Disrupting Digital Business: Ready for the Post-Sale, On-Demand, Attention Economy?
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R "Ray" WangFollow
Dec. 3, 2015•0 likes•23,922 views
Disrupting Digital Business: Ready for the Post-Sale, On-Demand, Attention Economy?
Dec. 3, 2015•0 likes•23,922 views
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Companies succeeding in the digital era have done so because of their understanding of what it takes to build an organization in the digital age. Given we no longer sell products or services, the world of digital requires us to focus on experiences and outcomes. We move from selling products to keeping brand promises. As with past transformations, organizations must prepare to move ahead of these social, organizational, and technology shifts or be left behind as digital business disruption becomes a necessity. Lesson 1 – Transform Business Models And Engagement Lesson 2 – Keep The Brand Promise Lesson 3 – Sell The Smallest Unit You Can Lesson 4 – Know That Data Is The Foundation Of Digital Business Lesson 5 – Build For Insight Streams Lesson 6 – Win With Network Economies Lesson 7 – Humanize Digital With Digital Artisans Lesson 8 – Democratize Distribution With P2P Networks Lesson 9 – Deliver Intention Driven, Mass Personalization At Scale Lesson 10 – Segment by Digital Proficiency Not Age The book analyzes the trends that business leaders must pay attention to and how they should react to them. Those trends when taken seriously require a new way of thinking about business. 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. You and I can’t seem to put structure around this. Many of us have been here. But we can qualify the shift. We are articulating how these businesses are about to change. We’re doing it piecemeal, but a story is emerging. We have one-off stories about massive business model disruption. In fact, the impact of digital on our personal lives is an early indication. From how we interact with each other to how we engage with organizations, the shift is right in front of us. Our personal experiences foreshadow how businesses will be disrupted by this digital revolution. In fact, 52% of the Fortune 500 have been merged, acquired, gone bankrupt, or fallen off the list since 2000. The impact of digital disruption is real. However, it’s not the technologies that drive this change. It’s a shift in how new business models are created. We’re moving at a massive scale from systems of transaction (record) to achieving mass personalization at scale (digital).
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Disrupting Digital Business: Ready for the Post-Sale, On-Demand, Attention Economy?
- 1. © 2010-2015 Constellation Research, Inc. All rights reserved. Disrupting Digital Business Create an Authentic Experience In The P2P Economy FALL 2015 - 2016 R “RAY” WANG (@RWANG0) PRINCIPAL ANALYST & CHAIRMAN 1@rwang0 #DisruptingDigital
- 2. © 2010-2015 Constellation Research, Inc. All rights reserved. 2 52% of the Fortune 500 firms since 2000 are gone
- 3. © 2010-2015 Constellation Research, Inc. All rights reserved. 3@rwang0 #DisruptingDigital Digital creates winner takes all markets Overall Market Share Percentage of Profits
- 4. © 2010-2015 Constellation Research, Inc. All rights reserved. 4@rwang0 #DisruptingDigital ”Welcome to the post-sale, on-demand, attention economy!" (2014) @rwang0
- 5. © 2010-2015 Constellation Research, Inc. All rights reserved. Disrupt Or Be Disrupted 5@rwang0 #DisruptingDigital
- 6. © 2010-2015 Constellation Research, Inc. All rights reserved. 6@rwang0 #DisruptingDigital Incremental innovation is table stakes and expected in the market
- 7. © 2010-2015 Constellation Research, Inc. All rights reserved. 7@rwang0 #DisruptingDigital The middle is a bad place to be in digital
- 8. © 2010-2015 Constellation Research, Inc. All rights reserved. 10 Lessons Learned From Disrupting Digital 8@rwang0 #DisruptingDigital
- 9. © 2010-2015 Constellation Research, Inc. All rights reserved. 9@rwang0 #DisruptingDigital Digital disruption is more than just a technology shift. It’s about transforming business models and how we engage. 1
- 10. © 2010-2015 Constellation Research, Inc. All rights reserved. 10@rwang0 #DisruptingDigital Tech convergence powers digital disruption Mobile Social Cloud Big Data IOT 3D Printing Design Thinking Inspired User Experience
- 11. © 2010-2015 Constellation Research, Inc. All rights reserved. 11@rwang0 #DisruptingDigital Social creates new verbs and experiences that bring people and networks together Twitter – 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 Periscope– Watch me pee live
- 12. © 2010-2015 Constellation Research, Inc. All rights reserved. 12@rwang0 #DisruptingDigital #WLE2015Barcelona But this is so 2009… Mobile Social Cloud Big Data Unified Comms Design Thinking Inspired User Experience
- 13. © 2010-2015 Constellation Research, Inc. All rights reserved. 13@rwang0 #DisruptingDigital #WLE2015Barcelona Disruptive tech trends have advanced to IOT 3D Printing Robotics AI/ Synaptic Neural Networks Block Chain Tech Design Thinking Inspired User Experience
- 14. © 2010-2015 Constellation Research, Inc. All rights reserved. 14@rwang0 #DisruptingDigital Uber incorporates five key pillars
- 15. © 2010-2015 Constellation Research, Inc. All rights reserved. 15@rwang0 #DisruptingDigital We move from selling products and services to keeping brand promises in an attention economy. 2
- 16. © 2010-2015 Constellation Research, Inc. All rights reserved. 16@rwang0 #DisruptingDigital 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.
- 17. © 2010-2015 Constellation Research, Inc. All rights reserved. 17@rwang0 #DisruptingDigital "You're not competing with another company, you're really competing for time and attention" (2010)
- 18. © 2010-2015 Constellation Research, Inc. All rights reserved. 18@rwang0 #DisruptingDigital New unit cost pricing models enable disruptive business models to thrive. 3
- 19. © 2010-2015 Constellation Research, Inc. All rights reserved. 19@rwang0 #DisruptingDigital From all you can drink…. to by the sip
- 20. © 2010-2015 Constellation Research, Inc. All rights reserved. 20@rwang0 #DisruptingDigital Data is the foundation of digital business. Every touch point, every click, every digital exhaust is relevant insight. 4
- 21. © 2010-2015 Constellation Research, Inc. All rights reserved. 21@rwang0 #DisruptingDigital Data and content explosion goes exponential 90% of data created in last 2 years 2014, 1 year 2015, 1 sec 2020 80 Billion sensors in devices by 2020 100M viral connections per minute by 2020
- 22. © 2010-2015 Constellation Research, Inc. All rights reserved. 22@rwang0 #DisruptingDigital If 20 % of your revenue is not an insight stream by 2020, you won’t have a digital biz model 5
- 23. © 2010-2015 Constellation Research, Inc. All rights reserved. 23@rwang0 #DisruptingDigital The future is big data business models built on insight Insight based differentiation Drive demand Create new service offerings Improve c-sat Drive lower cost models Insight brokering Raw information Analysis and insights Benchmarking Insight based business platforms Marketplaces Deal making Advertising
- 24. © 2010-2015 Constellation Research, Inc. All rights reserved. 24@rwang0 #DisruptingDigital You can be the content, the network and the arms dealer. Today’s digital winners vertically integrate all three in network economies. 6
- 25. © 2010-2015 Constellation Research, Inc. All rights reserved. 25@rwang0 #DisruptingDigital Four companies control the network from content and commerce to consumer device
- 26. © 2010-2015 Constellation Research, Inc. All rights reserved. 26@rwang0 #DisruptingDigital VS. Videos VS. ShippingVS.Commerce Cloud Computing VS. Media VS.Devices VS.
- 27. © 2010-2015 Constellation Research, Inc. All rights reserved. 27@rwang0 #DisruptingDigital Digital artisans emerge to humanize digital across the organization 7
- 28. © 2010-2015 Constellation Research, Inc. All rights reserved. 28@rwang0 #DisruptingDigital GE Power knows when a transmission line will go down 8 to 10 days before it happens
- 29. © 2010-2015 Constellation Research, Inc. All rights reserved. “Design thinking is a methodology to unlock solutions to questions you never would have asked” 29@rwang0 #DisruptingDigital
- 30. © 2010-2015 Constellation Research, Inc. All rights reserved. 30@rwang0 #DisruptingDigital People to people (P2P) is about direct connections and digital scale 8
- 31. © 2010-2015 Constellation Research, Inc. All rights reserved. 31@rwang0 #DisruptingDigital Tesla changed the rules of low volume production, eco luxury & direct to consumer VS.
- 32. © 2010-2015 Constellation Research, Inc. All rights reserved. 32@rwang0 #DisruptingDigital Design for people segments of one 9
- 33. © 2010-2015 Constellation Research, Inc. All rights reserved. 33@rwang0 #DisruptingDigital Can you support a human segment of one and deliver on mass personalization at scale?
- 34. © 2010-2015 Constellation Research, Inc. All rights reserved. 34@rwang0 #DisruptingDigital Digital delivers on mass personalization at scale Analog Systems Pre 1950’s Reliability and scalability Massive machine scale Sweat based Limited Governed Physical locations Word of mouth Dumb devices Assembly line technologies Elements Circa Design point Challenge User Exp Comm Style Speed Impact and reach Info mgmt Intelligence Examples Transactional Systems 1950s+ Continuous improvement Massive computing scale Computing based Broadcast dictatorial Just in time Departmental/ corporate silos Highly structured Hard coded Payroll, ERP, CRM Engagement Systems 2000+ Sense and respond Massive social scale Interactive Conversational Real time Interconnected Loosely structured knowledge Deterministic business rules Social and collaboration Mass Personalized Systems 2015+ Intention driven Massive individual scale Personalized Sentient Space time contiuum P2P networks Self aware embedded knowledge Predictive Decision support, VRM Experiential Systems 2010+ Agile and flexible Massive contextual scale Bionic Role tailored Right time Segmented value chains Immersive streams Probabilistic pattern based Ad networks, gamification
- 35. © 2010-2015 Constellation Research, Inc. All rights reserved. 35@rwang0 #DisruptingDigital Five generations of people by digital proficiency, not age 10
- 36. © 2010-2015 Constellation Research, Inc. All rights reserved. 36@rwang0 #DisruptingDigital 5 generations of digital people not by age but by digital proficiency Digital Proficiency 1. Digital Natives comfortable in engaging all digital channels 2. Digital Immigrants crossed the chasm into the digital world, forced into engagement with digital channels 3. Digital Voyeurs Recognize the shift to digital but not ready to be active yet themselves 4. Digital Holdouts Resisting the shift to digital, ignoring the impact 5. Digitally Disengaged Understand digital but avoiding engagement on purpose, often for privacy reasons
- 37. © 2010-2015 Constellation Research, Inc. All rights reserved. Disrupting Digital Business 37@rwang0 #DisruptingDigital
- 38. © 2010-2015 Constellation Research, Inc. All rights reserved. “Digital Darwinism is unkind to those who wait” 2010 (@rwang0) 38@rwang0 #DisruptingDigital
- 39. © 2010-2015 Constellation Research, Inc. All rights reserved. 39@rwang0 #DisruptingDigital The reality of how we allocate is set up for margin Brand Strategic differentiation Revenue growth Operational efficiency Regulatory compliance
- 40. © 2010-2015 Constellation Research, Inc. All rights reserved. 40@rwang0 #DisruptingDigital Growth requires the flip in the pyramid Brand Strategic differentiation Revenue growth Operational efficiency Regulatory compliance
- 41. © 2010-2015 Constellation Research, Inc. All rights reserved. 41@rwang0 #DisruptingDigital In the new world IT – business collaboration is key to digital success Simple Scalable Sexy BusinessNeeds ITRequirements Safe Secure Sustainable Business Models Geos Value Networks Org Structures Disruptive Technology
- 42. © 2010-2015 Constellation Research, Inc. All rights reserved. 42@rwang0 #DisruptingDigital Business runs hard as IT scales in step function Time RateofInnovation IT scaling Wave 1 Wave 2 Wave 3 Wave 4 Wave 5
- 43. © 2010-2015 Constellation Research, Inc. All rights reserved. 43@rwang0 #DisruptingDigital Five steps from data to decisions to digital Design new experiences and outcomes Develop a culture of digital DNA Apply new business models and technologies to existing infrastructure Move from gut to data driven decisions with planning, consolidation, and control Co-create and co-innovate with new partners
- 44. © 2010-2015 Constellation Research, Inc. All rights reserved. Join me and other innovators at Join me and other innovators at Constellation’s Connected Enterprise The Ritz Carlton, Half Moon Bay, CA | October 26-28, 2016 | www.constellationevents.com 44
- 45. © 2010-2015 Constellation Research, Inc. All rights reserved. R “Ray” Wang +1.650.918.6619 R@ConstellationR.com @rwang0 www.raywang.org www.ConstellationR.com Thank you. Any questions?
- 46. San Francisco | Andalucia | Belfast | Boston | Chicago | Colorado Springs | Cupertino | Denver | Irvine | London | Madrid New York | NOVA |Pune | Sacramento | Santa Monica | Sedona | Sydney | Tokyo | Toronto | Washington, D.C. www.constellationR.com San Francisco | Belfast | Boston | Colorado Springs | Cupertino | Denver | London | Miami | New York NOVA |Palo Alto| Pune | Sacramento | San Diego | Santa Monica | Sydney | Toronto | Washington, D.C. www.constellationR.com
Editor's Notes
- Disrupting Digital Business: Create an Authentic Experience in the Peer-to-Peer Economy
- Can you imagine three years ago? Fortune 500 Firms in 1955 vs. 2011; 87% Are Gone 52% of the Fortune 500 firms since 2000 are gone 2010 – Blackberry’s had a 45% market share vs Apples’ 25% vs Microsoft’s 15% vs Android’s 7% vs Palm’s 5.7% This is a seemingly innocent question. But to truly answer this question, you have to Imagine what’s happened in the past 24 months. Raise your hands if you felt in control or any semblance of control over your profits, revenues, idea creation, new products were introduced, collaboration points, your community, or customer experience? Were you able to effect and affect change? Did you have the right tools to create the conditions to manage the change ahead? Now put yourselves in the mindset of an enterprise or brand. How can you improve your business outcomes? Why do I ask this? Well customers no longer buy technologies. They no longer buy software. They are buying outcomes from you. That’s what they want. Peace of mind outcomes.
- Create a new slide that says 2014 Disruptive Technology Forces IOT, 3D Printing, Synaptic Neural Networks, Robotics, and Block Chain Tech
- Create a new slide that says 2014 Disruptive Technology Forces IOT, 3D Printing, Synaptic Neural Networks, Robotics, and Block Chain Tech