The 10 Secrets To Disrupting Digital Business From @rwang0 @harvardbiz

17,254 views

Published on

We’re standing at the dawn of a digital business revolution. In fact, we barely realize it. As with the beginning of every revolution, those in the midst of it can feel it, sense it, and realize that something big is happening. Yet it’s hard to quantify the shift. The data isn’t clear. It’s hard to measure. Pace of change is accelerating. Old rules seem not to apply.

My new book, Disrupting Digital Business, published by Harvard Business Review Press, reveals these revolutionary forces and prepares leaders to dominate digital business.

You now have the 10 lessons learned to disrupt digital business in your hands. You can take this information and change the world in front of you or choose to sit on the knowledge as the world passes you by

I trust you will do the right thing. And when you want some company, come join us as a client at Constellation Research where we're not afraid of the future and the art of the possible.

Published in: Business

The 10 Secrets To Disrupting Digital Business From @rwang0 @harvardbiz

  1. 1. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       TM   Disrupting Digital Business Thriving In The Post Sale, On Demand Economy Spring 2015 R “Ray” Wang (@rwang0) Principal Analyst & Chairman
  2. 2. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   2   52%  of  the  Fortune  500   firms  since  2000  are  gone  
  3. 3. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       3  @rwang0   Digital creates winner takes all markets Overall  Market  Share   Percentage  of  Profits  
  4. 4. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       4  @rwang0   “A  digital  divide  exists  between   the  organiza0ons  who  have   built  digital  business  models   and  everyone  else.”  (2013)  
  5. 5. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       5  @rwang0   Lessons Learned
  6. 6. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       6  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #1:  Digital  disrup0on  is  more  than   just  a  technology  shiY.    It’s  about   transforming  business  models  and   how  we  engage.  
  7. 7. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       7  @rwang0   Tech convergence powers digital disruption Mobile   Social   Cloud   Big   Data   IOT   3D   Prin0ng   Design  Thinking  Inspired  User  Experience  
  8. 8. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       8  @rwang0   Social creates new verbs and experiences that bring people and networks together Twi`er  –  I  need  to  pee   Facebook  –    I  pee’d   Google+  -­‐  More  pee  in  circles   FourSquare  –  I’m  peeing  here   Pinterest  –  My  pee  scrapbook   Instagram  –  My  pee  in  sepia   LinkedIn  –  Hire  me  to  pee   Path  –  Watch  me  pee  privately   You  Tube  –  Watch  me  pee   Vine  –  Watch  my  pee  loop   SnapChat  –  I  have  no  proof  I  pee’d   Jelly  –  Does  this  look  like  pee?   What’s  app  –  I  told  you  I  pee’d   Meerkat  –  Watch  me  pee  live  
  9. 9. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       9  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #2:  We  move  from  selling   products  and  services  to  keeping   brand  promises  in  an  a`en0on   economy.  
  10. 10. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       10  @rwang0   Digital accelerates business model transformation •  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.   10  
  11. 11. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       11  @rwang0   "You're  not  compe0ng  with   another  company,  you're   really  compe0ng  for  0me  and   a`en0on"  (2010)  
  12. 12. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       12  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #3:  New  unit  cost  pricing  models   enable  disrup0ve  business  models   to  thrive.  
  13. 13. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       13  @rwang0   From all you can drink…. to by the sip
  14. 14. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       14  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #4:  Data  is  the  founda0on  of   digital  business.  Every  touch  point,   every  click,  every  digital  exhaust  is   relevant  insight.  
  15. 15. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       15  @rwang0   ©  2013  -­‐  2014  R  Wang  &  Insider  Associates,  LLC.    All  rights  reserved.       Data  Sources   Informa0on  &   Orchestra0on   Insight   Decisions  &   Ac0ons   Technology Driven   Line  of   Business  Driven   •  Structured   •  Semi-­‐structured   •  Unstructured   •  Physical   •  Virtual   •  Machine   •  Contextual   •  Performance   •  Deduc0on   •  Inference   •  Predic0on   •  Next  best  ac0on   •  Preven0on   •  Sugges0on   •  No  ac0on   Use big data context to improve analytical insight to make better decisions
  16. 16. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       16  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #5:  If  20  %  of  your  revenue  is  not   an  insight  stream  by  2020,  you   won’t  have  a  digital  biz  model  
  17. 17. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       17  @rwang0   The future is big data business models built on insight Informa0on  based   differen0a0on   Drive  demand   Create  new  service   offerings   Improve  c-­‐sat   Drive  lower  cost   models   Informa0on   brokering   Raw  informa0on   Analysis  and  insights   Benchmarking   Informa0on  based   business  platorms   Marketplaces   Deal  making   Adver0sing   ©  2011  -­‐  2013  R  Wang  &  Insider  Associates,  LLC.    All  rights  reserved.      
  18. 18. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       18  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #6:  You  can  be  the  content,  the   network  and  the  arms  dealers.   The  digital  winners  will  figure  out   how  to  ver0cally  integrate  all   three  
  19. 19. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   VS.   Videos   VS.   Shipping  VS.  Commerce   Cloud     Compu=ng   VS.   Media   VS.  Devices   VS.  
  20. 20. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       20  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #7:  Digital  ar0sans  emerge  as   organiza0on’s  with  the  best  math   and  design  will  dominate  in  a   winner  takes  all  world.  
  21. 21. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       21  @rwang0   We  must  invest  in  digital  ar0sans     Authen0c  |Relevant  | Transparent|  Intelligent  Speedy  |   Ar0s0c  |Non-­‐conformist  
  22. 22. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       22  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #8:  People  to  people  (P2P)   democra0zes  distribu0on  which   strips  out  fric0on  and  transac0on   costs  
  23. 23. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       23  @rwang0   VS.   Tesla changed the rules of low volume production, eco luxury & direct to consumer
  24. 24. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       24  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #9:  Design  for  customer  segments   of  one  
  25. 25. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       25  @rwang0   Analog     Systems   Pre  1950’s   Reliability  and  scalability   Massive  machine  scale   Sweat  based   Limited   Governed   Physical  loca0ons   Word  of  mouth   Dumb  devices   Assembly  line  technologies   Digital delivers mass personalization at scale Elements   Circa   Design  point   Challenge   User  Exp   Comm  Style   Speed   Impact  and  reach   Info  mgmt   Intelligence   Examples   ©  2011  -­‐  2014  R  Wang  &  Insider  Associates,  LLC.    All  rights  reserved.       Transac0onal   Systems   1950s+   Con0nuous  improvement   Massive  compu0ng  scale   Compu0ng  based   Broadcast  dictatorial   Just  in  0me   Departmental/  corporate  silos   Highly  structured     Hard  coded   Payroll,  ERP,  CRM   Engagement   Systems   2000+   Sense  and  respond   Massive  social  scale   Interac0ve   Conversa0onal   Real  0me   Interconnected   Loosely  structured  knowledge   Determinis0c  business  rules   Social  and  collabora0on   Mass     Personalized   Systems   2015+   Inten0on  driven   Massive  individual  scale   Personalized   Sen0ent   Space  0me  con0uum   P2P  networks   Self  aware  embedded   knowledge   Predic0ve   Decision  support,  VRM   Experien0al   Systems   2010+   Agile  and  flexible   Massive  contextual  scale   Bionic   Role  tailored   Right  0me   Segmented  value  chains   Immersive  streams   Probabilis0c  pa`ern  based   Ad  networks,  gamifica0on  
  26. 26. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       26  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #10:  We  serve  5  genera0ons  of   customers  &  workers,  by  digital   proficiency,  not  by  age  
  27. 27. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       27  ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       @rwang0   #10:  We  serve  5  genera0ons  of   customers  &  workers,  by  digital   proficiency,  not  by  age  
  28. 28. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       28  @rwang0   “Digital  Darwinism  is  unkind  to   those  who  wait”   @rwang0   2014    
  29. 29. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       29  @rwang0   Five steps to disrupting digital business Design  new   experiences   and  outcomes   Develop  a   culture  of   digital  DNA   Apply  new     business  models   and  technologies     to  exis=ng   infrastructure   Move  from  gut   to  data  driven   decisions   Co-­‐create  and   co-­‐innovate   with  new   partners   5   4   3   2   1   ©  2011  -­‐  2014  R  Wang  &  Insider  Associates,  LLC.    All  rights  reserved.      
  30. 30. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       30  @rwang0   Thank  you   R “Ray” Wang 650.918.6619 R@ConstellationR.com Twitter: @rwang0 Blog: www.raywang.org
  31. 31. ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.      ©  2010  -­‐  2015  Constella0on  Research,  Inc.    All  rights  reserved.       www.ConstellationR.com San  Francisco  |  Andalucia  |  Belfast  |  Boston  |  Chicago  |  Colorado  Springs  |  Cuper0no  |  London  |  New  York      NOVA  |  Portland  |  Pune  |  Sacramento  |  Santa  Monica  |  Sydney  |  Tokyo  |  Toronto  |  Washington,  D.C.   TM

×