like 2080, 2090 RW: this is fine. Delete high margin, I think RW: I think it’s important to say high paying? Let’s try that.
  • Technological (T) Trends Boost Digital OpportunitiesImportant pillars of digital disruption begin with social, mobile, cloud, Big Data analytics and unified communications.  The convergence of these pillars provides the key to future innovations.  The technology shifts that present opportunities to create new business models are also the same opportunities that disrupt existing systems. While advanced materials, clean energy and personal genomics are key disruptive areas, Constellation selects three technological shifts powering digital business disruption: Systems of engagement to systems of mass personalization at scale that deliver relevancy. The shift from analog to transactional systems led to a wave of automation-driven efficiencies in the past century. Today, engagement systems move toward experiential systems that deliver massive contextual relevancy at scale, create role tailored communication styles, deliver bionic user experiences, and move at right time scale.  The shift to systems that deliver mass personalization at scale is now underway  (see Figure 2). These systems start with an outcome-driven design point, solve delivery of massive individual scale , craft personalized conversations, interface with human APIs  and enable people-to-people networks. Key technologies include 3D printers, ad technologies, augmented reality, context engines, crypto currencies , identity systems, facial recognition, payment technologies, digital wallets and personal clouds.Isolated networks to a connected world of sensor-based and analytical ecosystems that harness Big Data. In both the consumer and enterprise worlds, smart machines and wearables provide new types of sensors and add to the mix of Big Data available to create new insights. Constellation estimates that as many as 200 million smart wearables will ship by 2017. These include bracelets, watches, eyewear and other devices with sensors. Data from equipment such as automobiles and trucks, medical devices, household appliances as well as power generators and building management systems can provide opportunities to improve operational efficiencies, create new business models and identify new usage patterns. These systems will not only communicate with each other, but also interface with people – overtly and covertly. The Internet of Things moves from abstract concept to a living and breathing machine-to-machine mesh network interfaced with humanity. By 2020, a global market for a few billion cellphone Subscribe ID Modules (SIMs) swells to 100 billion Machine ID Modules (MIMs).   Technologies include 100 gigabyte optical networks, advanced robotics and manufacturing, building management systems, MIMS , geo-location drones, self-driving cars, smart grids and software- defined networks. There is a quantum jump in the quantity and quality of information coursing through the digital economy. Big Data business models lie in front of us.Powerful yet static systems to cognitive systems that augment humanity. Cognitive computing is more than a new category.  Cognitive systems represent a convergence of artificial intelligence, natural language processing, dynamic learning, and hypothesis generation to render vast quantities of data intelligible to help humans make better decisions. The ability to self-learn  enables continuously reprogramming.  These advancements represent a new class of technology to enable human and machine-guided decisions. Cognitive computing drives augmented humanity where the sum of our collective insights and data can be served up at the right time in the right context.   Technologies include facial recognition, human APIs, machine learning, natural language processing and self-learning algorithms. Please rewrite this highlighted sentence. Vocab here is hard to understand. Need to define what an engagement system and experiential systems are. This whole first bullet point is hard to understand. RW: these are terms as defined in the figure. We’re coining these terms so I'm holding to this. It’s a summary of figure 2 and engagement systems.  IMPORTANT: Mass personalization at scale keeps coming up throughout paper. But as a reader, I don’t know what it means. Can you explain either here or even better higher up in the paper? RW: I did in this round of eidts. Hope you saw it now. Rephrase. Do you mean can deliver personalized services on a massive scale?  RW: no. pleaes keep. Not sure what human APIs are… RW: The audience will understand the term.. Not sure what crypto currencies are…do you mean digital currencies? RW: crypto currencies are the secure versions of digital currencies today. Give time frame RW: thanks. 2020 Spell outRW: we already did above. Keep MIMS. It’s like SIM Card. Not sure what self-learn is. Can you briefly say? RW: the computer is self learning along the way like a human does.  At the right time and in the right context? RW: real time – right away but a floodright time - contextually relevant delivery of information
  • Environmental (E) Factors Frame Long-Term ScenariosWhile climate change often remains a key driver, other environmental factors in creating sustainable initiatives will focus on operational efficiencies and sustainable policies. Environmental factors around zero green field production, hazardous waste tracing and complete production life cycle will also play a role in plans for digital disruption:Reduction of consumption and push for conservation continues . Despite the lower cost of energy, organizations still seek operational efficiencies to reduce long-term operating cost structures.Smart grid optimization using Big Data will challenge current notions on power usage and consumption efficiency. One example in transportation includes smart cars, smart road infrastructure and self-driving vehicles that optimize routes based on load, weather, equipment wear. In building automation, expect heating, ventilation and air conditioning (HVAC) systems to optimize based on surrounding conditions such as temperature, ambient lighting, wind and renewable power mix. Cloud data centers will seek greater efficiencies as requirements increase exponentially and co-location of data centers increases. Sustainable manufacturing processes are now vogue. Factoring in the tracing of hazardous waste to water consumption to carbon footprint, the constraints of regulatory measures force organizations to optimize for green initiatives. Organizations will also improve inventory optimization. Paper tracking shifts to digital tracking. Monitoring of systems shifts from analog measures to digital instrumentation. Reword. Isn’t reduction of consumption the same as conservation? Maybe say: Reduction of consumption AND conservation continues. RW: true. Need to find a replacement word for continue as it’s repeated in the next bullet.
  • Legislative (L) Lethargy Drives Knee Jerk ReactionsAround the world, voters show low approval rates of their legislative bodies. The January 2013 University of Toronto World Values Survey showed that public confidence in parliaments has declined in similar country types  over the last 20 years. The confidence rating declined from 47 percent of respondents in the 1980s to 39 percent in the 2000s, reflecting dropping levels of trust and engagement. The populace is more critical of traditional hierarchical institutions. Consequently, legislative bodies feel compelled to overreact in an effort to appear responsive and to court voters. The current issues around digital business disruption provide much fodder for overzealous legislation and drive greater scrutiny  of new business models in the year ahead. Individual freedoms and privacy take center stage. The Edward Snowden/NSA leaks have had a profound impact on how the world perceives privacy and the powers of government to impinge on personal affairs. A poll on privacy perceptions by Reuters in November 2013 showed that 70 percent of Germans and 54 percent of Americans opposed wholesale government spying on citizens. The public will push for privacy protection and legislation. The politicians will jump at the opportunity to appear proactive in this issue, even though they have mostly been complicit. At the same time, people are becoming aware of mass surveillance by business, and regulators and legislators will seek to strengthen  consumer rights in the face of commercial exploitation of Big Data.Scarcity of governmental revenue drives excuses to create taxation opportunities. Any revenue generating industry can expect politicians to target it for future taxation. A lack of funding, increase in unfunded public obligations and an overall inability to control costs have legislatures prioritizing selective taxation. An Atlas Shrugged scenario has emerged in which the productive class is punished for success and the looters and moochers expect to be taken care of.  Sadly, arguments for expanded legalization of narcotics will continue to cover short-term revenue at the expense of the long-term health of citizens.Expect more legislation to address digital divide. Months prior to The World Economic Forum’s January Davos event and the U.S. President’s 2014 State of the Union speech, the issue of income inequality has been raised as a global concern. The British humanitarian group Oxfam International’s 2014 report showed that the combined wealth of the richest 1 percent of the population owns about 46 percent of global wealth. The total wealth of the richest 1 percent  is $100 trillion – about 65 times the total wealth of the bottom half of the population.Politicians are reacting to the global call to fight poverty with more short-term approaches such as income redistribution and more mid-term approaches such as job creation. However, a recent study by, The Equality of Opportunity Project , done by academics from Harvard University and the University of California Berkeley, stated: “Contrary to popular perception, economic mobility has not changed significantly over time; however, it is consistently lower in the U.S. than in most developed countries”. The rungs have grown in length but movement among the rungs has remained the same.  Reader doesn’t know who peer countries are. Can you say confidence declined in # of countries, or in most countries or many countries?  RW: will explain.  Greater scrutiny of legislatures? RW: of disruptive business models Seek to strengthen? RW: correct. Are you sure you want to be this extreme? Other words besides looters and moochers?  RW: used in the book by Ann Rynd Ok?RW: yes. I believe this study was published by both Harvard and UC Berkeley RW: I think so. Thank you. BTW, we have Raj Chetty coming to the event next year =)  http://www.equality-of-opportunity.org/  That’s not really what the quote says. Could delete the sentence. I noticed that the Harvard/Cal study is only about the U.S. but you also talk about global poverty in the previous sentence. RW: The study did say that. I talked to Raj on the phone and then listened to the NPR interview.
  • 1. Simple. Solutions should embody design thinking at the outset. Technology should not require a manual. Solutions should be easy to use and self-service. 2. Scalable. Solutions should flex up and flex down as demand changes. Technology must work in a wide range of environments.3. Safe. Organizations expect these solutions to not only integrate with ease but also not to harm existing systems or jeopardize how users perform daily work and operations. New technology must not adversely impact another proven system. 4. Secure. These solutions should pass encryption requirements, prevent data intrusion, and protect key intellectual property assets. Resources must be invested to fend off internal and external digital threats. 5. Sustainable. Consumer technologies must meet requirements for flexibility and adaptability over longer periods of time (e.g. 7 to 10 years). Platforms must allow users to extend and expand their functionality. Solutions should be extensible. 6. Sexy. Solutions must draw passion among users. Users must enjoy using the software.
  • Provider Provides commodity IT services; executes across a limited scope; project orientedEnabler Enables improvement via broad portfolio of IT services; deep specializations in select areas; reactive response to new project requestsCatalyst Initiates achievement of business and IT operational improvements; proven experiences; proactive approach to solution developmentAdvisor Advises and recommends areas for business impact; delivers the larger perspective; delivers trusted adviceInnovator Inspires game changing transformation, conceives and designs innovation; applies disruptive forces; leads and evangelizesCreator Develops IP for the marketplace. IP can be software, products, or even information services
  • Google maps w/ traffficTracing and package order satusCrowdsource pricingParyoll dataAd platforms – sentimentContnend delivery entworksDifferentiated Business Offerings – New business models abound everywhere.Drive demandAugment demand with contextual relevant informationCreate new service offeringsReal time traffic updates are another add-onIncrease customer satisfactionbuild networking opportunities, add a new touch point of engagementIntroduce a low cost modeltake out the middle man, deliver the information direct and tailoredInformation BrokeringInformation, either raw or processed, can be sold as a product or service.‘Raw’ informationStock quotesAnalysisTesco for example, is a retailer which sells customer preferences derived from its loyalty programme to third parties (other retailers, FMCG producers).Information PlatformsInformation can also be used to create a platform which is used by targeted audiences. This platform can be offered to third parties who can use this to their own benefit.Market placesCreate lead gen oppsDealmakeruse information to connect dealsAdvertisingGlam Networks.Facebook for instance offers advertisers tools to profile customer groups based on the content of their posts, which enables them to target preferred audiences.

Transcript

  • 1. Deciphering the 5 generation of digital workers and customers A Futurist View Ahead On Digital Disruption February 2014 R “Ray” Wang Chairman & Principal Analyst (@rwang0) © 2010 - 2014 Constellation Research, Inc. All rights reserved. TM
  • 2. 52% of the Fortune 500 firms since 2000 are gone © 2010 - 2014 Constellation Research, Inc. All rights reserved. 2
  • 3. Where will your business be in 2015? © 2010 - 2014 Constellation Research, Inc. All rights reserved. 3
  • 4. 1. Macro trends 2. Dynamic work force 3. Disruptive tech adoption 4. New digital business models © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 5. The answers to these questions have massively changed Where you work? When you work? How you work? © 2010 - 2014 Constellation Research, Inc. All rights reserved. What you work on? Why you work? 5
  • 6. Tech convergence powers digital disruption Mobile Social Cloud Big Data Video Design Thinking Inspired User Experience © 2010 - 2014 Constellation Research, Inc. All rights reserved. 6
  • 7. More power in your handset than there was to send a man to the moon © 2011 - 2013 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 7
  • 8. How customers use social media is one indication of digital proficiency. Twitter – I need to pee LinkedIn – hire me to pee Facebook – I pee’d Path – watch me pee privately Google+ - More pee in circles You Tube – Watch me pee FourSquare – I’m peeing here Vine – Watch my pee loop Pinterest – My pee scrapbook SnapChat – I have no proof I pee’d Instagram – My pee in sepia Jelly – Does this look like pee? © 2011 - 2014 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 8
  • 9. Richer user experience and user productivity Minimal upgrade hassles Rapid IT implementation and optional higher quality deployment The Cloud Is The Innovation Platform Access to the “always-on” SaaS tools regardless of location More frequent cycles of innovation Anytime scalability and dynamic capacity © 2010 - 2014 Constellation Research, Inc. All rights reserved. Subscription pricing
  • 10. Signals from social, mobile, location, payments, network intelligence drive context Big Data © 2010 - 2014 Constellation Research, Inc. All rights reserved. 10
  • 11. Digital disruption is more than just a technology shift. It’s about business models © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 12. Incremental innovation is normal © 2010 - 2014 Constellation Research, Inc. All rights reserved. 12
  • 13. Transformational innovation is breakthrough © 2010 - 2014 Constellation Research, Inc. All rights reserved. 13
  • 14. Pace of change is fierce as business models converge © 2010 - 2014 Constellation Research, Inc. All rights reserved. 14
  • 15. Those that fail will fall far behind © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 16. Five Generations Of Digital © 2010 - 2014 Constellation Research, Inc. All rights reserved. 16
  • 17. Age is not the factor. Digital proficiency brings different expectations and values Digital Natives Digital Immigrants Digital Holdouts © 2010 - 2014 Constellation Research, Inc. All rights reserved. Digital Voyeurs Digital Disengaged 17
  • 18. Digital natives grew up with the internet © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 19. Digital immigrants bridge the analog and digital worlds with ease © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 20. Digital voyeurs peer in from the outside © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 21. Digital holdouts will begrudgingly be forced © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 22. Digitally disengaged worry about digital exhaust © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 23. The Battle For Experiences And Outcomes © 2010 - 2014 Constellation Research, Inc. All rights reserved. 23
  • 24. Transform business models © 2010 - 2014 Constellation Research, Inc. All rights reserved. 24
  • 25. Siemens doesn’t sell imaging systems © 2010 - 2014 Constellation Research, Inc. All rights reserved. 25
  • 26. Disney doesn’t sell theme park tickets © 2010 - 2014 Constellation Research, Inc. All rights reserved. 26
  • 27. The business model shift is here and cloud plays a key role • Product companies give away product for service revenues. • Service based businesses sell experiences at varying price points and service levels. • Experience based businesses selling business models • Business model companies sell peace of mind. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 27
  • 28. Customers seek outcomes not products Improve relevancy Influence buying behavior Generate referrals Drive conversion rates Increase attach rates Grow lifetime value Reduce churn Improve customer satisfaction Improve overall engagement Optimize acquisition costs Deliver a 360 view of the customer Support end to end outcomes © 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 28
  • 29. Big data plays a key role in driving context and right time relevancy Insight Information & Orchestration Data Sources • • • • • • • • Physical Virtual Machine Contextual • • • • • • • • Next best action Prevention Suggestion No action Performance Deduction Inference Prediction Technology Driven Line of Business Driven Decisions & Actions Structured Semi-structured Unstructured Streams © 2013 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 30. Context provides relevancy from real time to right time Location Time Relationships Roles Business process Sentiment Context Intent © 2012 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 30
  • 31. The Rise of Big Data Business Models © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 32. Big data business models emerge Information based differentiation Information brokering Information based business platforms Drive demand Raw information Marketplaces Analysis and insights Deal making Benchmarking Advertising Create new service offerings Improve c-sat Drive lower cost models © 2011 - 2013 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 32
  • 33. Connected worlds and collaboration rely on big data and context © 2010 - 2014 Constellation Research, Inc. All rights reserved. 33
  • 34. Proactive maintenance is all contextual Source: GE © 2010 - 2014 Constellation Research, Inc. All rights reserved. 34
  • 35. Augmented reality opens up possibilities © 2010 - 2014 Constellation Research, Inc. All rights reserved. 35
  • 36. Matrix Commerce describes a buyer centric world Channels Demand signals Big data Buyer Centricity Supply chains Enablers Payment options © 2011 - 2013 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 37. Applying the Futurist Framework © 2010 - 2014 Constellation Research, Inc. All rights reserved.
  • 38. 2014 Outlook: A Futurist Framwork Political Legislative Economic Environment Societal Technology © 2010 - 2014 Constellation Research, Inc. All rights reserved. 38
  • 39. Political (P) Pressures Point to a Lack of Digital Proficiency in the Political Class Existing policy lags the pace of change in technology and new business models © 2010 - 2014 Constellation Research, Inc. All rights reserved. Pay-to-play legislative influence hinders disruptive business models Technology ignorance plagues the political class in the West 39
  • 40. Economic (E) Trends Exacerbate Digital Business Disruption An improving economic outlook leads to tightening of cheap money Investment in the United States remains attractive © 2010 - 2014 Constellation Research, Inc. All rights reserved. Population dynamics play a key role in growth strategies Cost of human-based employment drives a push to technology. Manufacturing returns to being locally based. 40
  • 41. Societal (S) Shifts Showcase the Digital Divide Ahead Access trumps ownership in a sharing economy. Five generations of customers and workers driven by digital proficiency, not age © 2010 - 2014 Constellation Research, Inc. All rights reserved. Sacrificing privacy for convenience in a postNSA/Snowden world Generational and class warfare favor redistribution programs Resentment and backlash emerge toward Silicon Valley for disruptive technologies and business models 41
  • 42. Technological (T) Trends Boost Digital Opportunities Systems of engagement to systems of mass personalization at scale that deliver relevancy © 2010 - 2014 Constellation Research, Inc. All rights reserved. Isolated networks to a connected world of sensor-based and analytical ecosystems that harness Big Data Powerful yet static systems to cognitive systems that augment humanity 42
  • 43. Environmental (E) Factors Frame LongTerm Scenarios Reduction of consumption and push for conservation continues © 2010 - 2014 Constellation Research, Inc. All rights reserved. Sustainable manufacturing processes are now vogue. 43
  • 44. Legislative (L) Lethargy Drives Knee Jerk Reactions Individual freedoms and privacy take center stage © 2010 - 2014 Constellation Research, Inc. All rights reserved. Scarcity of governmental revenue drives excuses to create taxation opportunities Expect more legislation to address digital divide 44
  • 45. Next Steps © 2010 - 2014 Constellation Research, Inc. All rights reserved. 45
  • 46. “Begin with the end in mind” © 2010 - 2014 Constellation Research, Inc. All rights reserved. 46
  • 47. 47 Progress from catalyst to co-creator GREATEST VALUE Co-creator Develops IP for the marketplace. IP can be software, products, or even information services Inspires game changing transformation, conceives and designs innovation; applies disruptive forces; leads and evangelizes Advises and recommends areas for business impact; delivers the larger perspective; delivers trusted advice Innovator Advisor Catalyst Initiates achievement of business and IT operational improvements; proven experiences; proactive approach to solution development Enables improvement via broad portfolio of IT services; deep specializations in select areas; reactive response to new project requests Provides commodity IT services; executes across a limited scope; project oriented Enabler LOWEST VALUE Provider © 2009 - 2013 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 47
  • 48. Opportunities abound for owning the entire value chain Design Services Products Mobile Cloud Outcomes Build On-premises Resold Cost plus Operate Gain share Rev share Owned IP Maintain Leased IP Assumed IP Sale of IP assets Transfer Share of IP asset © 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved. © 2010 - 2014 Constellation Research, Inc. All rights reserved. 48
  • 49. Complex algorithms Simple rules Business Model © 2010 - 2014 Constellation Research, Inc. All rights reserved. Industry Standards Process Innovation Center Level of Differentiation Task Center of Excellence Complexity of Work New business models should be considered across these 3 axes Decision making 49
  • 50. Questions And Answers © 2010 - 2014 Constellation Research, Inc. All rights reserved. 50
  • 51. Thank you R “Ray” Wang 650.918.6619 R@ConstellationR.com Twitter: @rwang0 http://blog.softwareinsider.org www.ConstellationR.com © 2010 - 2014 Constellation Research, Inc. All rights reserved. 51
  • 52. TM San Francisco | Andalucia | Belfast | Boston | Chicago | Colorado Springs | Cupertino | Denver | Irvine | London | Madrid New York | NOVA |Pune | Sacramento | Santa Monica | Sedona | Sydney | Tokyo | Toronto | Washington, D.C. © 2010 - 2014 Constellation Research, Inc. All rights reserved. www.ConstellationR.com