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Design to Disrupt: New Digital Competition & Platform Disruption

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Only few organizations wise up to new digital competitors, as they usually come from outside their own sector and are not taken seriously at first. Their allegedly inferior propositions confuse prominent players, who should in fact be the very first to be fully aware of potentially disruptive innovation.

To swing into action rapidly, existing organizations would be well advised to properly analyze anything resembling digital competition. Evidently, there are clear patterns behind the startup success marking a new techno-economic reality. Ecosystems, APIs, and platforms characterize this New Normal where customers have more freedom of choice and better service at lower costs.

These successful disruptors are called two-sided market players, also known as multi-sided platform players. Companies like Uber and Airbnb are getting all the media attention, however there are over 9000 players (and counting) active in almost every industry.

The new VINT report explores the new digital competition and presents a analysis of the success factors of disruption
10 design principles of the new digital competition like:
- Unbundle your organization processes
- APIs first
- Access over ownership
- Building trust with social systems

Published in: Business
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Design to Disrupt: New Digital Competition & Platform Disruption

  1. 1. READ ABOUT THE 10 DESIGN PRINCIPLES OF NEW DIGITAL COMPETION. THE TWO-SIDED MARKET PLAYERS Download the report(s) at labs.sogeti.com/downloads
  2. 2. A leaked report on innovation from NYT says NYT is facing platform competition. That’s why ‘the core’ of the organisation should change, not the periphery.
  3. 3. Another industry, another report, same conclusion: the change is ecosystemic.
  4. 4. Wait + See = Please make me irrelevant
  5. 5. EROOM’s LAW Technology changes exponentially Organisations change logarithmically
  6. 6. Business   as  Usual
 The  New   Normal Bridge Valley     of  Death
  7. 7. design thinking
  8. 8. but What is the
  9. 9. What if monopolies mean prices go down? Jean Tirole Noble Price for economics 2014 on two-sided markets
  10. 10. Two sided Markets
  11. 11. burning platform
  12. 12. Two sided Markets 85 billion app downloads
  13. 13. $ 9,3 billion sales in 1 day
  14. 14. $ 40 billion
  15. 15. For two-sided markets Go to The Mesh
  16. 16. OT IT Thing Creator User ServiceService
  17. 17. „The single biggest reason for companies to fail, is that they overinvest in what is, as opposed to what might be” Gary Hamel
  18. 18. „Institutions will try to solve the probem to which they are the solution” 

  19. 19. 23
  20. 20. @VINT | Vision • Inspiration • Navigation • Trends Basket of indicators: • EBIT Margin • Net Profit Margin DigitalCapability Leadership Capability REVENUE GENERATION EFFICIENCY +6% Basket of indicators: • Revenue / Employee • Fixed Asset Turnover +9% -10%-4% DigitalCapability Leadership Capability PROFITABILITY % +26% +9%-24% -11% DIGITAL MASTERS BEGINNERS FASHIONISTAS CONSERVATIVES DIGITAL MASTERS BEGINNERS FASHIONISTAS CONSERVATIVES
  21. 21. Create a shared transformative vision of the digital future Engage employees at scale to make vision a reality Fuse IT & business communities to build digital skills & transform technology platforms Establish strong digital governance to steer the course TECHNOLOGY VISION ENGAGEMENTGOVERNANCE

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