SlideShare a Scribd company logo
1
The Platform
SUPPORTING YOUR DIGITAL GROWTH
Inês Almeida, 25 May 2017
DIGITAL APOCALYPSE SURVIVAL KIT
TM
2
5/26/2017 2
DEATH & VAMPIRES
3
60
13
1958 2029
DATA: INNOSIGHT/ Richard N. Foster / Standard & Poor’s SOURCE: Wired
AVERAGE COMPANY LIFESPAN ON S&P 500 INDEX (IN YEARS)
4
The fountain
of eternal
youth
5
The Fountain of
Eternal Youth
But…
don’t try
this at home
just yet!
6
Can this be
avoided?
7
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
$450.00
Best Buy JCPenney Kohl's Macy's Nordstrom Sears Target Walmart Amazon
Market Value 2006 (B) Market Value 2017 (B)
Billions
- 47% - 91% - 73% - 64% - 40% - 96%
- 43%
+ 2%
+ 2347%
SOURCE: Yahoo Finance
USABRICK & MORTAR RETAILER CAP VSAMAZON (BN)
8
What is a company’s
fountain of youth?
How can we avoid
unintended
consequences?
9
BUSINESS
MODEL
OPERATING
MODEL
BRAND
Human centered
CUSTOMER
TECH
Powered by
The fountain
of eternal
youth
10
CREATE
VALUE
ORGANISE TO
WIN
CONNECT
WITH
CUSTOMERS
Human centered
CUSTOMER
TECH
Powered by
The fountain
of eternal
youth
11
PRINCIPLE TACTIC
12
Business Model
Value Creation
13
Create value through
continuous innovation.
Sustaining & Disruptive.
PRINCIPLE
14
Sizeoftheorganisation
Age of the organisation
Late Prime
Adolescence
Courtship Death
Bureaucracy
Recrimination
Aristocracy
Prime
Go-Go
Infant
GROWING AGING
BUSINESS MODEL INNOVATION: STAGES OF CORPORATE LIFECYCLE
SOURCE: Ichak Adizes
15
Growth
Optimization
Market
Development
Concept
Creation
Concept
Development
Time
BUSINESS MODEL INNOVATION: -CURVE OFAPRODUCT, SERVICE
16
Growth
Reinvention
Harvesting
Market
Development
Concept
Creation
Concept
Development
Optimization
Time
BUSINESS MODEL INNOVATION: INNOVATE OR DIE
17
Growth
Time
BUSINESS MODEL INNOVATION: SUSTAINABLE BUSINESS
18
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND
(evolutionary)
CREATE
(revolutionary)
MANAGE
(incremental)
ADAPT
(evolutionary)
VALUE INNOVATION
SOURCE: Change by Design, Tim Brown
19
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND
(evolutionary)
CREATE
(revolutionary)
MANAGE
(incremental)
ADAPT
(evolutionary)
VALUE INNOVATION
SOURCE: Change by Design, Tim Brown
20
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND
(evolutionary)
CREATE
(revolutionary)
MANAGE
(incremental)
ADAPT
(evolutionary)
VALUE INNOVATION
SOURCE: Change by Design, Tim Brown
21
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND
(evolutionary)
CREATE
(revolutionary)
MANAGE
(incremental)
ADAPT
(evolutionary)
VALUE INNOVATION
SOURCE: Change by Design, Tim Brown
22
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND
(evolutionary)
CREATE
(revolutionary)
MANAGE
(incremental)
ADAPT
(evolutionary)
SUSTAINING
INNOVATION
VALUE INNOVATION
SOURCE: Clayton Christensen
23
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND
(evolutionary)
CREATE
(revolutionary)
MANAGE
(incremental)
ADAPT
(evolutionary)
DISRUPTIVE
INNOVATION
ENTRANTS NEARLY
ALWAYS WIN
VALUE INNOVATION
SOURCE: Clayton Christensen
24
Incremental Innovation
Evolutionary Innovation
Revolutionary Innovation
Value
Time
SUSTAINING & DISRUPTIVE INNOVATION
SOURCE: Mckinsey’s three horizons of growth
25
Platform for
open innovation.
TACTIC
26
“If our institutions are to survive, they’ll
have to create new roadways. That’s a
design problem — one that requires new
rules of engagement with a broad set of
collaborators.”
Tim Brown, Ideo
”
28
”
Growth comes from
cultivating an external
network on top of
your business.
29
Own market
revenue
Time
CostsRevenues
Shorter product life
in market
Internal
development costs
Own market
revenue
0
Rising costs of innovation
Internal
development costs
Closed Business Model
SOURCE: Open Business Models: How to Thrive in the New Innovation Landscape by Henry Chesbrough
30
CLOSED
BUSINESS MODEL
Costs
Revenues
New revenues
Own market revenue
Cost & time savings from
leveraging external
development
Internal development
costs
Internal & external
development costs
Own market revenue
Acquire/Retain
Spin-off
JV revenue
Revenue share
OPEN
BUSINESS MODEL
31
GRAVITY FLOW CONNECTION
Elements of Success
SOURCE: Three elements of a successful platform - HBR
32
Business Model
Value Creation
PRINCIPLE TACTIC
Create value through
continuous innovation.
Sustaining & Disruptive
Platform for open
innovation.
33
Operating Model
34
Organize for agility
and wisdom.
PRINCIPLE
35
In humans, wisdom and agility
have an inverse correlation.
36
How can we operate
and organise for
wisdom & agility?
37
Gain wisdom &
agility by failing
often, and as fast
and cheaply as
possible.
38
How can we organise for
wisdom & agility?
MEASURE
LEARN
BUILD
From plans to
experiments.
39
Minimum viable,
bootstrapped
experiments
40
IMMERSE
ALIGN
IDEATE
TESTENVISION
PLAN
EXECUTE
Strategy
Sprints
41
Cross-functional teams
deliver products, not
projects.
PRINCIPLE
42
DESIRABILITY
FEASIBILITY
VIABILITY
Value
Innovation
43
Reject vanity
metrics.
PRINCIPLE
44
Don’t make decisions
based on the HIPPOs
SOURCE: Barry O’Reilley, Lean PMO: Managing the Innovation Portfolio
45
Don’t make decisions
based on the HIPPOs
SOURCE: Barry O’Reilley, Lean PMO: Managing the Innovation Portfolio
46
Don’t make decisions
based on vanity metrics.
47
48
Organize for
agility & wisdom.
Cross-functional
teams deliver
working products,
not projects.
Reject vanity
metrics.
Operating Model
PRINCIPLE PRINCIPLE PRINCIPLE
49
Brand
50
Brands have lost
their captive
audience.
51
Consumers, employees, and influencers
share their brand experiences.
52
Success <> Production Quality
53
Design & curate
experiences.
Meaningful, distinct, & delightful.
PRINCIPLE
54
Don’t talk
about your
brand, live it.
Thoughtfully designed,
meaningful, delightful,
distinct experiences.
55
Identify the
moments of
delight.
56
Evaluate the new digital
frontier, but design for the
human.
PRINCIPLE
57
New opportunities to
connect meaningfully.
58
Invest in insightful
conversations.
Now!
PRINCIPLE
59
Moving beyond segments and
personas. Put the personal back
into personalisation.
60
Understand why I buy, not what I buy.
61
“Alexa, please pull up my shopping list.”
“Sure! I’ve noticed you like Kale, is that right?”
“Yes, I especially like Redbor Kale.”
“May I suggest you add Amy’s Redbor Kale soup
to your list?”
62
Prevent unintended
consequences.
PRINCIPLE
63
64
65
66
Brand
PRINCIPLE PRINCIPLE PRINCIPLE
CUSTOMER EXPERIENCE
PRINCIPLE
Evaluate the new
digital frontier, but
design for the human.
Invest in insightful
conversations.
Now!
Prevent unintended
consequences.
Design & curate
experiences.
Meaningful, distinct, &
delightful.
67
68
New Frontier
69
New FrontierTHE END
Thank you, Inês

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APD summit 2017

Editor's Notes

  1. Hi, my name is Ines Almeida and I’m the Digital Transformation lead at APD. And in case you are wondering, both the accent and the attitude are Made in Portugal.   This has been a awesome day, you have listed to a number of great talks, and networked with plenty of smart people, so I want to ensure we keen it light and upbeat. To that effect I’m going to kick off my talk by talking about . . .
  2. Death and vampires…  
  3. You see, there’s all this talk about disruption, and how the lifespan of companies is getting shorter and shorter and yet the same tech innovation/disruption that are causing this shift are actually increasing human lifespan.
  4. As a proud lifelong geek , I’m following the advances in regards to life-extension science from gene editing to parabiosis.     Amazingly, the parabiosis technique is very successful in rodents. “By joining the circulatory system of an old mouse to that of a young mouse, and the older mouse get’s younger.   Hmm
  5. a Human Trial Is Underway . . . But please, don’t try this at home, just yet
  6. So humans are living longer, and we haven’t totally figure out the ageing mechanisms. But do companies have to die? Companies are complex, but surely they are not as complex of human DNA.
  7.   And some companies seem to have figured out a way to reinvent and grow with no signs of ageing. Can we learn from them? Can we borrow and steal what is working for them without losing sign of our identity and values?
  8. So what is a company’s fountain of youth, and how can we avoid unintended consequences, let’s face it, having to live in the dark and killing people is not very nice. . .
  9. Today I will talk about 3 important areas a company must look at to survive and thrive. Business Model (how do we create value), Operating Model (how do we organise to win), and Brand (How do we attract and retain our customers)   How technology is a key enabler to all these areas, but the real competitive advantage relies on our relentless customer focus in everything that we do.
  10. Today I will talk about 3 important areas a company must look at to survive and thrive. Business Model (how do we create value), Operating Model (how do we organise to win), and Brand (How do we attract and retain our customers)   How technology is a key enabler to all these areas, but the real competitive advantage relies on our relentless customer focus in everything that we do.
  11. For each one of the three area I am going to talk about a number of useful principles and tactics that you might want to try out.
  12. This is a very old model that used to describe the life cycle of a company.       In the beginning In the early stages it exists somewhere in a cheap scrappy garage. There’s lack of cash, the team is over optimistic and inexperienced.   You try to develop your product or service and then you get out to test product/market fit. And if you are talented and lucky the product take off. These are exciting times, there’s rapid growth, you hire fast to meet market demand. The structure is confusing and there’s plenty of waste. In some cases you are chasing market share instead of profit.     PRIME The organization is growing and profitable Success may breed complacency The optimization process begins. Economies of scale, reuse, centralization, control . . . Late Prime Finance introduces controls for short term financial results The organization is becoming complacent Although it is not yet obvious the ‘aging’ process has begun   Aristocracy Not making waves becomes a way of life. Outward signs of respectability take on enormous importance and affect the ability to change direction, you lost the agility to try things, to fail, to learn from failure and to adapt. The agility the company needs to become wise. The company is old, it lack agility, and wisdom.
  13. So let’s explore this a bit further. And look at the s-curve of a product/service. What should we be doing as we move to optimisation.
  14. We should absolutely continue optimise and rip the rewards of out current offerings but at this stage either we innovate or we will begin to die.
  15. And the goal is to continuously innovate. As this is what drive a sustainable business. And by now you are thinking, “innovate more” well thank you very much for the platitudes Sherlock.
  16. So how do we create more value?
  17. We can fine tune our current set of offerings. Small improvements to drive more revenue or profitability. We might package products or services together to increase our profit margins. We call this incremental innovation.
  18. You can also build and extend the set of offerings you are selling to you current customers. Airbnb just recently launched experiences, a complementary offer that is sure to add value to their existing customer base.
  19. Or find new groups of customers that may be interested in your existing products, and example would be geo expansion.
  20. This type of innovation in value creation is important, but it comes with some dangers. As we start packaging offerings to achieve better margins, our products become too complex, opaque and overpriced. We stopped focusing on the customers, we are inwardly focused, optimizing our business. A good example of this is the state of insurance products, it has become so bad that ASIC has recently issued a warning to financial institution.
  21. And that is when we get disrupted, when someone comes with simpler, cheaper products, focusing on a small niche and then expanding from there.
  22. This is why it is incredibly important that we invest in these three types of value creation innovation. The reason why many businesses only focus on the first two is because: They are able to see results sooner. Revolutionary innovation is likely to cannibalize their existing business. But either you disrupt from within or you will get disrupted
  23. The rate of change has been dizzying, and today’s advanced technologies — AI, genomics, robotics, data science, the Internet of Things — have so outpaced our industrial-era organizations and infrastructure, they end up hitting institutional cul-de-sacs. The technologies don’t come to a halt, of course, they simply move on, seeking out other places where they race ahead. If our institutions are to survive, they’ll have to create new roadways.
  24. How can we cultivate an external network on top of our business that is driving innovation and adding additional value to our customer base. The apple app store is a great example of this. The app developer ecosystem innovates continuously, adds value to apple, and in return the devs have access to tools, platform and an awesome sales channel.
  25. You see, the speed of technology advancements makes it very expensive to drive everything in house. Yet, there is a need to deliver value to market faster. This means margins are getting smaller.
  26. Unless you find a way to get others to innovation and generate value for you
  27. Gravity: How well the platform attracts participants, both producers and consumers Flow: How well the platform fosters the exchange and co-creation of value Connection: How easily others can plug into the platform to share and transact
  28. In humans, wisdom and agility have an inverse correlation. But is it the same for businesses?
  29. How can we organise for wisdom & agility?
  30. Learn and pivot as fast as you can.
  31. 3 to 5 y compelling visions, 3 to 6 month plans
  32. Teams work together to to find the perfect balance between feasibility, viability and desirability.
  33. Highest Pay Person Opinions
  34. Highest Pay Person Opinions
  35. Metrics: Conversion, retention and above all value to the customers
  36. The time to tell about the brand is gone. Brands needs to shift from storytelling to storyliving
  37. The brand story is told by the community via social sharing. And the audience is transitioning from text, to photo, to video, to live video.
  38. Consumers prefer the raw, unrehearsed, unpolished, imperfect
  39. Moments in the omnichannel experience where you must win now. Key opportunity spaces where you can delight.
  40. Customer centered, non gimmicky, value driven and human centric
  41. Data and AI can drive real insights into your customer base if you use it well. Yes I buy soup, chips and drink green juice, but the real insight here is that I’m mad about Kale.
  42. ~ 25 million voice-activated speakers powered by AI will be sold in the year 2017.
  43. To survive don’t compromise on your values, place the value you deliver to your customers and to your ecosystem first. Be on lookout to unintended consequences.
  44. In this search for immortality try to be more like an elf and less like a vampire
  45. Because if you don’t eventually either your customers, or your partners, regulators or the government will slay you
  46. Do we want to be paralyzed by fear, or do we want to get curious. To lean into the possibilities. How hard can this really be. This is business, not human DNA. We can look for models, patterns to help us grow and thrive
  47. Or you can get curious and excited and the possibilities. You explore ways with your teams where Technology can be the enabler, but not the gimmick, it should be invisible. Where you continuously renew by building on top of your strong foundation. Where you find ways to deliver meaningful, delightful moments that connect and inspire.