1. The Challenges and Opportunities
of Business in the Disruptive Tech Era
Closing Keynote by Dion Hinchcliffe (@dhinchcliffe)

2. Introduction Spring 2012
Dion Hinchcliffe
• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• ebizQ’s Next-Generation Enterprises
•
http://www.ebizq.net/blogs/enterprise
•• Chief Strategy Officer
http://dachisgroup.com
• mailto:dion.hinchcliffe@dachisgroup.com
• : @dhinchcliffe
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3. To continue this discussion (and for slides):
Hashtag: #tech12 gh1
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4. Dachis Group
The good news: Technology is driving business productivity
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5. Dachis Group
But is this coming from traditional IT?
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6. Dachis Group
Is IT even leading innovation today?
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7. Dachis Group
Yet 60% of CIOs believe they should be driving
growth and productivity.
Source: Deloitte Survey, 2011
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8. Dachis Group
But technology change is happening faster
than ever before
• A tsunami of new mobile devices and technologies
• A vast wave of social media
• The rumbles of cloud computing and SaaS
• The shift to DIY
• A flood of Big Data
• Consumerization!
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9. Dachis Group
A perfect storm of technology change
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10. Dachis Group
Happening almost all at once
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11. Dachis Group
Pervasive disruption is here...
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12. Dachis Group
Another Way of
Looking At All This
World
Workers
IT
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13. Dachis Group
New Digital Engagement
Channels Are The Focus
And where
the value is...
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14. Dachis Group
The channel shift has been global
1.3
From: Social Business By Design, 2012 billon
people
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15. Dachis Group
Yet businesses are still fairly immature with digital
Maturing
Competent
Webinars
online video
big data gamification
direct mail P2P video cloud
social media mobile
apps
Immature
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16. Dachis Group
Is all this change worth it?
Pace of Technology Change
Life Expectancy of S&P 500 Company
Human Population Growth
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17. Dachis Group
Key data point #1: Mobile
• Smart mobile devices
outshipped PCs in early 2011
• Tablets are expected to on par
with PCs by 2015
• Smart mobility strategies
(particularly the iPad) have now
become a top priority of most
Fortune 500 CIOs
• Global mobile data going
geometric is going to be the
largest challenge to growth and
use
• App stores are creating all new
conduits between IT suppliers
and workers
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18. Dachis Group
Mobile Internet Ramping Up Faster Than
Desktop Internet by 5x
Source: Mary Meeker, Morgan Stanley
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19. Mobile Business Strategy | June 2010
Channel Fragmentation Is Now The Norm
+
400 social networks with over 1 million users = 2 billion mobile Internet users + 100 million
aggregate audience of about 900 million next-gen smart phone users across hundreds of
device types
Have Become The De Facto Primary Channels for
Customer and Worker Engagement
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20. Dachis Group
The Risks of Inaction
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21. Dachis Group
Opportunity - The Stories
• Augmented Reality
• Real-time Translation
• The “Taxi” Button
• Multi-point Video Conferencing
• The CRM “lite” app & “walking the line”
• Business intelligence
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22. Dachis Group
The Smart Mobility Lesson
• Mobility isn’t just about computing that can
move around
• It’s a fundamental re-invention of computing
• All new possibilities now exist
• We must reinvent our businesses around
what these new platforms make possible
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23. Dachis Group
Why Smart Mobility is qualitatively different
• Sensors (and lots of them)
• Always connected
• Location awareness in 3D space
• App stores
• Long battery life
• Always on
• Touch-based interfaces
• Voice control
• New operating systems
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24. Dachis Group
The Take-Aways for Mobile
• Mobile first, mobile apps, on any device
(BYOD, BYOA)
• Build the “button” for your business
• Enable customers and workers to self-
service with apps and data
• Rethink business solutions
for what mobile devices are
uniquely capable of
• And do it quickly, though
you do have a (small)
window of opportunity
to learn
Do this and avoid smart mobility
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25. Dachis Group
Key data point #2
The Adoption Rates of E-mail, Social Networks, and E2.0
• Social is now the
dominant form of 1B
Internet 100%
communication on projected
the planet 750M 75%
Enterprises
Global Users
Percent of
• Enterprises are 2-4 imate
years behind the high est
50%
rest of the world. 500M
low estimat
e
• Yet data shows 25%
that revenue of 250M
social businesses
2006 2007 2008 2009 2010 2011
is 20+% higher on
average. Consumer
Social E-mail Enterprise 2.0
Profitability is Networks
better too. Sources: comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen
Norman Group, Social Business Council, NetStrategy/JMC
- Source: McKinsey
and Frost & Sullivan
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26. Dachis Group
Hundreds of public social networks...
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...channel fragmentation 26

27. Recent Examples of Social Media Transformation
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28. Dachis Group
Status as of December, 2011
Source: Alcatel-Lucent
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29. Dachis Group
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30. Dachis Group
21% increase in bottom line in Q4 2011
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31. Dachis Group
“We have a very specific, very
Legal Industry: Case Study educated group of people who are
going through the biggest crises of
their lives, all with the same needs,
• Roberts & Durkee all needing the same information…
• A Florida based law firm and I needed to be able to get that
specializing in product information out in public very
liability, construction defects & quickly.”
commercial & insurance litigation
• Wanted to get the word out about the 2001 China
toxic drywall situation
• Employed a sophisticated multi-channel social
media outreach program
• Social media discussions of the issue led to high
SEO and stream of prospects needing help
• Led to over hundred major new cases in a short
time
• “We get about half of our new cases through our
blog.” - David Durkee, Managing Partner
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32. Dachis Group
Organizations that
extensively use social
media have 1.6 times
higher profit growth.
-Frost and Sullivan
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33. Dachis Group
Results for non-profits as well
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34. Dachis Group
Investments are still nascent for non-profits
• 98% have Facebook page with average
community size of over 8k fans.
• Average Facebook and Twitter communities
grew by 30% and 81%, respectively.
• Average value of a Facebook Like is $214.81
• 73% allocate 1/2 a full time employee to
managing social networking activities.
• 43% budget $0 for their social networking
activities.
• The top 3 factors for success are: Strategy,
prioritization, dedicated staff
Blackbaud Survey, 2012
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35. Dachis Group
Fully social organizations get outsized benefits
Source: 2011 McKinsey Web 2.0 Survey
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36. Dachis Group
The biggest challenge: Engaging at scale
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37. Dachis Group
The Cloud Is Increasingly Subversive
• It’s in our worker’s homes
• It’s on their laptops and PC at work
• It’s in our worker’s pockets
• It’s the world’s largest IT department
• It has all the data
• It has all the apps
• It has all the people
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38. Dachis Group
A new mindset has arrived: Consumerization
• “It’s not so hard, I can do this myself.” DIY
• “There’s an app for that.”
• “I’ll just install this myself.”
• “What’s the URL for that?”
• “We’ll ask for forgiveness instead of permission.”
• “This app is way too hard to use. I’ll use my own.”
Simple Fast Easy
And Works
The Way
They Want It To
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39. Dachis Group
A tidal wave of data
• 80-90% of IT
information is not
accessible
• The amount of
information today is
just a trickle
compared to what it
will be in 2-3 years
• It will require all new
technologies and
skills that IT
departments don’t
have
• Google Search and
Analytics has taught
all of us how easy it
should be
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40. Dachis Group
Our information landscape is now measured in
millions of exabytes
1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes
• Social ecosystems are largely responsible today.
• Soon it will be sensors that are the dominant data
source.
• The good news: Information is no longer
submerged.
• However, it is increasingly becoming an onslaught.
Visible
Knowledge Us
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41. Dachis Group
“Information overload is not the problem. It’s
filter failure.” - Clay Shirky
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42. Dachis Group
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43. Dachis Group
Getting value from Big Data
• Obtain simple, easy to use business
intelligence tools anyone can use
- Don’t forget Google is a big data app
• Should be cross silo
• Must integrate internal
and external data
• Must provide actionable business-level insights,
not just raw stats
• Some existing BI tools can do this
• Then “Moneyball” your business processes
• But brand new services will typically bring this to
your organization
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44. Industry: Finance
Last year, WiseWindow, a syndicated data provider, provided its
The Story: real-time social media sentiment measurement technology, Mobi,
across Bloomberg's network of 300,000 desktop terminals.
WiseWindow showed social media sentiment correlated with stock
returns, saying “Only the aggregate opinions from ALL sources
The Motivation: are truly predictive of an industry's stock prices." Their social
data analysis was found to boost investment returns by over
30% annually.

45. Industry: Disaster Management
In 2011, when the 5.8 magnitude earthquake hit Virginia, Twitter
The Story: turned out to be the first and richest source of data, even over
the official U.S. Geologic Survey.
Many visualizations have been created to show how the
information about natural disaster (see the Wall Street Journal
The Motivation: example below, on the Virginia earthquake) The U.S. Geologic
Survey is now exploring how to use social media to augment its
own reports, which take 2-20 minutes to issue.

46. Industry: Telecommunications
T-Mobile wanted to get out ahead of customer defections to
The Story: other carriers. They needed an accurate and scalable source of
information. They looked to social media.
The firm integrated big data across their IT systems, using near
The Results: real-time the analysis of 33M customer data records, web logs,
billing data and social media information. The result: The company
was able to cut customer defections in half in a single quarter.
Source: Financial Times

47. So. How Do We Get There?
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48. Dachis Group
For IT, tech change today is nearly unsustainable
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49. Dachis Group
Rethinking tech adoption
• Ignoring technology change isn’t the
answer
• Maintaining backlogs isn’t the answer
• Giving up isn’t the answer
• Proceeding in the same direction isn’t the
answer
• Letting everyone do whatever they want
isn’t the answer
• Should we look at new models for IT?
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50. Dachis Group
Facing Reality:
IT is becoming pervasive and user-driven
• In 2000, only 10% of IT was unsanctioned
or outside of central control
• Today that’s 30% and climbing quickly.
CoIT
Traditional
IT
2000 2010 2013
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51. Dachis Group
We Must Become Resilient to Constant Change
There is great economic and social value
in achieving this (in pink above)
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52. Dachis Group
How do we design for loss of control?
• “Make change an integral function. Native.”
- JP Rangaswami
frequent
adaptive
course cycles of
corrections change
refinement
growth
disruption
renewal
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53. Dachis Group
The Future of IT: Consumerization & Cooperation
• Broad enterprise uptake of consumer tech
• Business-led solutions with IT support • Consumerization
CoIT • Disruptive software distribution models
• IT as enabling business infrastructure of the workplace
•
• Exponential increases in apps/devices
• Decentralized governance Rise of shadow IT
pressure to
change (10% ten years
Tec Social Computing ago, nearly a 3rd
today)
h
Consumer Tech
Enterprise Evolution
nol
•
ogic
Shadow IT Adoption SaaS makes
al
narrowing
Cloud Computing/SaaS enterprise cloud
Dis
gap
apps just a URL
rup
Next-Gen Smartphones
away
tion
App Stores
• Smartphones the
The Business/IT new “IT dept in
Divide
Line control vs. progress your pocket”
of
profit center vs.
overhead
change backlog
IT
Dept.
• Tech savvy business
Business lack of alignment users leading the
unlike competencies
differing priorities charge with their
Common Ground own vision

54. Dachis Group
Getting There
• Option #1: Don’t change. New tech will
route around you.
• Option #2: Deliberately give up all
non-essential control.
- But make it secure and safe.
• Empower workers and business partners on the edge:
It fundamentally changes what’s possible
• Give everyone simple, easy to understand rules of
CoIT engagement for social, mobile, and cloud.
• Lay the foundation for managing and governing
10-100x more IT and data.
• Throw out the traditional IT playbook & go “emergent.”
• Identify CoIT skills, then cultivate or hire for them.
• Become a change agent and an IT revolutionary. You
probably won’t have your job in it’s current form long
anyway.

55. Thank you

56. Dachis Group
Also See: Social Business By Design
• Published May, 2012
• From John Wiley & Sons
• The definitive management
strategy guide and handbook
on social business.
• Explores major real-world
successes and how to
emulate them..
• The most complete and
business-focused statement
on what social business is
and why it’s strategically
vital.
• Recently #1 in Amazon’s Hot
New Releases
• Companion Web site at
http://socialbusinessbydesign.com
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