Business
                       Insights




A scenario driven approach

Daniel W. Rasmus
Director of Business Insights
Microsoft Business Division
drasmus@microsoft.com
Plausible


Relevant

Divergent

Challenging
The World

                The Industry
                                          Market
                                           size, growth,
                                           and volatility
                         High
                      Influence
                                          Customers
                                          Competitors
                    Key Factors:
Social             Some Influence         Suppliers
Technological                             Owners
                Environmental Factors:
Economic         Little or No Influence   Communities
Environmental                             Partners
Political
The Character of Work
      Consumers                                                                     Workers
•   Population shifts                  2014 - 2019                         •   Workforce participation /
•   Demographic shifts                                                         education
•   Distribution of wealth                                                 •   Immigration
•   Patterns of                                                            •   Retirement
    consumption
                                                                           •   Needs / expectations for
•   Personal measures of                                                       work
    success
                                                                           •   Performance measures
    • Business-consumer
      relationships
         • Authenticity
         • Immediacy /
           intimacy
         • Transparency
    • Consumer influence on
      business

              Business
     •   Organizational forms /                                                            Other Influences
         decision-making
                                                                                       •    Institutional skepticism
     •   Business models
                                                                                       •    Social values /
     •   Models for innovation /                                                            measures of success
         pace of innovation
                                                                                       •    Government
     •   Locus of innovation,            •   Organizational transparency                    intervention
         wages, capabilities             •   Intellectual property
                                         •   Model-driven approaches                   •    Regulations
     •   Performance measures            •   Popularity of US
         and metrics
Consumers                                                                   Workers
                             •           Population
                                                                                                            •     Workforce participation /
                                                                                                                  education
                             •           Demographic shifts
                                                                                                            •     Immigration
                             •           Distribution of wealth
                                                                                                            •     Retirement
                             •           Patterns of consumption
                                                                                                            •     Needs / expectations for
                             •           Personal measures of
                                                                                                                  work
                                         success
                                                                                                            •     Performance measures

                                 •       Business-consumer
                                         relationships
                                                • Authenticity
                                                • Immediacy /
                                                    intimacy
                                                • Transparency
                                 •       Consumer influence on
                                         business




                                                  Business
                                     •         Organizational forms /
                                               decision-making                                                                 Other Influences
                                     •         Business models                                                            •      Institutional skepticism

                                     •         Models for innovation / pace                                               •      Social values / measures
                                               of innovation                                                                     of success

                                     •          Locus of                                                                  •      Government intervention
                                               innovation, wages, capabilitie   •   Organizational transparency
                                               s                                •   Intellectual property                 •      Regulations
                                                                                •   Model-driven approaches
                                     •         Performance measures and         •   Popularity of US
                                               metrics




Capabilities and practices           Information and communications                                                                                         Innovation and Adoption
• Devices                            • Role of content                                                                                                      • Pace of innovation/adoption
• Data storage                       • Ability to absorb/interpret data                                                                                     • Invention vs. reapplication
• Connectivity                       • Prevalent metaphors for                                                                                              • What’s after the internet?
• Self-organizing                      interfaces
  technology                         • Visualization tools
• Locus of computing                 • Multi-tasking
• Relationship of IT and
  business                                                                                                  Potential threats
                                                                                                            • Security models
                                                                                                            • IT as a global threat
PLAYING FIELD:
     Geopolitical and Social World

BORDERED,                            BORDERLESS, G
LOCAL                                LOBAL
ORGANIZATIONAL FORM:
        Leadership and Innovation


DE-CENTRALIZED,                      CENTRALIZED,
―BOTTOM-UP‖                         ―TOP-DOWN‖
Centralized
                        ―Top-Down‖




            Continental
                                  Proud Tower
               Drift


Bordered,                                         Borderless,
 Local/                                             Global
Regional



             Frontier                 Freelance
             Friction                   Planet



                         Networked
                        ―Bottom-Up‖
Proud Tower
              This is a world in which…
CENTRALIZED




                   Borders are ever-more
                   fluid, and global corporations
                   are the primary organizing
                   principle of commerce at every
                   level
                   Security and intelligence needs
                   tend to outweigh issues of
                   privacy, and U.S. military and
                   global corporations form
                   increasingly close relationships
                Corporations pay more attention to issues of governance,
                accountability and sustainability, recovering some civic trust. But
                new global and social tensions are rising as the century’s second
                decade gets underway


                                                                   BORDERLESS
Proud Tower – Driving Forces


               • Steady economic                      • Pervasive                            • Increasingly
                 recovery, largely                      surveillance, less                     centralized, both
                 led by the U.S.                        privacy                                in terms of
               • Middle East                          • Strengthening                          leadership and
                 tensions cool                          middle                                 data access,
               • More barriers to                       class…and more                         collection,
                 entry legislated                       mobile too                             storage
                 for new                              • Return of                            • Managed,
                 corporations                           ―Organizational                        incremental
               • Global                                 Man‖ and the                           innovation
                 oligopolies                            company career                       • Scale uber alles
                 dominate                             • Homogonous                           • Corporate
                                                        pop culture                            universities play
                                     Social Context




                                                        worldwide                              important role




                                                                             Organizations
Geopolitical




                                                                                             • ―Archologies‖:
                                                                                               corp. towns the
                                                                                               norm
Continental Drift




                                                                  CENTRALIZED
This is a world in which…
  Increasing global problems—
  terror, economic turmoil, and
  environmental degradation—
  lead to the return of big
  government across the world
  Though the US remains
  militarily powerful, a series of
  strategic missteps significantly
  weakens its economic and
  cultural influence

Major governments in Europe and Asia raise taxes to pay for
large infrastructure projects intended to kick-start a stagnant
and more regionalized world economy.


   BORDERED
Continental Drift – Driving Forces


               • Strained inter-                     • Nationalism, re                     • Regional
                 national                              gionalism, and                        leaders, market
                 relations                             protectionism                         s, brands and
               • Stagnant world                      • Strong local                          products
                 economy                               cultural identity                   • Need for
               • Strong anti-U.S.                    • No                                    parallel
                 sentiment                             improvements                          systems and
               • More trade                            in education                          processes
                 barriers                            • Religious                           • Less shared
               • Regional                              movements                             learning
                 standards and                         more                                • Outsourced
                 regulations                           conservative                          work is (re-)in-
                                    Social Context




               • Declining world                     • Physical                              sourced




                                                                           Organizations
                                                                                           • More
Geopolitical




                 health                                movement—
                                                       atoms—as                              automation, les
                                                       important as                          s immigration
                                                       bits
Frontier Friction
   BORDERED


This is a world in which…


   Power and influence
   seep away from
   hierarchical institutions
   and corporations, as
   old rules stop working.




                                                             DE-CENTRALIZED
Facing a dynamic and dangerous world, people crave a sense
of belonging and focus on communities and relationships.
This gives rise to fundamentalism as well as new ―swarm‖
models of communities that assemble.
Frontier Friction – Driving Forces



                • Loss of                               • Fatigue with                        • ―Incumbent‖
                  confidence in                           complexity                            companies
                  governments and                       • Growth in                             troubled:
                  international                           fundamentalism                        IP, workforce, mar
                  bodies                                • Taking care of                        kets, liabilities…
                • Increase in the                         one’s own: focus                    • Street smarts
                  ―grey‖ economy                          on family, return                     trump technical
                • Brain-drain from                        of ―tribe‖ and                        expertise
                  neoconservative                         ―micro-cultures‖                    • Innovation
                  US                                    • Individual                            succeeds by
                • Communitization                         self-reliance                         taking into
                  of public                             • Personal security                     account
                  services, esp. at                       at a premium                          community
                  the local level                                                               problems
                • General sense of                                                            • Increasing
                                       Social Context




                                                                              Organizations
                  scarcity, shortage                                                            influence of
Geopolitical




                  s                                                                             NGOs and social
                • More violence:                                                                entrepreneurs
                  ―not-so-smart‖
                  mobs too
Freelance Planet
                                                                      BORDERLESS


                 This is a world in which…
                     Network, speed, and
                     creativity rule. Traditional
                     hierarchies become
                     increasingly ineffectual, as
                     emergent systems
                     succeed in surprising new
                     ways, including distributed
                     intelligence networks
DE-CENTRALIZED




                     which greatly enhance
                     security.

                  Voices of the previously disenfranchised enjoy growing
                  influence; even so, a rapidly changing technological society is
                  challenging to many institutions and people.
Freelance Planet – Driving Forces



                • Turbulent world                       • Distributed                        • Fast-paced
                  economy                                 surveillance and                     collaborative
                • Economic—and                            security                             innovation and
                  social—upheaval                       • Popular                              change
                  in Europe's aging                       spirituality                       • Value webs
                  societies                               movements                            dominate
                • Disorienting                          • Smells like                        • Reputation more
                  world                                   opportunity                          important; brand
                • Global                                  and optimism                         more personal
                  identification and                    • Open access to                     • Fluid invention
                  reputation                              info. and                            and
                  systems                                 education                            re-invention
                • Massive mobility                      • Less loyalty                       • Short half-life of
                                                          between                              success
                                                          employees/-ers
                                       Social Context




                                                                             Organizations
Geopolitical
Continental    Proud
   Drift       Tower




 Frontier     Freelance
 Friction       Planet
is Everybody's Business




   www.listeningtothefuture.com
The task is not so much to see what no one
yet has seen, but to think what nobody has
yet thought about that which everyone sees
                           – Schopenhauer
© 2006 Microsoft Corporation. All rights reserved.
This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

Scenarios and Project Management

  • 1.
    Business Insights A scenario driven approach Daniel W. Rasmus Director of Business Insights Microsoft Business Division drasmus@microsoft.com
  • 3.
  • 5.
    The World The Industry Market size, growth, and volatility High Influence Customers Competitors Key Factors: Social Some Influence Suppliers Technological Owners Environmental Factors: Economic Little or No Influence Communities Environmental Partners Political
  • 8.
    The Character ofWork Consumers Workers • Population shifts 2014 - 2019 • Workforce participation / • Demographic shifts education • Distribution of wealth • Immigration • Patterns of • Retirement consumption • Needs / expectations for • Personal measures of work success • Performance measures • Business-consumer relationships • Authenticity • Immediacy / intimacy • Transparency • Consumer influence on business Business • Organizational forms / Other Influences decision-making • Institutional skepticism • Business models • Social values / • Models for innovation / measures of success pace of innovation • Government • Locus of innovation, • Organizational transparency intervention wages, capabilities • Intellectual property • Model-driven approaches • Regulations • Performance measures • Popularity of US and metrics
  • 9.
    Consumers Workers • Population • Workforce participation / education • Demographic shifts • Immigration • Distribution of wealth • Retirement • Patterns of consumption • Needs / expectations for • Personal measures of work success • Performance measures • Business-consumer relationships • Authenticity • Immediacy / intimacy • Transparency • Consumer influence on business Business • Organizational forms / decision-making Other Influences • Business models • Institutional skepticism • Models for innovation / pace • Social values / measures of innovation of success • Locus of • Government intervention innovation, wages, capabilitie • Organizational transparency s • Intellectual property • Regulations • Model-driven approaches • Performance measures and • Popularity of US metrics Capabilities and practices Information and communications Innovation and Adoption • Devices • Role of content • Pace of innovation/adoption • Data storage • Ability to absorb/interpret data • Invention vs. reapplication • Connectivity • Prevalent metaphors for • What’s after the internet? • Self-organizing interfaces technology • Visualization tools • Locus of computing • Multi-tasking • Relationship of IT and business Potential threats • Security models • IT as a global threat
  • 10.
    PLAYING FIELD: Geopolitical and Social World BORDERED, BORDERLESS, G LOCAL LOBAL
  • 11.
    ORGANIZATIONAL FORM: Leadership and Innovation DE-CENTRALIZED, CENTRALIZED, ―BOTTOM-UP‖ ―TOP-DOWN‖
  • 12.
    Centralized ―Top-Down‖ Continental Proud Tower Drift Bordered, Borderless, Local/ Global Regional Frontier Freelance Friction Planet Networked ―Bottom-Up‖
  • 13.
    Proud Tower This is a world in which… CENTRALIZED Borders are ever-more fluid, and global corporations are the primary organizing principle of commerce at every level Security and intelligence needs tend to outweigh issues of privacy, and U.S. military and global corporations form increasingly close relationships Corporations pay more attention to issues of governance, accountability and sustainability, recovering some civic trust. But new global and social tensions are rising as the century’s second decade gets underway BORDERLESS
  • 14.
    Proud Tower –Driving Forces • Steady economic • Pervasive • Increasingly recovery, largely surveillance, less centralized, both led by the U.S. privacy in terms of • Middle East • Strengthening leadership and tensions cool middle data access, • More barriers to class…and more collection, entry legislated mobile too storage for new • Return of • Managed, corporations ―Organizational incremental • Global Man‖ and the innovation oligopolies company career • Scale uber alles dominate • Homogonous • Corporate pop culture universities play Social Context worldwide important role Organizations Geopolitical • ―Archologies‖: corp. towns the norm
  • 15.
    Continental Drift CENTRALIZED This is a world in which… Increasing global problems— terror, economic turmoil, and environmental degradation— lead to the return of big government across the world Though the US remains militarily powerful, a series of strategic missteps significantly weakens its economic and cultural influence Major governments in Europe and Asia raise taxes to pay for large infrastructure projects intended to kick-start a stagnant and more regionalized world economy. BORDERED
  • 16.
    Continental Drift –Driving Forces • Strained inter- • Nationalism, re • Regional national gionalism, and leaders, market relations protectionism s, brands and • Stagnant world • Strong local products economy cultural identity • Need for • Strong anti-U.S. • No parallel sentiment improvements systems and • More trade in education processes barriers • Religious • Less shared • Regional movements learning standards and more • Outsourced regulations conservative work is (re-)in- Social Context • Declining world • Physical sourced Organizations • More Geopolitical health movement— atoms—as automation, les important as s immigration bits
  • 17.
    Frontier Friction BORDERED This is a world in which… Power and influence seep away from hierarchical institutions and corporations, as old rules stop working. DE-CENTRALIZED Facing a dynamic and dangerous world, people crave a sense of belonging and focus on communities and relationships. This gives rise to fundamentalism as well as new ―swarm‖ models of communities that assemble.
  • 18.
    Frontier Friction –Driving Forces • Loss of • Fatigue with • ―Incumbent‖ confidence in complexity companies governments and • Growth in troubled: international fundamentalism IP, workforce, mar bodies • Taking care of kets, liabilities… • Increase in the one’s own: focus • Street smarts ―grey‖ economy on family, return trump technical • Brain-drain from of ―tribe‖ and expertise neoconservative ―micro-cultures‖ • Innovation US • Individual succeeds by • Communitization self-reliance taking into of public • Personal security account services, esp. at at a premium community the local level problems • General sense of • Increasing Social Context Organizations scarcity, shortage influence of Geopolitical s NGOs and social • More violence: entrepreneurs ―not-so-smart‖ mobs too
  • 19.
    Freelance Planet BORDERLESS This is a world in which… Network, speed, and creativity rule. Traditional hierarchies become increasingly ineffectual, as emergent systems succeed in surprising new ways, including distributed intelligence networks DE-CENTRALIZED which greatly enhance security. Voices of the previously disenfranchised enjoy growing influence; even so, a rapidly changing technological society is challenging to many institutions and people.
  • 20.
    Freelance Planet –Driving Forces • Turbulent world • Distributed • Fast-paced economy surveillance and collaborative • Economic—and security innovation and social—upheaval • Popular change in Europe's aging spirituality • Value webs societies movements dominate • Disorienting • Smells like • Reputation more world opportunity important; brand • Global and optimism more personal identification and • Open access to • Fluid invention reputation info. and and systems education re-invention • Massive mobility • Less loyalty • Short half-life of between success employees/-ers Social Context Organizations Geopolitical
  • 22.
    Continental Proud Drift Tower Frontier Freelance Friction Planet
  • 25.
    is Everybody's Business www.listeningtothefuture.com
  • 27.
    The task isnot so much to see what no one yet has seen, but to think what nobody has yet thought about that which everyone sees – Schopenhauer
  • 29.
    © 2006 MicrosoftCorporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.