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DON SMITHMIER
LEADERSHIP IN THE
DIGITAL TRANSFORMATION
ERA
DON SMITHMIER
GOKART LABS
2
WHAT WE’RE GOING TO COVER
1 WE'VE ENTERED THE AGE OF THE CUSTOMER
WE ARE WITNESSING A MASS EXTINCTION EVENT, BUT IT CAN ...
3
LAST YEAR WE TALKED ABOUT
THE AGE OF THE CUSTOMER
1900 1960 1990 2010
Age of manufacturing Age of the customerAge of InformationAge of distribution
Mass marketing makes
ind...
Age of the customer
2007 20222014
The Mobile Tipping Point
With half of consumers buying via mobile,
the competition is no...
6
AGE OF INFORMATION = ACCESS + SCALE
6
7
AGE OF CUSTOMER = ADAPTABILITY + SPEED
8
“Since 2000, over 50 percent of Fortune
500 companies have been acquired,
merged, or declared bankruptcy.”
- Innosight
9
- McKinsey
“Mass-extinction events don’t just happen for
no reason. In the current extinction event,
the causal factor i...
10
ADAPTATION 

IS HARD
SPECIES WHO AVOID EXTINCTION HAVE THE ABILITY TO ADAPT
11
INVESTMENT
FOR BUSINESSES, IT REQUIRES…
+ CHANGE
12
INVESTMENT
FOR BUSINESSES, IT REQUIRES…
+ CHANGE
HINT: THIS IS THE BIG ONE
13
THE PROBLEM ISN’T
WILLINGNESS TO INVEST
14
DATA-DRIVEN
DECISIONS
$240B
2018 SPENDING IN DIGITAL TRANSFORMATION
COMMUNICATION PLATFORMS
& INNOVATIONS
$326B
TECHNOL...
15
DATA-DRIVEN
DECISIONS
$240B
2018 SPENDING IN DIGITAL TRANSFORMATION
COMMUNICATION PLATFORMS
& INNOVATIONS
$326B
TECHNOL...
16
TECHNOLOGY
STRUCTURE CULTURE
TALENTMETRICS
SUCCESSFUL TRANSFORMATION
REQUIRES FOCUS ON 5 KEY AREAS
17
TECHNOLOGY
STRUCTURE CULTURE
TALENTMETRICS
18
TECHNOLOGY
STRUCTURE CULTURE
TALENTMETRICS
THE MAJORITY REQUIRE HUMAN CHANGE
19
STARTUPS DON’T NEED TO TRANSFORM,
THEY JUST NEED TO GROW
20
THE PURPOSE OF DIGITAL
TRANSFORMATION IS TO ACCELERATE
YOUR COMPANY’S ABILITY TO MEET
CUSTOMER EXPECTATIONS
21
LET’S TALK ABOUT HOW TO 

MANAGE TRANSFORMATION
22
VIJAY KNOWS WHAT’S UP
THREE BOX SOLUTION
VIJAY GOVINDARAJAN
23
THREE BOX SOLUTION
Abandon ideas that inhibit
growth or innovation
FORGET THE PAST
BOX 2
Build the future through
innov...
24
“Every act of creation is
first an act of destruction.”
- Pablo Picasso
25
BOX TWO IS THE KEY 

TO TRANSFORMATION
Abandon ideas that
inhibit growth or
innovation
FORGET THE PAST
BOX 2
What are t...
To win in the future, we
just need to do what
we’ve done in the past
TRAP
COMPLACENCY
This new thing threatens
our core bu...
27
28
BLOCKBUSTER’S 3-BOX
Shorten store lines
Improve supply
Incentivize timely
returns and rewinding
Candy & popcorn for
mor...
29
BOX 2 THINKING BOX 3 THINKING
The internet won’t affect our business But how might it?
People like coming to stores Wha...
30
FORM A BOX 3 TEAM
WHAT COULD THEY HAVE DONE?
SEPARATE THEM FROM CORE BIZ
CHARGE THEM WITH WORKING ON THE
“WEAK SIGNALS”...
31
IN THE MIDST OF THE MOST DIGITAL
TIME IN HISTORY, WE HAVE TO BE
MORE HUMAN THAN EVER
32
HUMANS STRUGGLE WITH
CHANGE BECAUSE OF
INGRAINED BEHAVIORS
AND LIMITING BELIEFS
IT’S NOT EASY
BY NAMING AND
CHALLENGING...
33
THREE BOX SOLUTION
Abandon ideas that inhibit
growth or innovation
FORGET THE PAST
BOX 2
Build the future through
innov...
34
LET’S TALK ABOUT IT
THANK YOU
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Leadership In The Digital Transformation Era

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Don Smithmier - GoKart Labs

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Leadership In The Digital Transformation Era

  1. 1. DON SMITHMIER LEADERSHIP IN THE DIGITAL TRANSFORMATION ERA DON SMITHMIER GOKART LABS
  2. 2. 2 WHAT WE’RE GOING TO COVER 1 WE'VE ENTERED THE AGE OF THE CUSTOMER WE ARE WITNESSING A MASS EXTINCTION EVENT, BUT IT CAN BE AVOIDED2 AVOIDING IT REQUIRES ADAPTATION, WHICH IS REALLY HARD3 THE PROBLEM ISN'T TECHNOLOGY OR MONEY -- IT'S HUMANS4 I HAVE A NEW METHOD/TOOL THAT CAN HELP5 WE'LL USE A REAL EXAMPLE TO LEARN ABOUT IT6 THEN WE'LL LEARN FROM EACH OTHER7
  3. 3. 3 LAST YEAR WE TALKED ABOUT THE AGE OF THE CUSTOMER
  4. 4. 1900 1960 1990 2010 Age of manufacturing Age of the customerAge of InformationAge of distribution Mass marketing makes industrial powerhouses succeed (Ford, Boeing, GE) Global connections and transportation make distribution key (Wal-Mart, P&G, UPS) The internet puts those that control the flow of information in control (Google, Amazon, Comcast) Empowered buyers demand a new level of customer obsession (Salesforce, Amazon, Macy’s) 4 AGE OF THE CUSTOMER
  5. 5. Age of the customer 2007 20222014 The Mobile Tipping Point With half of consumers buying via mobile, the competition is not just about price and speed, but about the digital experience they have with your brand 5 AGE OF THE CUSTOMER
  6. 6. 6 AGE OF INFORMATION = ACCESS + SCALE 6
  7. 7. 7 AGE OF CUSTOMER = ADAPTABILITY + SPEED
  8. 8. 8 “Since 2000, over 50 percent of Fortune 500 companies have been acquired, merged, or declared bankruptcy.” - Innosight
  9. 9. 9 - McKinsey “Mass-extinction events don’t just happen for no reason. In the current extinction event, the causal factor is digital transformation.”
  10. 10. 10 ADAPTATION 
 IS HARD SPECIES WHO AVOID EXTINCTION HAVE THE ABILITY TO ADAPT
  11. 11. 11 INVESTMENT FOR BUSINESSES, IT REQUIRES… + CHANGE
  12. 12. 12 INVESTMENT FOR BUSINESSES, IT REQUIRES… + CHANGE HINT: THIS IS THE BIG ONE
  13. 13. 13 THE PROBLEM ISN’T WILLINGNESS TO INVEST
  14. 14. 14 DATA-DRIVEN DECISIONS $240B 2018 SPENDING IN DIGITAL TRANSFORMATION COMMUNICATION PLATFORMS & INNOVATIONS $326B TECHNOLOGY & OPERATIONS $662B HTTPS://WWW.TECHREPUBLIC.COM/ARTICLE/REPORT-DIGITAL-TRANSFORMATION-SPENDING-TO-HIT-1-7T-BY-2019/
  15. 15. 15 DATA-DRIVEN DECISIONS $240B 2018 SPENDING IN DIGITAL TRANSFORMATION COMMUNICATION PLATFORMS & INNOVATIONS $326B TECHNOLOGY & OPERATIONS $662B HTTPS://WWW.TECHREPUBLIC.COM/ARTICLE/REPORT-DIGITAL-TRANSFORMATION-SPENDING-TO-HIT-1-7T-BY-2019/ SO, ENTERPRISES ARE INVESTING BUT MANY ARE ONLY SPENDING ON ONE PART OF THE PROBLEM
  16. 16. 16 TECHNOLOGY STRUCTURE CULTURE TALENTMETRICS SUCCESSFUL TRANSFORMATION REQUIRES FOCUS ON 5 KEY AREAS
  17. 17. 17 TECHNOLOGY STRUCTURE CULTURE TALENTMETRICS
  18. 18. 18 TECHNOLOGY STRUCTURE CULTURE TALENTMETRICS THE MAJORITY REQUIRE HUMAN CHANGE
  19. 19. 19 STARTUPS DON’T NEED TO TRANSFORM, THEY JUST NEED TO GROW
  20. 20. 20 THE PURPOSE OF DIGITAL TRANSFORMATION IS TO ACCELERATE YOUR COMPANY’S ABILITY TO MEET CUSTOMER EXPECTATIONS
  21. 21. 21 LET’S TALK ABOUT HOW TO 
 MANAGE TRANSFORMATION
  22. 22. 22 VIJAY KNOWS WHAT’S UP THREE BOX SOLUTION VIJAY GOVINDARAJAN
  23. 23. 23 THREE BOX SOLUTION Abandon ideas that inhibit growth or innovation FORGET THE PAST BOX 2 Build the future through innovation BUILD THE FUTURE BOX 3 Keep your core business strong and efficient PROTECT THE PRESENT BOX 1
  24. 24. 24 “Every act of creation is first an act of destruction.” - Pablo Picasso
  25. 25. 25 BOX TWO IS THE KEY 
 TO TRANSFORMATION Abandon ideas that inhibit growth or innovation FORGET THE PAST BOX 2 What are the “weak signals” from the future? What are the Sacred Beliefs that need to be challenged? What incentives + policies slow our innovation? What should we stop doing? How will we avoid the three traps?
  26. 26. To win in the future, we just need to do what we’ve done in the past TRAP COMPLACENCY This new thing threatens our core business, so I want to kill it TRAP CANNIBALIZATION We’re amazing. No one is good enough to beat us at our own game TRAP COMPETENCY 26 FORGET THE PAST Abandon ideas that inhibit growth or innovation FORGET THE PAST BOX 2 Build the future through innovation BUILD THE FUTURE BOX 3 Keep your core business strong and efficient PROTECT THE PRESENT BOX 1
  27. 27. 27
  28. 28. 28 BLOCKBUSTER’S 3-BOX Shorten store lines Improve supply Incentivize timely returns and rewinding Candy & popcorn for more $ per visit BOX 1 The internet won’t affect our business People like coming 
 to stores Movies are played on 
 a machine (vcr/dvd) Licensing deals can’t 
 be changed Movies can’t be downloaded BOX 2 ? BOX 3
  29. 29. 29 BOX 2 THINKING BOX 3 THINKING The internet won’t affect our business But how might it? People like coming to stores What if they don’t? Movies are played on a machine (vcr/dvd) Will that always be true? Licensing deals can’t be changed What if they could be? Movies can’t be downloaded How soon could that change?
  30. 30. 30 FORM A BOX 3 TEAM WHAT COULD THEY HAVE DONE? SEPARATE THEM FROM CORE BIZ CHARGE THEM WITH WORKING ON THE “WEAK SIGNALS” FROM THE FUTURE INCENTIVIZE THEM DIFFERENTLY PENALIZE ANY “FOOT DRAGGERS” WHO BLOCK THEM
  31. 31. 31 IN THE MIDST OF THE MOST DIGITAL TIME IN HISTORY, WE HAVE TO BE MORE HUMAN THAN EVER
  32. 32. 32 HUMANS STRUGGLE WITH CHANGE BECAUSE OF INGRAINED BEHAVIORS AND LIMITING BELIEFS IT’S NOT EASY BY NAMING AND CHALLENGING OUR LIMITING BELIEFS, WE CAN CHANGE OUR BUSINESSES
  33. 33. 33 THREE BOX SOLUTION Abandon ideas that inhibit growth or innovation FORGET THE PAST BOX 2 Build the future through innovation BUILD THE FUTURE BOX 3 Keep your core business strong and efficient PROTECT THE PRESENT BOX 1
  34. 34. 34 LET’S TALK ABOUT IT
  35. 35. THANK YOU

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