Our starting point Penned application and received funding decision back in 2014 Enabling the designer fashion community to understand and adopt technologies that lead to new economic models in the Digital Economy. By 2015 some of the initial digital products and platforms we’d highlighted in our proposal subsequently closed or been acquired by larger retailers looking to expand their market share. Acknowledge that it can be difficult to invest time, energy and money in ‘digital’ We’re interested in this space because the brave new world that is the ‘Digital Economy’ is largely defined, designed and implemented by corporations, tech giants, etc. It is often very difficult to create the room to take an alternate view, and begin to consider different and diverse value propositions – and question its potential application in new contexts.
Imagery - big bang, 01010 Digits, Fast car trails, computer icons! There’s still not widespread agreement on the definition of a digital economy in scholarly literature supporting infrastructure (hardware, software, telecoms, networks, etc.), e-business (how business is conducted, any process that an organization conducts over computer-mediated networks), e-commerce (transfer of goods) But new applications have blurring these boundaries in recent years, adding complexity – for example, cloud computing, social media and internet search, mobile web, smart grids, blurred these boundaries
The important thing to understand about the digital economy. Richard Normann (Swedish management consultant and researcher) view Liberating us from certain constraints offering new opportunities: Time – when things can be done (timing conflicts) Place – where things can be done (no geographical constraints) Actor- who can do what (more democratic) Constellation – with whom it can be done (no seating restrictions)
More than technological innovation – but innovation in business models, ecosystems and the transfer of knowledge and access to markets Come a long way from - Montgomery Ward- first mail order catalogue in 1872, rural farmers, listings take out middle man one-page price list boasting 163 items, which he sent to farmers' cooperatives throughout the rural Midwest – Sears’ mail order catalogue
To today’s on demand e-commerce economy Tommy Hilfiger’s fall 2015 catwalk show is now available to watch via a virtual reality experience in select stores in London & NY. The Digital Economy is challenging this legacy model- Where the business controlled the message and consumers ‘consumed’ what was available, and managing risk meant not much more than a solid business plan, and access to credit. The majority of research in this space is trying to understand this change. Hopefully stimulate a discussion about understand the current state of the digital economy and where it is going and how if effects and could support smaller fashion businesses What is happening to the traditional, linear model What difference does it make that the sector largely trades in physical goods and its craft based.
New models of information – quantified self – data capture and analysis New Mechanisms – new ways of operating New objects – sensors IoT New markets – industry 4.0 – how these things work together in an industry ecosystem Research methodology – scan of all the digital tools, platforms and services that are used or starting to appear in the linear model of the fashion design cycle.
Desk research selective survey – being utilized and having an effect on linear model and fashion design cycle Make available after today Not looking at over 30 – 4 areas. Interested in how you can start to embed digital thinking in your operations, rather than developing products and then working out how to ‘go online’.
Disclaimer* Digital isn’t always the starting point – more important what problems do you have and how could they be solved or successes scaled by digital. Never had a seamless digital experience! Trend insight confuse the two. Operations and product life cycle not just about marketing.
Largely about data collection Quantified Self – choosing products on basis of data they collect. Phone sensors.
In reality, it’s not actually that long ago that most business professionals had little involvement in frontline or behind-the-scenes data collection or analysis. Data science, data analytics, big data, open data Accurately measure performance, maximise efficiency and make informed decisions that drive growth. Build a picture of your product development, or sales strategy that insight not instinct driven – predictive analytics, very sophisticated forecasting.
Data as insightMyriad of ways to connect with consumers in retail framework
What it is doing? Question Value proposition – limted SALES RETAIL/ONLINE, PHYSICAL ENVIRONMENT, B2C, Director to consumer
101 example! Created our 90’s dream! Internet digital economy - “democratizing” influence? In reality they tend to have the opposite effect: they foster concentration Value proposition Whilst Lots of free tools to create your own app, ecommerce, its obviously difficult to get traction
Some of the have led to new ways to open up process of creation Social media – brand partnerships – instagram Live Streaming - Connecting with consumers – new platforms to broadcast which don’t rely on third party platform like twitter Stre.am &You Now Pinterest palletes – Topshop catwalk MyPantone – colour palettes – sharable San Francisco’s Academy of Art University partnered with Flipboard – free magazines fashion journalism and product design
Omni / multiple channels Traditional ecommerce like Net a Porter still take on significant inventory risk and have big infrastructure requirements–Companies like Lyst and Polyvore – created platforms that allow certain users (brands and retailers) to display items for other users (shoppers) to consume, without buying and holding inventory. Businesses are no longer the sole creator of a brand it much to do with the crowd
Leaner, lower-risk collaborative retail model to emerge. Example – crowdfunding, crowdsourcing design Range of fashion focused kick starter / indiegogo sites. the accuracy of determining the real cost of an item. Instead of first designing then estimating demand and finally manufacturing thousands of different styles Turn the whole cycle upside down to let desginers and the crowd have a conversation about the demand. Fashion startups such as Before the Label, I Am La Mode and Out of X use the crowd to provide an alternative to mass manufacturing Responding to a growing demand of personalized and unique clothing. They are also a sales and beta testing – designers get approval to run their designs on the site High hopes crowdfunding on-demand system will cut down on production and inventory issues, resulting in no excess stock or wasted materials
Similar to crowd – sharing / collaborative Monetising latent assets – your empty spare room, seat in your care Consumers don’t need to own things Fashion designers had a reluctance towards rental services Consumers don’t actually access that many brands high end / custom in their life time - designer labels get to be introduced to potential customers on a regular basis. second hand clothes apps These new businesses are not only altering how fashion is distributed, changing what consumer’s understand of what a fashion designer is and what a fashion retailer could be
how these things work together in an industry ecosystem
We talked about the internet creating a new distribution model where individuals and manufactures could bypass retailers and other middle men to sell their products directly to the consumer Digital is definitely changing the traditional wholesale and trade model but not as much as you’d think it would – pops up around 2008 le new black and Joor in 2013 Listed focus on emerging designers – connecting them to retailers / brands Where’s the inventory support for SME’s – few and far between – very few end – end suppliers in this chain. Bundling and unbundling of goods repeatedly – delivery to retail or consumer Try.com
Exiting potential area Huge wave of disruption in manufacturing – as they start to understand the importance of data New buzzwords reflect digitally-enabled technologies that include advances in production, smart products and data analytics. Manufacturers understand each individual item and component all the way through the process, from design to decommission. Early 00’s – United colours of benneton – first to link sales in real-ish time to manufacturing in italy. – Now Zara RFID tags Manufacturers are starting to understand the link between designers and makers is perhaps the biggest pool of value. People who design things and the people who make things are separated. Need technology platform for virtual collaborations and providing digital links between designers and makers. Strong business case for the link.
Hyper-connectivity is driving a move towards mass personalisation of products and services
3D printing provide real tools to help designers make low quantities at low cost Not quite a reality yet, most people don’t realise you can’t create a finished product yet! Equipment is still costly – access.
So much software available to start thinking about new processes Eora- iphone app – + hardware Fusion app Trupik – 3d draping software designs on body Rhino 3d deisgn software Electroloom – mold design in cad –print faric to mold Marvelous designer– sofware gaming Kynttan
Software integrated hardware Knitic OpenKnit
Become even more developed creative producers of technology, rather than passive consumers / collaborators.
Relevance to craft / making Design and Inspiration examples Digital in Product development Skills Gap
Running a business in current industry The creation of new value propositions New economic models Ecosystems Overview open session link
Khan Academy Udemy Udacity General Assembly Digital Business Academy Github, Open Source Platforms, etc.
Connecting Make Works Fab Labs Makerversity DSA Manufacturing FIREup DISC, LCF
Split into 4 groups Introduce Initial thoughts Themed area Nominated person feedback to group Open questions
Four themed areas –nominated person to feedback to group The next session give you an opportunity to share initial thoughts and then we’ll have a good old debate/discussion, facilitated by myself,SB, GM,AH Four themed areas –nominated person to feedback to group
What's Digital about Fashion Design?
What’s digital about
Professor Sandy Black
Mary Jane edwards
Funded by NEMODE Network+
What’s digital about
Mary Jane edwards
Funded by NEMODE Network+
Things are moving at pace…
…But don’t always last!
The digital economy
1. New information models
2. New mechanisms
3. New objects
4. New markets
information - Analysis
knowledge - Dis5lling
Raw information + knowledge
By 2020, information will be used to reinvent, digitalise or eliminate
80% of business processes and products from a decade earlier
data touch points
Matching user intent
Sales direct to consumer
A Move towards Allowing
the market to dictate
what consumers really
• B2b marketplaces
• Wholesale buying platforms
• Online trade show platforms
• Global trade platforms
• Ecommerce solutions
• Inventory and shipping
• Data driven forecasting
The new online middlemen
CLOUD – Mobile – Social – big data – sensors – machine intelligence
Manufacturing generates more data than any other sector of the economy. More
data than healthcare, more data than retail, finance. deloitte
By 2025, the total worth of IoT-enabled technology is
expected to reach $6.2 trillion insight
The use of sensors will grow 700,000% by 2030 sap
center for business insight
Google, project jacquardIntel, curiE Robots Group, MIT Media Lab
3d printing usage will grow 2,000% from 2015 to 2030
SAP Centre for business insight
3d design apps
Eora 3d Microsoft, Fusion app Trupick (brands)
rhino electroloom Marvelous designer
Producers of tech
Skills gaps and lack of brokerage
Gaps in innovation
How to encourage more creative producers and adopters of
technology rather than passive consumers?
How to become the creators of new models?
1. Blurred Lines? How is the transition from wholesale to direct to consumer
retail changing fashion design?
3. What Next? Do we need to reclaim the digital economy?
4. Survival of the fittest? How can we navigate the evolving tech landscape?
2. What now? Where else can we find Inspiration for crafting new business models?
THANKS for your tIME!
The digital economy
Opening up process of creation