SlideShare a Scribd company logo
Companies are designed to
out!
customers
keep
VIA CHUCK COKER ON FLICKR.COM
don’t bring a knife to a gunfight
- OUR 19TH CENTURY MODEL FOR COMMUNICATION IS BREAKING UNDER
THE PRESSURE OF 21ST CENTURY CUSTOMERS, MARKETS AND SOCIETY.
CORE IDEA / GAP / CHALLENGE DISCUSSED IN THE TALK:
companies increasingly
have to accommodate and
woRk on the premise of the
customer. adding huge
strain to the current model
of management - designed
to keep customers out.
link
throughout the presentation I HAVE
ADDED LINKS. just click:
I HAVE TRIED TO DESIGN A VALUABLE RESOURCE
- WITH DIRECT LINKS TO WHERE ALL THE IDEAS
AND THOUGHTS ARE COMING FROM.
communication
is marketing
is distribution
is product
EVERYTHING IS THE INTERFACE BETWEEN
THE CUSTOMER AND THE COMPANY
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PART I:
“Marketing is not
a function; it is the
whole business
seen from the
customer’s point
of view.”
- PETER DRUCKER -
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
Marketing is not magicIF THE PRODUCT DOES EVERYTHING IT CAN TO KEEP CUSTOMERS OUT
- THEN MARKETING CAN’T FIX THAT.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
This makes customer activation an
integrated part of the product
and it makes marketing and products the
same thing - because they both have to
accommodate and work on the premise of
the customer.
THE THIRD WAVE OF TECH.
WELCOME TO
WHAT TECHNOLOGY IS BRINGING NOW ISN’T JUST IMPROVEMENTS AND EFFICIENCY AROUND THE
PRODUCT - IN THE COMPANY’S INTERNAL AND EXTERNAL VALUE CHAINS - IT IS CHANGES TO THE
NATURE OF THE PRODUCTS THEMSELVES.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
Before the advent of modern information technology,
products were mechanical and activities in the value
chain were performed using manual, paper processes and
verbal communication. The first wave of IT, during the
1960s and 1970s, automated individual activities in the
value chain, from order processing and bill paying to
computer-aided design and manufacturing resource
planning. (See “How Information Gives You Competitive
Advantage,” by Michael Porter and Victor Millar, HBR,
July 1985.) The productivity of activities dramatically
increased, in part because huge amounts of new data
could be captured and analyzed in each activity. This led
to the standardization of processes across companies—
and raised a dilemma for companies about how to
capture IT’s operational benefits while maintaining
distinctive strategies.
HOW SMART, CONNECTED PRODUCTS ARE
TRANSFORMING COMPETITION
The rise of the internet, with its inexpensive and
ubiquitous connectivity, unleashed the second wave of
IT-driven transformation, in the 1980s and 1990s (see
Michael Porter’s “Strategy and the Internet,” HBR,
March 2001). This enabled coordination and integration
across individual activities; with outside suppliers,
channels, and customers; and across geography. It
allowed firms, for example, to closely integrate globally
distributed supply chains.
The first two waves gave rise to huge productivity gains
and growth across the economy. While the value chain
was transformed, however, products themselves were
largely unaffected.
HOW SMART, CONNECTED PRODUCTS ARE
TRANSFORMING COMPETITION
Now, in the third wave, IT is becoming an integral part of
the product itself. Embedded sensors, processors,
software, and connectivity in products (in effect,
computers are being put inside products), coupled with a
product cloud in which product data is stored and
analyzed and some applications are run, are driving
dramatic improvements in product functionality and
performance. Massive amounts of new product-usage
data enable many of those improvements.
HOW SMART, CONNECTED PRODUCTS ARE
TRANSFORMING COMPETITION
I II III
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
WHAT MAKES SMART, CONNECTED PRODUCTS
FUNDAMENTALLY DIFFERENT IS NOT THE INTERNET,
BUT THE CHANGING NATURE OF THE “THINGS”.
HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
SPEAKER NOTES: This quote went viral on LinkedIn in March 2015. It seemed to hit a nerve..
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
Tom Goodwin is senior vice president of strategy and innovation at Havas Media.
It’s by Tom Goodwin,arguing that the coming battle for the customers will on the customer interfaces. link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
THESE COMPANIES REALIZE THAT THE MODERN AGE IS A TIME OF
SCARCE ATTENTION AND ABUNDANT CONNECTIVITY, WHERE
SMARTPHONES ARE OUR PRIMARY ACCESS AND POINT TO
EVERYTHING; WHERE MONEY AND EVERYTHING IS DIGITAL; 
- TOM GOODWIN -
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
where the interface layer
is where the profit is;
your companies most
profound business.
WHERE PHYSICAL ASSETS AND EMPLOYEES ARE LIABILITIES;
and where providing a slick, best in
class human experience will create
“TO MANY MANAGERS, THE PRODUCT IS THE
BUSINESS,” WRITES NIRAJ DAWAR IN TILT.
“FIRMS CONTINUE TO SPEND INORDINATE
AMOUNTS OF TIME, EFFORT, AND RESOURCES
ON THEIR PRODUCTS. IN FACT, BUSINESSES
ARE STRUCTURED AROUND THEIR PRODUCTS…
BUT, THE ANSWER TO QUESTIONS LIKE ‘WHY
DO CUSTOMERS BUY FROM US?’ DON’T RESIDE
IN PRODUCTS. THEY RESIDE ALMOST ENTIRELY
IN THE INTERACTIONS THAT TAKE PLACE IN THE
MARKETPLACE.”
- STEVE DENNING -
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
EFFICIENCY
STANDARDIZATION
COMPANIES CARE ABOUT
THIS HARMONIZES POORLY WITH UNPREDICTABLE CUSTOMER BEHAVIOR
AND NON-ALIGNED PRIORITIES
&
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
THE CURRENT PRACTICE
OF MANAGEMENT IS NOT
ALIGNED TO A NEW
WORLD WHERE
CUSTOMERS SUDDENLY
BECOME AN IMPORTANT
STRATEGIC ASSET.
COMPANIES HAVE BEEN DESIGNED TO KEEP
CUSTOMERS OUT.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
BRAND, DESIGN AND
ADVERTISING ARE ALL
TOOLS TO SAFELY KEEP
CUSTOMERS ON THE
OUTSIDE.
IF COMPANIES ARE TO REAP THE BENEFIT OF
DELIGHTING CUSTOMERS - THEY NEED TO RETHINK /
REDO THE WAY THEY MANAGE THEIR COMPANY and
market their products.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
INDUSTRY
TO CORE
BUSINESS
THE DEMISE FROM COMPANY TO
INDUSTRY AS A CONCEPT IS A POISONED PILL
- FROM A CUSTOMER
VALUE PERSPECTIVE
Companies concentrate on optimizing their core
business. Giving away products and services that they
would logically provide from a customer perspective,
but are not optimal when applying current business
and management logic.
Companies end up fighting for market share in ever
decreasing markets. Flatly excluding/ consciously
ignoring logical and lucrative extensions.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
THIS IS THE CUSTOMER-JOB-TO-BE-
DONE THE COMPANY HELPS SOLVE
WHEN IT LAUNCHES
INDUSTRY
TO CORE
BUSINESS
THE DEMISE FROM COMPANY TO
INDUSTRY AS A CONCEPT IS A POISONED PILL
- FROM A CUSTOMER
VALUE PERSPECTIVE
Companies concentrate on optimizing their core
business. Giving away products and services that they
would logically provide from a customer perspective,
but are not optimal when applying current business
and management logic.
Companies end up fighting for market share in ever
decreasing markets. Flatly excluding/ consciously
ignoring logical and lucrative extensions.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
THIS IS THE JOB IT IS HELPING
CUSTOMERS SOLVE TODAY
[COMPANIES GET STUCK IN THE IDEA OF THE ORIGINAL JOB. NOT SEEING THAT AS PEOPLE ARE
PERFORMING AND SOLVING THE JOB THEY REDESIGN AND FRAGMENT IT. COMPANIES GET
STUCK ON THE MAIN DESIGN, IGNORING CONCIOUSLY THE EXTENSIONS THAT EMERGE]
INDUSTRY
TO CORE
BUSINESS
THE DEMISE FROM COMPANY TO
INDUSTRY AS A CONCEPT IS A POISONED PILL
- FROM A CUSTOMER
VALUE PERSPECTIVE
Companies concentrate on optimizing their core
business. Giving away products and services that they
would logically provide from a customer perspective,
but are not optimal when applying current business
and management logic.
Companies end up fighting for market share in ever
decreasing markets. Flatly excluding/ consciously
ignoring logical and lucrative extensions.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
THIS IS THE JOB THE COMPANY IS
SOLVING IN THE FUTURE
[EVENTUALLY THE ORIGINAL JOB MIGHT END UP AS JUST A NICHE DELIVERY. THE
CUSTOMER HAS MOVED ON TO DIFFERENT WAYS OF SOLVING THE ORIGINAL JOB]
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
“So, the simplest explanation you’ll ever hear
of why succesful organizations ultimately
fail is this:
They fail when the leaders
fail to write of their own
depreciating intellectual
capital”.
- GARY HAMEL
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
43% of ceos now include customers in business
strategy development. 60% expect to do so in
the future.
The area in which CEOS
expect to see customer
influence grow the most;
their business strategy.
- BRIDGET VAN KRALINGEN, SENIOR VICE PRESIDENT,
IBM GLOBAL BUSINESS SERVICES
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
- CHRISTIAN MADSBJERG AND MIKKEL B. RASMUSSEN,
HBR.ORG, AN ANTHROPOLOGIST WALKS INTO A BAR
link
The biggest challenge CEOs face is the so called
complexity gap.
CEOs see a lack of customer
insight as their biggest deficit
in managing complexity. ..
And rank “customer
obsession” as the most
critical leadership trait.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
IBM: CEOs say customers come second only
to the c-suite in terms of the strategic
influence they wield (2013)
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
CXOS MOST RADICAL SHIFT MAY BE A NEW VIEW ON WHAT IT MEANS
TO COLLABORATE WITH CUSTOMERS.
“In the next few years we
want to build deep,
strategic relationships
with our customers,
enterprise-to-enterprise
relationships where the
‘customer is for life.’”
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
WE IDENTIFIED THREE KEY THEMES THAT WILL HELP YOU SHAPE
YOUR ORGANIZATION’S FUTURE:
•Open up to customer influence

• Pioneer digital-physical innovation

• Craft engaging customer experiences
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
“Customer experience …
is a fundamental dimension
of how a company competes.”
- JOSEPH PINE, COINED THE TERM EXPERIENCE ECONOMY
HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
We realized that if we
didn’t build our strategy
around how customers
experience our products,
a start-up with that focus
could eventually
overtake us.”
- PHILIP GERSKOVICH, SENIOR VICE PRESIDENT, ZEBRA TECHNOLOGIES
“Too many companies see customer experience
as a slogan exercise.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
Ed Thompson, an analyst at market research firm Gartner, says:
“Between 5% and 10% of companies truly have a customer culture at
their core, but the rest have been forced to care because all other
means of differentiation have been eroded over time. That’s why it is
currently a hot topic and has been very high on CEO agendas for the
last three years or so.”
In many consumer sectors, it has become increasingly difficult for
organisations to really stand out from the crowd in terms of pricing,
products or services.As a result, the last great bastion of
differentiation in recent years has become that of customer
experience – and that seems unlikely to change any time soon.
“the rest have been
forced to care because
all other means of
differentiation have
been eroded over time.”
link
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
accepting customers
as active stakeholders
is one sure way to quell
the factions and unite
the C-suite in a common
purpose.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUTPARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
The idea that customers benefit from engagement
with their insurance needs is part of Progressive’s
philosophy.
Encouraging the use of
products and services that
foster active involvement,
we can improve the
experience for everyone.
link
link
If one issue has the potential
to unite the C-suite to act in
concert, establishing trust-
based relationships with
customers stands at the top.
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
Apple, almost bankrupt in 1997 after years of 20th century managerial approach to
management was taken over by Steve Jobs. Who was a tyrant on behalf of the customers.
Spending four years cleaning up the company and throwing out employees who had no
direct impact on contributing to customer value. In 2001 Jobs had changed the company
and its culture and set it up for large scale rapid innovation - and the story of its success is
widely known.
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
link
SUCCESSFUL COMPANIES:
PARTII:SUCCESSFULCOMPANIES
PART II:
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PUT THE MOST IMPORTANT
PEOPLE INTO TEAMS
WORKING AUTONOMOUSLY
ON THE CUSTOMERS MOST
IMPORTANT PROBLEMS.
link
successful
companies:
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
“AS WE CONFIRMED IN OUR “NEXT 30-YEAR VISION,” WHICH
WE CREATED IN 2010, OUR ULTIMATE GOAL IS TO ALLEVIATE
SADNESS AND INCREASE EVERYONE'S HAPPINESS TO THE GREATEST
EXTENT POSSIBLE THROUGH THE INFORMATION REVOLUTION.”
- LETTER FROM THE CEO MESSAGE -
link
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
but NONE OF THIS helpS
if we are not seeing
the bigger picture…
PART III:
PARTIII:THEBIGPICTURE
IMAGE BY BEN LANSKY ON FLICKR.COM
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
“The problems that we can solve as a species,
is fundamentally limited by out capacity to
manage. to bring people together, to
coordinate, to accomplish things at scale. -
And I’m arguing today that this technology
has to be reinvented, root and branch, it is a
problem that is so urgent, so complex and
so eminently worthwhile. That none of us
who have a stake in the future of humanity
should be sitting at the sidelines.”
- GARY HAMEL
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
link
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
THE REASON
CUSTOMERS
DON’T CARE
IS BECAUSE
COMPANIES
DON’T CARE
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
customer
experience
2004
WEBSITE
2011
MOBILE FIRST
2015
information
architecture
User
experience
Analytics
CloudIOT
Mobile
Collab.
tech
2017
outcome
economy
MANAGEMENT
CROSS-CHANNEL OMNI+DELIVERY+PRODUCT
ACTIVE COLLABORATION
PARTNERING WITH THE CUSTOMER EVERY DAY
TO GET THE BEST POSSIBLE OUTCOME FOR THEIR JOB-2-B-D1
PASSIVE OFFER
SALES & ZERO MOMENTS OF TRUTH
CHANNEL
2004-2017 FROM INCREMENTAL 2 LOGARITHMIC CHANGE
PARTIII:THEBIGPICTURE
PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT
PARTII:SUCCESSFULCOMPANIES
PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
THANK YOU
FOR MORE RESOURCES AND IDEAS ON THIS SUBJECT
JOIN MY KNOWLEDGE NETWORK ON LINKEDIN
https://no.linkedin.com/in/helgetenno
HELGE
TENNØ
JOKULL OR VISIT HELGETENNO.COM

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Companies are designed to keep customers out

  • 1. Companies are designed to out! customers keep VIA CHUCK COKER ON FLICKR.COM don’t bring a knife to a gunfight - OUR 19TH CENTURY MODEL FOR COMMUNICATION IS BREAKING UNDER THE PRESSURE OF 21ST CENTURY CUSTOMERS, MARKETS AND SOCIETY.
  • 2. CORE IDEA / GAP / CHALLENGE DISCUSSED IN THE TALK: companies increasingly have to accommodate and woRk on the premise of the customer. adding huge strain to the current model of management - designed to keep customers out.
  • 3. link throughout the presentation I HAVE ADDED LINKS. just click: I HAVE TRIED TO DESIGN A VALUABLE RESOURCE - WITH DIRECT LINKS TO WHERE ALL THE IDEAS AND THOUGHTS ARE COMING FROM.
  • 4. communication is marketing is distribution is product EVERYTHING IS THE INTERFACE BETWEEN THE CUSTOMER AND THE COMPANY PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT PART I:
  • 5. “Marketing is not a function; it is the whole business seen from the customer’s point of view.” - PETER DRUCKER - PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 6. Marketing is not magicIF THE PRODUCT DOES EVERYTHING IT CAN TO KEEP CUSTOMERS OUT - THEN MARKETING CAN’T FIX THAT. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 7. This makes customer activation an integrated part of the product and it makes marketing and products the same thing - because they both have to accommodate and work on the premise of the customer. THE THIRD WAVE OF TECH. WELCOME TO WHAT TECHNOLOGY IS BRINGING NOW ISN’T JUST IMPROVEMENTS AND EFFICIENCY AROUND THE PRODUCT - IN THE COMPANY’S INTERNAL AND EXTERNAL VALUE CHAINS - IT IS CHANGES TO THE NATURE OF THE PRODUCTS THEMSELVES. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 8. Before the advent of modern information technology, products were mechanical and activities in the value chain were performed using manual, paper processes and verbal communication. The first wave of IT, during the 1960s and 1970s, automated individual activities in the value chain, from order processing and bill paying to computer-aided design and manufacturing resource planning. (See “How Information Gives You Competitive Advantage,” by Michael Porter and Victor Millar, HBR, July 1985.) The productivity of activities dramatically increased, in part because huge amounts of new data could be captured and analyzed in each activity. This led to the standardization of processes across companies— and raised a dilemma for companies about how to capture IT’s operational benefits while maintaining distinctive strategies. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION The rise of the internet, with its inexpensive and ubiquitous connectivity, unleashed the second wave of IT-driven transformation, in the 1980s and 1990s (see Michael Porter’s “Strategy and the Internet,” HBR, March 2001). This enabled coordination and integration across individual activities; with outside suppliers, channels, and customers; and across geography. It allowed firms, for example, to closely integrate globally distributed supply chains. The first two waves gave rise to huge productivity gains and growth across the economy. While the value chain was transformed, however, products themselves were largely unaffected. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION Now, in the third wave, IT is becoming an integral part of the product itself. Embedded sensors, processors, software, and connectivity in products (in effect, computers are being put inside products), coupled with a product cloud in which product data is stored and analyzed and some applications are run, are driving dramatic improvements in product functionality and performance. Massive amounts of new product-usage data enable many of those improvements. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION I II III link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 9. WHAT MAKES SMART, CONNECTED PRODUCTS FUNDAMENTALLY DIFFERENT IS NOT THE INTERNET, BUT THE CHANGING NATURE OF THE “THINGS”. HOW SMART, CONNECTED PRODUCTS ARE TRANSFORMING COMPETITION link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 10. SPEAKER NOTES: This quote went viral on LinkedIn in March 2015. It seemed to hit a nerve.. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 11. Tom Goodwin is senior vice president of strategy and innovation at Havas Media. It’s by Tom Goodwin,arguing that the coming battle for the customers will on the customer interfaces. link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 12. THESE COMPANIES REALIZE THAT THE MODERN AGE IS A TIME OF SCARCE ATTENTION AND ABUNDANT CONNECTIVITY, WHERE SMARTPHONES ARE OUR PRIMARY ACCESS AND POINT TO EVERYTHING; WHERE MONEY AND EVERYTHING IS DIGITAL;  - TOM GOODWIN - PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT link where the interface layer is where the profit is; your companies most profound business. WHERE PHYSICAL ASSETS AND EMPLOYEES ARE LIABILITIES; and where providing a slick, best in class human experience will create
  • 13. “TO MANY MANAGERS, THE PRODUCT IS THE BUSINESS,” WRITES NIRAJ DAWAR IN TILT. “FIRMS CONTINUE TO SPEND INORDINATE AMOUNTS OF TIME, EFFORT, AND RESOURCES ON THEIR PRODUCTS. IN FACT, BUSINESSES ARE STRUCTURED AROUND THEIR PRODUCTS… BUT, THE ANSWER TO QUESTIONS LIKE ‘WHY DO CUSTOMERS BUY FROM US?’ DON’T RESIDE IN PRODUCTS. THEY RESIDE ALMOST ENTIRELY IN THE INTERACTIONS THAT TAKE PLACE IN THE MARKETPLACE.” - STEVE DENNING - link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 14. EFFICIENCY STANDARDIZATION COMPANIES CARE ABOUT THIS HARMONIZES POORLY WITH UNPREDICTABLE CUSTOMER BEHAVIOR AND NON-ALIGNED PRIORITIES & PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 16. THE CURRENT PRACTICE OF MANAGEMENT IS NOT ALIGNED TO A NEW WORLD WHERE CUSTOMERS SUDDENLY BECOME AN IMPORTANT STRATEGIC ASSET. COMPANIES HAVE BEEN DESIGNED TO KEEP CUSTOMERS OUT. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 17. BRAND, DESIGN AND ADVERTISING ARE ALL TOOLS TO SAFELY KEEP CUSTOMERS ON THE OUTSIDE. IF COMPANIES ARE TO REAP THE BENEFIT OF DELIGHTING CUSTOMERS - THEY NEED TO RETHINK / REDO THE WAY THEY MANAGE THEIR COMPANY and market their products. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 18. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT THIS IS THE CUSTOMER-JOB-TO-BE- DONE THE COMPANY HELPS SOLVE WHEN IT LAUNCHES
  • 19. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT THIS IS THE JOB IT IS HELPING CUSTOMERS SOLVE TODAY [COMPANIES GET STUCK IN THE IDEA OF THE ORIGINAL JOB. NOT SEEING THAT AS PEOPLE ARE PERFORMING AND SOLVING THE JOB THEY REDESIGN AND FRAGMENT IT. COMPANIES GET STUCK ON THE MAIN DESIGN, IGNORING CONCIOUSLY THE EXTENSIONS THAT EMERGE]
  • 20. INDUSTRY TO CORE BUSINESS THE DEMISE FROM COMPANY TO INDUSTRY AS A CONCEPT IS A POISONED PILL - FROM A CUSTOMER VALUE PERSPECTIVE Companies concentrate on optimizing their core business. Giving away products and services that they would logically provide from a customer perspective, but are not optimal when applying current business and management logic. Companies end up fighting for market share in ever decreasing markets. Flatly excluding/ consciously ignoring logical and lucrative extensions. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT THIS IS THE JOB THE COMPANY IS SOLVING IN THE FUTURE [EVENTUALLY THE ORIGINAL JOB MIGHT END UP AS JUST A NICHE DELIVERY. THE CUSTOMER HAS MOVED ON TO DIFFERENT WAYS OF SOLVING THE ORIGINAL JOB]
  • 23. “So, the simplest explanation you’ll ever hear of why succesful organizations ultimately fail is this: They fail when the leaders fail to write of their own depreciating intellectual capital”. - GARY HAMEL link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 25. 43% of ceos now include customers in business strategy development. 60% expect to do so in the future. The area in which CEOS expect to see customer influence grow the most; their business strategy. - BRIDGET VAN KRALINGEN, SENIOR VICE PRESIDENT, IBM GLOBAL BUSINESS SERVICES link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 26. - CHRISTIAN MADSBJERG AND MIKKEL B. RASMUSSEN, HBR.ORG, AN ANTHROPOLOGIST WALKS INTO A BAR link The biggest challenge CEOs face is the so called complexity gap. CEOs see a lack of customer insight as their biggest deficit in managing complexity. .. And rank “customer obsession” as the most critical leadership trait. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 27. IBM: CEOs say customers come second only to the c-suite in terms of the strategic influence they wield (2013) link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 28. CXOS MOST RADICAL SHIFT MAY BE A NEW VIEW ON WHAT IT MEANS TO COLLABORATE WITH CUSTOMERS. “In the next few years we want to build deep, strategic relationships with our customers, enterprise-to-enterprise relationships where the ‘customer is for life.’” link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 29. WE IDENTIFIED THREE KEY THEMES THAT WILL HELP YOU SHAPE YOUR ORGANIZATION’S FUTURE: •Open up to customer influence
 • Pioneer digital-physical innovation
 • Craft engaging customer experiences link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 32. “Customer experience … is a fundamental dimension of how a company competes.” - JOSEPH PINE, COINED THE TERM EXPERIENCE ECONOMY HBR, DISNEY, ADVANCING THE CUSTOMER EXPERIENCE link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 33. link We realized that if we didn’t build our strategy around how customers experience our products, a start-up with that focus could eventually overtake us.” - PHILIP GERSKOVICH, SENIOR VICE PRESIDENT, ZEBRA TECHNOLOGIES “Too many companies see customer experience as a slogan exercise. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 34. Ed Thompson, an analyst at market research firm Gartner, says: “Between 5% and 10% of companies truly have a customer culture at their core, but the rest have been forced to care because all other means of differentiation have been eroded over time. That’s why it is currently a hot topic and has been very high on CEO agendas for the last three years or so.” In many consumer sectors, it has become increasingly difficult for organisations to really stand out from the crowd in terms of pricing, products or services.As a result, the last great bastion of differentiation in recent years has become that of customer experience – and that seems unlikely to change any time soon. “the rest have been forced to care because all other means of differentiation have been eroded over time.” link PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 35. link accepting customers as active stakeholders is one sure way to quell the factions and unite the C-suite in a common purpose. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 36. PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUTPARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT The idea that customers benefit from engagement with their insurance needs is part of Progressive’s philosophy. Encouraging the use of products and services that foster active involvement, we can improve the experience for everyone. link
  • 37. link If one issue has the potential to unite the C-suite to act in concert, establishing trust- based relationships with customers stands at the top. PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 38. Apple, almost bankrupt in 1997 after years of 20th century managerial approach to management was taken over by Steve Jobs. Who was a tyrant on behalf of the customers. Spending four years cleaning up the company and throwing out employees who had no direct impact on contributing to customer value. In 2001 Jobs had changed the company and its culture and set it up for large scale rapid innovation - and the story of its success is widely known. PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT link SUCCESSFUL COMPANIES: PARTII:SUCCESSFULCOMPANIES PART II: PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 40. PUT THE MOST IMPORTANT PEOPLE INTO TEAMS WORKING AUTONOMOUSLY ON THE CUSTOMERS MOST IMPORTANT PROBLEMS. link successful companies: PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 41. “AS WE CONFIRMED IN OUR “NEXT 30-YEAR VISION,” WHICH WE CREATED IN 2010, OUR ULTIMATE GOAL IS TO ALLEVIATE SADNESS AND INCREASE EVERYONE'S HAPPINESS TO THE GREATEST EXTENT POSSIBLE THROUGH THE INFORMATION REVOLUTION.” - LETTER FROM THE CEO MESSAGE - link PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 42. but NONE OF THIS helpS if we are not seeing the bigger picture… PART III: PARTIII:THEBIGPICTURE IMAGE BY BEN LANSKY ON FLICKR.COM PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 46. “The problems that we can solve as a species, is fundamentally limited by out capacity to manage. to bring people together, to coordinate, to accomplish things at scale. - And I’m arguing today that this technology has to be reinvented, root and branch, it is a problem that is so urgent, so complex and so eminently worthwhile. That none of us who have a stake in the future of humanity should be sitting at the sidelines.” - GARY HAMEL PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT link
  • 48. THE REASON CUSTOMERS DON’T CARE IS BECAUSE COMPANIES DON’T CARE PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
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  • 51. customer experience 2004 WEBSITE 2011 MOBILE FIRST 2015 information architecture User experience Analytics CloudIOT Mobile Collab. tech 2017 outcome economy MANAGEMENT CROSS-CHANNEL OMNI+DELIVERY+PRODUCT ACTIVE COLLABORATION PARTNERING WITH THE CUSTOMER EVERY DAY TO GET THE BEST POSSIBLE OUTCOME FOR THEIR JOB-2-B-D1 PASSIVE OFFER SALES & ZERO MOMENTS OF TRUTH CHANNEL 2004-2017 FROM INCREMENTAL 2 LOGARITHMIC CHANGE PARTIII:THEBIGPICTURE PARTI:COMPANEISAREDESIGNEDTOKEEPCUSTOMERSOUT PARTII:SUCCESSFULCOMPANIES PARTI:COMMUNICATIONISMARKETINGISDISTRIBUTIONISPRODUCT
  • 52. THANK YOU FOR MORE RESOURCES AND IDEAS ON THIS SUBJECT JOIN MY KNOWLEDGE NETWORK ON LINKEDIN https://no.linkedin.com/in/helgetenno HELGE TENNØ JOKULL OR VISIT HELGETENNO.COM