The document discusses how digital disruption is driving a transition to a new digital economy. It notes that 52% of Fortune 500 companies have been replaced since 2000 due to digital disruption. The new digital economy is driven by the convergence of social, mobile, analytics, big data, cloud computing and other technologies, creating both disruption and opportunities for innovation. It provides examples of how industries like transportation, education, finance and telecommunications may be disrupted. It argues that big companies need to undergo digital transformation to remain competitive in this new environment.

1. Agile in the new economy
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2. Are we in the middle of next revolution?
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3. The revolution is already under way.
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4. “Over the last few decades, we’ve grown beyond the
Industrial economy - IT economy - Internet economy,
each of which led to significant inflection points in
growth and prosperity,” says Vivek Bapat, SAP’s global
VP for portfolio and strategic marketing.
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5. “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)”.
R Ray Wang, Disrupting Digital Business, HBR
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6. Convergence of multiple forces is impacting
business, economy, society …just name it..
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7. This new economy,
…resulting from the convergence of Social,
Mobile, Analytics, Big Data, Cloud, the Internet of
Things and the Internet of Everything….
…catalyzed by a new era of hyper connectivity….
is creating spectacular disruption and new
opportunities for innovation.
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8. Over the next 10 to 15 years, SAP
estimates that the Networked Economy
will represent a global economic value
of at least $90 trillion.
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9. What this new disruptive digital
economy would look like?
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10. Pointers Industrial Economy Digital Economy
Economic Development Steady and linear, predictable Volatile, disruptive
Market changes Slow and linear Fast and unpredictable
Lifecycle of Products/ Tech Long Short
Key Economy Drivers Large industrial firms Innovative, Adaptive firms
Competition The big eats the small The fast eats the slow
Business Approach Vision, goals, action plans Opportunistic, dynamic
Source of Competitive
Advantage Cheap labor, capital, scale Speed; partnership
Organizational Structures Hierarchical, bureaucratic
Flat or networked
structure
Leadership Command-and-control Self organized teams
Skills Mono-skilled, manual labor Multi-skilled, intelligence
Changing Paradigm
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11. • Technology and society changing faster than
business - accelerated pace of disruption
• Marginal costs of producing and sharing
goods/services declining
• Students are enrolling in free massive open
online courses
• Social entrepreneurs are bypassing the banking
establishment and using crowdfunding to
finance startup
Disruptions
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12. Disruptions
• In SF, Uber has 3x revenue of the entire
prior taxi and limo industry.
• Without owning a single room, Airbnb has
more rooms to offer than Hilton. Airbnb
has 800 employees, while Hilton has
152,000.
• Top Kickstarters raise tens of millions of
dollars that once required top-tier
investment firms.
Source: Tim O’Reilly
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13. • First time more than 50% population live in cities
• 3 billion connected people so far, will grow 1.5
billion more by 2020, per ITU.
• Innovation explosion with more connected
people
• More room for Design Thinking, Creativity,
Imagination
• Creates more disruptive stress or opportunity
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Disruptions
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15. Disruption Scenarios
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Source: Future Scenarios: Frank Diana
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16. Startup surge
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97 startups have over $1 billion valuations (WSJ - May 2015)
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17. What will happen if Google comes up with
the autonomous car?
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18. • Google says accidents will decline by 90%
• No auto insurance, car makers will cover that
• Fewer body shops
• Roadside motel industry will get impacted
• Health insurance cost will decline
• Car dealers will become app dealers
• Car entertainment industry will flourish
• What happens to all those Uber drivers when
the cars start driving themselves?
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19. Disruption in Education
• Pressure will be on employable workforce
• Content becomes open and commoditized
• Demand for university building, libraries, lecture
hall, student housing plummet
• A teacher in a disrupted world will become more
of a facilitator, seeking to package, conduct, and
monitor an optimal experience for learners.
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20. Disruption in Education
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21. Disruption in Home
• Smart home disrupts elder care industry
• Connected Health will provide health services
everywhere
• Home security industry will be disrupted by low cost
options
• Insurance companies could provide home security as
well or vice versa
• Smart home integrators will emerge
• EarlySense and Evermind have created devices that
track patients' sleeping habits and monitor if they are
using their life-saving medical devices, respectively.
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22. Disruption in Fintech
Banking
•Simple, BankMobile, Moven provide banking with no fees.
Disruption: Checking accounts, savings accounts and checks.
Money Transfer
•Venmo, PayPal, Google Wallet, Snapcash, Transferwise
Disruption: ATM cards, cash and checks.
Blockchain, a protocol that allows for secure, direct, digital transfers of
value and assets (think money, contracts, stocks, IP).
Wealth Management
•“Roboadvisors” - Acorns, Betterment, Wealthfront, Robinhood allow
you to invest money with free stock trades, portfolio management
tools and automated investing.
Disruption: Large investment corporations like FidelityScrumTotal 22

23. Disruption in Fintech
Receiving Payments
•Square, Braintree allow small businesses to accept payments
Disruption: Credit card companies.
Business Loans
•LendingClub, eToro (not in the US), CAN Capital and Kabbage ,
Fundera (match you with lenders)
Disruption: Big banks with restrictive loan policies
Payroll
•Small businesses that can’t afford a dedicated accounting team.
Zenefits, Wave and ZenPayroll.
Disruption: Accounts payable departments
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24. Disruption in Fintech
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25. Disruption in Telecom
• The Telcos will lose a combined $386 billion
between 2012 and 2018, UK firm Ovum predicts,
from customers using apps like Skype and Lync.
• VoIP will grow at 20% resulting in $63 bil in lost
revenue in 2018, Ovum says.
• Chat apps WhatsApp and WeChat offer social
networks that retain user loyalty and stickiness
pushing people to go for smaller voice/text plans.
• Telcos homegrown apps for existing customers may
not scale
• Netflix-Comcast like partnership opens new doors
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26. Why big companies need digital
transformation?
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27. Businesses are realizing that future success is tied to digital
transformation:
-We are no longer an economy of products and services.
 The digital transformation demands that we focus our
attention on experiences and outcomes.
- An effort to renovate business vision, models, and
investments for a new digital economy
 I often use the iPhone as an example of a device that
destroyed 27 business models.
- Enabling companies to operate in a rapidly changing business
environment.
 Products are getting obsolete very fast. Companies
releasing faster into production.
Digital Transformation
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28. • Internet Companies and start-ups have the
advantage
• Barriers for new market entrants continue
to collapse.
• But most companies are traditional
companies and have long way to go.
– Their organizational policies, practices,
processes and structures that inhibit
digital transformation will change.
Threats/Opportunities
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29. Big companies are not structured for future
•Existing assets are getting obsolete
•Technology undermines advantages of scale
•Need new Agile thinking
– Growth oriented
– Networked, flat
– Management 3.0
– Entrepreneurial and innovative
– Agile practices
– Fast, Iterative, experimental
Threats/Opportunities
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30. Road to Redemption
Digital transformation requires an integrated strategy
enabled by converging advances in
•Technology (Cloud, Mobile, Social and Big Data, plus
future scenarios)
•Principles and Concepts (Lean/Agile, user centered
design, design thinking, Microservices, automation,
continuous deployment/integration)
•People and Organizations (Mastery, autonomy,
purpose, self-organization, collaboration, small
distributed teams, crowdsourcing, holacracy)
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31. The Art of Possibility
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32. Presented By
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Simple, intuitive and truly mobile Scrum app
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