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Digital Revolutions and Business Disruptions
William El Kaim
Oct 2016 - V 2.3
This Presentation is part of the
Enterprise Architecture Digital Codex
http://www.eacodex.com/Copyright © William El Kaim ...
Plan
The Third Industrial Revolution
• The Entrepreneurial Age
• Digital Revolution and Disruption
• Competing In The Digi...
The 3rd Industrial Revolution
Jeremy Rifkin
• We’re in the first stage of a paradigm shift that is reshaping not only the
...
The First And Second Industrial Revolutions Scaled
Top-down
• First Industrial Revolution driven by coal and steam power
•...
The Third Industrial Revolution Favors Lateral
Power
• 3rd = Internet for communication and renewable energy
• When: Now -...
If We Had To Summarize Each Revolution By A
Movie
Copyright © William El Kaim 2016 7
The third revolution …
Copyright © William El Kaim 2016 8
Plan
• The Third Industrial Revolution
The Entrepreneurial Age
• Digital Revolution and Disruption
• Competing In The Digi...
Companies Were Designed like Machines …
• The average life expectancy of a company in the S&P 500 has dropped
precipitousl...
Companies Were Designed like Machines …
Copyright © William El Kaim 2016 11
Companies Were Designed like Machines …
Copyright © William El Kaim 2016 12Source: Bloomberg
Companies Were Designed like Machines …
• Companies were built on a corporate model of “knowledge stocks”
• Developing a p...
Red Queen Effect
Source: MeedabyteCopyright © William El Kaim 2016 14
Copyright © William El Kaim 2016 15
Welcome to a New World
• The transition from new idea to pilot to going well to early market and then
scaling the business...
Pace of Technology Adoption
Copyright © William El Kaim 2016 17
Copyright © William El Kaim 2016 18
Moore's law visualized through the evolution of Lara
Croft face in games
by Elena SilenokCopyright © William El Kaim 2016 ...
The Entrepreneurial Age Where Re-imagination Is
Crucial
• The Mass customization is accelerated through a rapid adoption p...
Are You a Digital Barbarian?
• Aggregators redefine the interface between traditional actors and customers,
putting pressu...
RE-imagination of Everything
• You should not only re-invent your brand and product, you should re-imagine
everything (Mar...
RE-imagination of Everything
• Digital transformation occurs incrementally and from the inside out.
• It requires changing...
Digital Disruption Has Enabled New Institutional
Options with Distinct Economics
Copyright © William El Kaim 2016 24Source...
Each Type of Innovations Has Its Problems!
• Neutralization
• a product is good enough to achieve parity with the competit...
Every Business Is a Digital Business
From Digitally Disrupted to Digital Disrupter
Source: Accenture Technology Vision 201...
Source:
Accenture
Technology
Vision 2014
Copyright © William El Kaim 2016 27
Technology Operates on Two Axis
Making Things And Moving Things
Source: Sam Lessin, Facebook Keynote, PhocusWright Confere...
But Value From Bits Grows Faster Than The Value
From Atoms
Value from bits (information content) grows
faster than the val...
Think Long Tail
• Popularized by Chris Anderson in an October 2004 Wired magazine article
(Amazon.com)
• The term gained p...
Think Long Tail
Fractal Disruption Engine
• The Long Tail vision is then applied in every subset of your market, in a
frac...
From Value Chains to Value Networks
• Value Network: value creating system
where all involved stakeholders co-
produce val...
From System of Record to System of Engagement
Copyright © William El Kaim 2016 33
Successful and Sustainable Enterprises Will
Harness the Stream of Digital Innovation
Source: On Web Strategy BlogCopyright...
Plan
• The Third Industrial Revolution
• The Entrepreneurial Age
Digital Revolution and Disruption
• Competing In The Digi...
Digital Revolution and Disruption
• The digital revolution will lead to a profound change of the society. New
usages, new ...
Digital Revolution and Disruption
• The environments which are characterized by rapid, systemic and radical
change require...
Schumpeter Creative Destruction
• The expression "creative destruction" was popularized by Joseph Schumpeter,
particularly...
What is Disruption?
Jean-Marie Dru Definition
• Jean Marie DRU first coined the term Disruption in 1992
and registered the...
What is Disruption?
Incremental vs. Disruptive (Radical)
Copyright © William El Kaim 2016 40Source: Microsoft
What is Disruption?
Clayton Christensen Definition
• Clayton Christensen, a Harvard Business School professor, defined
“di...
What is Disruption?
Christensen Definition
Copyright © William El Kaim 2016 42
Disruption and S-curves
« We’re living in a world where
people can become businesses
in 60 seconds »
B. Chesky (AirBnB)
Co...
Evolution vs. Revolution
Source: Mastering 2020 - Rolland Berger Consulting
Example: iPhone
Example: TV
moving to LED
tech...
Example: Disruption in Travel Industry
1 2 3
1
2
3
Copyright © William El Kaim 2016 45
https://holvi.com/
Example: A Bank Without being a bank!
Copyright © William El Kaim 2016 46
Example: Number26 A New Online Bank
https://number26.de/en/Copyright © William El Kaim 2016 47
Example: Number26 A New Online Bank
Copyright © William El Kaim 2016 48
https://www.hioscar.com/
Example: New Insurance, free service
Copyright © William El Kaim 2016 49
Innovate in Business Models
• Definitions of “business model” vary, but most people would agree that it
describes how a co...
Innovate in Business Models
The Six Keys to Success
• 1. A more personalized product or service.
• Many new models offer p...
Innovate in Business Models
The Six Keys to Success
• 4. Usage-based pricing.
• Some models charge customers when they use...
Innovate in Business Models
The Six Keys to Success
Copyright © William El Kaim 2016 53
In theory, the more of
the six fea...
Innovate in Business Models
Business Model Canvas to Help?
Copyright © William El Kaim 2016 54Source: Strategyzer
Innovate in Business Models
• From inside-out to outside-in
• Always be open to external ideas
• Personalized offers in a ...
The RISE of Unicorns
• “The Unicorns”, the billion-dollar
tech startup was supposed to be
the stuff of myth said Forbes. N...
More on Disruption
• Clayton Christensen
• Talk given at the Gartner Symposium ITExpo 2011 on October 2011
• How Pursuit o...
Plan
• The Third Industrial Revolution
• The Entrepreneurial Age
• Digital Revolution and Disruption
Competing In The Digi...
Competing In The Digital Age
Seven Forces At Work
• New Pressure On Prices And Margins
• Competitors Emerge From Unexpecte...
Competing In The Digital Age
Seven Forces at Work
• New Pressure On Prices And Margins
• Digital technologies create near-...
Competing In The Digital Age
Seven Forces at Work
• Winner-takes-all Dynamics
• Digital businesses reduce transaction and ...
Competing In The Digital Age
Seven Forces at Work
• Plug-and-play Business Models
• As digital forces reduce transaction c...
Competing In The Digital Age
Seven Forces at Work
• Growing Talent Mismatches
• Software replaces labor in digital busines...
Competing In The Digital Age
Four Principles For The Open World (Don Tapscott)
• The new open connected world will be gove...
Competing In The Digital Age
Adopting a New Digital Operating Model
• Today’s fastest growing, most profoundly impactful c...
Competing In The Digital Age
Company as Lean, Mean, Learning Machines
• Intense bias to action and a tolerance for risk, e...
Adopting a New Digital Operating Model
Company as Lean, Mean, Learning Machines
• The physical world that we used to value...
Adopting a New Digital Operating Model
Source: Aaron DignanCopyright © William El Kaim 2016 68
Adopting a New Digital Operating Model
Purpose: Why Are We Doing This?
• Digital World: Companies are often extremely upfr...
Adopting a New Digital Operating Model
Process: How Will We Do This?
• While an organization’s processes are initially dev...
Adopting a New Digital Operating Model
People: Who Will Do This?
• Value great people. Some call them “A Players.” Others ...
Adopting a New Digital Operating Model
People: Who Will Do This?
• The importance of passion and capability to act.
• Prev...
Adopting a New Digital Operating Model
Product: What Are We Doing?
• Product is anything that an organization offers its c...
Adopting a New Digital Operating Model
Platform: Build The Minimum Enterprise Viable Platform
• Ecosystems are dynamic and...
Adopting a New Digital Operating Model
Platform: To Be Built With IT
Source: CapgeminiCopyright © William El Kaim 2016 75
Adopting a New Digital Operating Model
Source: PWCCopyright © William El Kaim 2016 76
Plan
• The Third Industrial Revolution
• The Entrepreneurial Age
• Digital Revolution and Disruption
• Competing In The Di...
A New Consumer Reality Is Emerging
• Defined by an any-where/anytime/any device expectation
of accessibility and engagemen...
The Networked Brand
Blast Radius Vision
• Branding is dead and replaced by Networked brand
• Need to create powerful bond ...
Focus On User Values & Touchpoints
Source: Microsoft 2013Copyright © William El Kaim 2016 80
Focus On User Values & Touchpoints
• By 2020 the customer will manage 85% of the relationship with an enterprise
without i...
What Is To Be Done?
• Fix the Basic First!
• Companies are often aware of the problems but are not committed
to solve them...
What Is To Be Done?
Source: Steven Van BelleghenCopyright © William El Kaim 2016 83
What Is To Be Done?
Moving Away from the historical sales funnel…
Source: The Robert Report, The Trouble
With Travel Distr...
Purpose is like Shared Value
It helps creating Bonds …
From annual Plan to 3 months marketing project plan
Ambition is the...
What Is To Be Done?
Fully Integrated Brand Retailing
• Multichannel retailing is most often associated with retailers that...
What Is To Be Done?
Key Ecosystems Are Expanding Across More Screens
It’s no longer just
about smartphones
Source: MobileV...
What Is To Be Done?
Omni-Channel is the New Normal!
With the convergence of physical retail formats, digital services, and...
What Is To Be Done?
Anticipating Competitive Experiences
• Consumers are driven more by the
experiences that companies cre...
What Is To Be Done?
Upstream Activities Are Being Commoditized
• Upstream activities (such as sourcing, production, and lo...
What Is To Be Done?
Investing in Downstream Activities To Enable Value Creation
• Downstream activities aimed at reducing ...
What Is To Be Done?
Shifting Source Of Competitive Advantage
Often neglected
Costly and time consuming
Growth Hacking tech...
What Is To Be Done?
Using Design Thinking
Copyright © William El Kaim 2016 93
What Is To Be Done?
Marketing to win each moment!
• The shift to constant connectivity is one that’s transforming how comp...
Copyright © William El Kaim 2016 95
What Is To Be Done?
Marketing to win each moment!
• Technology leaves consumers trying to choose between a dizzying array ...
What Is To Be Done?
Zero Moment Of Truth
• 1. Zero Moment of Truth (ZMOT)
• When the consumer is starting to explore choic...
What Is To Be Done?
Ultimate Moment of Truth (UMOT)
• Brian Solis added a Fourth one:
The Ultimate Moment of Truth
(UMOT)
...
Digital Darwinism
Source: AltimeterCopyright © William El Kaim 2016 99
Plan
• The Third Industrial Revolution
• The Entrepreneurial Age
• Digital Revolution and Disruption
• Competing In The Di...
Source: TheFamily
Copyright © William El Kaim 2016 101
Six Steps of Digital Transformation
Copyright © William El Kaim 2016 102
Plateau of
Productivity
Slope of
enlightenment
Peak of
Inflated
Expectation
Innovation
Trigger
Trough of
Disillusionment
M...
Are You Ready?
• Data: Did you open your data silos and offer data to all ?
• Microservice: Did you leverage innovation by...
Are You Ready?
• Conversation: Could a client engage easily a digital conversation or share
something about your company p...
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Digital Revolutions and Business Disruptions

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Digital Revolutions and Business Disruptions

  1. 1. Digital Revolutions and Business Disruptions William El Kaim Oct 2016 - V 2.3
  2. 2. This Presentation is part of the Enterprise Architecture Digital Codex http://www.eacodex.com/Copyright © William El Kaim 2016 2
  3. 3. Plan The Third Industrial Revolution • The Entrepreneurial Age • Digital Revolution and Disruption • Competing In The Digital Age • The Networked Brand • Are You Ready? Copyright © William El Kaim 2016 3
  4. 4. The 3rd Industrial Revolution Jeremy Rifkin • We’re in the first stage of a paradigm shift that is reshaping not only the economy, but also society at large, and even how we think and perceive our world. • The great economic and social revolutions in history occur when two things happen • The emergence of a new energy regime that opens the path to a more complex civilization • The new energy flows can bring more people together, integrate bigger commercial and social units, etc. • To emerge successfully, this new paradigm requires a communication revolution powerful enough to manage the new energy regime. Copyright © William El Kaim 2016 4
  5. 5. The First And Second Industrial Revolutions Scaled Top-down • First Industrial Revolution driven by coal and steam power • When: 19th Century • Energy: Coal and steam power • Communication: Print technology became very cheap when steam power into printing was introduced. That decreased the cost and increased the speed, efficiency and availability of print material. At the same time public schools in EU and USA were established. • Second Industrial Revolution driven by Electricity • When: 20th Century • Energy: centralized electricity, elite energies (coal, oil, gas, tar sands) that are only found in a few places and require significant military and geopolitical investments and massive finance capital, and that have to scale top down because they are so expensive. • Communication: mass communication (broadcast – Top to all), telephone and then later radio and television Copyright © William El Kaim 2016 5
  6. 6. The Third Industrial Revolution Favors Lateral Power • 3rd = Internet for communication and renewable energy • When: Now - When millions of small players come together in vast networks to pool / share their content, risks and their resources. • Energy: Transition to distributed renewable energy sources found in in every inch of the world: the sun, the wind, the geothermal heat under the ground, biomass (garbage, agricultural and forest waste) small hydro, ocean tides and waves. • Communication: The Internet has been a very powerful communication tool in the last 20 years. What’s so interesting about it is the way it scales. The Internet, by contrast, is a distributed and collaborative communication medium and scales laterally. • Disruption comes from lateral power • Electricity 2.0: everybody will become a producer, smart grids • Travel 2.0: social, local, mobile in dynamic networks (ecosystem) Copyright © William El Kaim 2016 6
  7. 7. If We Had To Summarize Each Revolution By A Movie Copyright © William El Kaim 2016 7
  8. 8. The third revolution … Copyright © William El Kaim 2016 8
  9. 9. Plan • The Third Industrial Revolution The Entrepreneurial Age • Digital Revolution and Disruption • Competing In The Digital Age • The Networked Brand • Are You Ready? Copyright © William El Kaim 2016 9
  10. 10. Companies Were Designed like Machines … • The average life expectancy of a company in the S&P 500 has dropped precipitously, from 75 years (in 1937) to 15 years in a more recent study. Copyright © William El Kaim 2016 10
  11. 11. Companies Were Designed like Machines … Copyright © William El Kaim 2016 11
  12. 12. Companies Were Designed like Machines … Copyright © William El Kaim 2016 12Source: Bloomberg
  13. 13. Companies Were Designed like Machines … • Companies were built on a corporate model of “knowledge stocks” • Developing a proprietary product breakthrough and then defending that innovative advantage against rival companies for as long as possible. • The issue is now, because of the increasingly global nature of business competition, the value of a major proprietary breakthrough or invention erodes in value much more quickly than in the mid-20th Century. • Companies should create broad networks and finding innovation at “the edge” of their business rather than a proprietary core Source: John Hagel IIICopyright © William El Kaim 2016 13
  14. 14. Red Queen Effect Source: MeedabyteCopyright © William El Kaim 2016 14
  15. 15. Copyright © William El Kaim 2016 15
  16. 16. Welcome to a New World • The transition from new idea to pilot to going well to early market and then scaling the business impacts the organization itself • its structure, its business model, and the skills of the people in it. • Innovation is anything that breaks a constraint vs. strategy which is about the constraints you embrace. • Making a new idea work requires three distinct sets of skills (Tim Kastelle): • Invention phase: creativity and invention to get the new idea to work • Market creation phase: customer development and problem-solving skills to create a market with the early adopters • Scaling business phase: transition to a business model that will scale with mainstream customers • The problem is that many organizations don't staff to the three different sets of skills (see Crossing the Chasm by Geoffrey Moore) Copyright © William El Kaim 2016 16Source: ConversationAgent
  17. 17. Pace of Technology Adoption Copyright © William El Kaim 2016 17
  18. 18. Copyright © William El Kaim 2016 18
  19. 19. Moore's law visualized through the evolution of Lara Croft face in games by Elena SilenokCopyright © William El Kaim 2016 19
  20. 20. The Entrepreneurial Age Where Re-imagination Is Crucial • The Mass customization is accelerated through a rapid adoption pace of technology • 1 million IPOD sold in 2 years at the start … • 1 million of Iphone 5x in … 3 days! • A large portion of 2020 revenues are likely to come from products and services that don’t even exist today • Advances in technology without a change in business model nor traction are mere productivity gains from the multitude’s standpoint, and are commoditized in the blink of an eye, preventing the company from differentiating itself. • The new digital, networked, real-time society forces us to start thinking and acting as an Ecosystem • Ecosystem are developed using platforms to glue services via API and Funds to encourage startups and partners to hook in Copyright © William El Kaim 2016 20
  21. 21. Are You a Digital Barbarian? • Aggregators redefine the interface between traditional actors and customers, putting pressure on their profit margins. • Answer to customers’ desires for greater transparency around prices and product features, and may increasingly become the primary interface. • Innovators use existing technology platforms, but they bring their own innovative sales or customer relationship management approaches. • Companies will then squeeze margins and also take revenues away from traditional actors, reducing their function to simply processing transactions. • Example: banks or Travel Management Company just doing fulfillment • Disruptors seek to redefine the rules of an industry and replace incumbents by providing alternative products and services, often offering a better experience for a targeted customer group. • By freezing out incumbent actors, they take revenues and threaten legacy players economics in market niches, cherry-picking the most attractive customers. Source: Bain & Company Copyright © William El Kaim 2016 21
  22. 22. RE-imagination of Everything • You should not only re-invent your brand and product, you should re-imagine everything (Mary Meeker 2012) • The risk if not doing so? Being victim of innovative disruptions (see Christensen’s video) • Christensen predicts also the end of consulting as we know it today. • This is also the end of the Enterprise Architect, and the tools and process he used! • The Schumpeter creative destruction theory, is maximized in the digital business world • Winner-Take-All Effect + Network effects • First Time User Experience is key (30/50% of dev), no more documentation! Copyright © William El Kaim 2016 22
  23. 23. RE-imagination of Everything • Digital transformation occurs incrementally and from the inside out. • It requires changing an entrenched culture that’s often characterized by apprehension or even fear of the disruption (including new skills and job duties) that may follow from new digital tools. • Learning how to manage that change will consume substantial time and attention for executives. • Reinvention, by contrast, succeeds by taking an outside-in perspective • Starts with customers’ needs and then tests different innovations that could address those priorities. • Of course, the innovation might cannibalize some part of the legacy’s current business, though better the company cannibalizes itself than allow other companies to take the lead. Source: Bain & CompanyCopyright © William El Kaim 2016 23
  24. 24. Digital Disruption Has Enabled New Institutional Options with Distinct Economics Copyright © William El Kaim 2016 24Source: BCG
  25. 25. Each Type of Innovations Has Its Problems! • Neutralization • a product is good enough to achieve parity with the competitive set • time to market to create competition is critical. • Productivity • Certain areas of the business are improved to lower cost and compete • repurposing the resources is a critical aspect of this; many companies resort to layoffs and write-offs, an inefficient, expensive, and highly disruptive method • Differentiation • When an improvement helps achieve competitive separation in the marketplace • Calculated investment of resources based on focus and prioritization; many businesses however stop short, or don't go far enough in any one direction, leaders fail to prioritize • Waste • Any type of innovation that falls short belongs to the waste category. • This is also where we find the innovation that is not tied to economic value. In many organizations, this category is by far the largest. Copyright © William El Kaim 2016 25Source: Geoffrey Moore
  26. 26. Every Business Is a Digital Business From Digitally Disrupted to Digital Disrupter Source: Accenture Technology Vision 2014Copyright © William El Kaim 2016 26
  27. 27. Source: Accenture Technology Vision 2014 Copyright © William El Kaim 2016 27
  28. 28. Technology Operates on Two Axis Making Things And Moving Things Source: Sam Lessin, Facebook Keynote, PhocusWright Conference 2013. Copyright © William El Kaim 2016 28
  29. 29. But Value From Bits Grows Faster Than The Value From Atoms Value from bits (information content) grows faster than the value from atoms (the physical product or human-delivered service) Source: PWCCopyright © William El Kaim 2016 29
  30. 30. Think Long Tail • Popularized by Chris Anderson in an October 2004 Wired magazine article (Amazon.com) • The term gained popularity as a retailing concept describing the niche strategy of selling a large number of unique items in relatively small quantities • Selling small volumes of hard-to-find items to many customers instead of large volumes of a reduced number of popular items. • The total sales of this large number of "non-hit items" is called the Long Tail. • A market with a high freedom of choice will create a certain degree of inequality by favoring the upper 20% of the items ("hits" or "head") against the other 80% ("non-hits" or "long tail"). • This is known as the Pareto principle or 80–20 rule. Copyright © William El Kaim 2016 30
  31. 31. Think Long Tail Fractal Disruption Engine • The Long Tail vision is then applied in every subset of your market, in a fractal and lateral way. • Each small actor is attacking your business in each possible niche and in each market, putting some order in a global chaos In the Long Tail Inventory is abundant; choice is commodity. It’s the customer that’s in short supply. Copyright © William El Kaim 2016 31
  32. 32. From Value Chains to Value Networks • Value Network: value creating system where all involved stakeholders co- produce value. • You will now be judged on your capability to build, engage and empower a network. • Hard to create collective actions: getting a group of people to work towards a common goal. • Do not neglect the inseparable partnership between hierarchy and network. Copyright © William El Kaim 2016 32
  33. 33. From System of Record to System of Engagement Copyright © William El Kaim 2016 33
  34. 34. Successful and Sustainable Enterprises Will Harness the Stream of Digital Innovation Source: On Web Strategy BlogCopyright © William El Kaim 2016 34
  35. 35. Plan • The Third Industrial Revolution • The Entrepreneurial Age Digital Revolution and Disruption • Competing In The Digital Age • The Networked Brand • Are You Ready? Copyright © William El Kaim 2016 35
  36. 36. Digital Revolution and Disruption • The digital revolution will lead to a profound change of the society. New usages, new services, in short new businesses are created at a high pace, with a huge impact. • The fractal and lateral aspect of the digital revolution are helping new entrants to create their offer, to market it to the world and to gain market share and expand globally at an astonishing rate. • That’s why, the digital revolution is very often correlated to innovation. But as the adage said, correlation is not causation. • Kodak, and blockbuster (just to name a few) are examples of incumbents that were not able to cope with the digital revolution and were put out of business. • On the other side, some established companies were able to re-imagine their business, like Apple. And, of course, new entrants did benefit from the digital revolution to become giants, like Amazon, Facebook or Facebook. Copyright © William El Kaim 2016 36
  37. 37. Digital Revolution and Disruption • The environments which are characterized by rapid, systemic and radical change require flexible, dynamic or emergent approaches to strategy formulation (for example: disruptive innovation). • Most of the literature on technological innovation points to established companies as victims of disruptive innovations, a phenomenon sometimes called the “incumbent’s curse”. • On the other hand, some others developed the idea of “dynamic capabilities” which enables established companies to thrive, whatever the circumstances. Copyright © William El Kaim 2016 37
  38. 38. Schumpeter Creative Destruction • The expression "creative destruction" was popularized by Joseph Schumpeter, particularly in his book “Capitalism, Socialism and Democracy”, first published in 1942. • Creative destruction describes the "process of industrial mutation that incessantly revolutionizes the economic structure from within, incessantly destroying the old one, incessantly creating a new one." • In Schumpeter's vision of capitalism, innovative entry by entrepreneurs was the disruptive force that sustained economic growth, even as it destroyed the value of established companies and laborers that enjoyed some degree of monopoly power derived from previous technological, organizational, regulatory, and economic paradigms. • Although Schumpeter explicitly mentioned technology as a driver of Creative Destruction, he also mentioned several other options for entrepreneurs. But after World War II, technology, perceived as the main force behind progress, was going to get most of the attention. • For Schumpeter incumbents were not supposed to last; they were bound to be marginalized by entrepreneurs. Copyright © William El Kaim 2016 38
  39. 39. What is Disruption? Jean-Marie Dru Definition • Jean Marie DRU first coined the term Disruption in 1992 and registered the word as a trademark! • Disruption comes from the Latin word “disrumpere,” which translates in English as “breaking from.” • Disruption refers to everything that is not gradual change. • For him there is two kind of innovations incremental innovation and disruptive innovation. • Incremental, means marginal progress. A formulaic improvement. The extension of a range. Entry into an adjacent market. Incremental innovations obviously feed revenue streams short-term. • In contrast, disruptive innovation brings radical change and generate more top-line growth and more profit than do incremental ones. Source: Jean-Marie DruCopyright © William El Kaim 2016 39
  40. 40. What is Disruption? Incremental vs. Disruptive (Radical) Copyright © William El Kaim 2016 40Source: Microsoft
  41. 41. What is Disruption? Clayton Christensen Definition • Clayton Christensen, a Harvard Business School professor, defined “disruption” in The Innovator’s Dilemma. • A disruptive product addresses a market that previously couldn’t be served (a new-market disruption) or it offers a simpler, cheaper or more convenient alternative to an existing product (a low-end disruption). • An incumbent in the market finds it almost impossible to respond to a disruptive product. In a new-market disruption, the unserved customers are unserved precisely because serving them would be unprofitable given the incumbent’s business model. • In a low-end disruption, the customers lost typically are unprofitable for the incumbents, so the big companies are happy to lose them. Thus, the innovator’s dilemma. Incumbents appropriately ignore the new product because it is uneconomic to respond, but the incumbents’ quiescence can lead to their later downfall. Copyright © William El Kaim 2016 41
  42. 42. What is Disruption? Christensen Definition Copyright © William El Kaim 2016 42
  43. 43. Disruption and S-curves « We’re living in a world where people can become businesses in 60 seconds » B. Chesky (AirBnB) Copyright © William El Kaim 2016 43
  44. 44. Evolution vs. Revolution Source: Mastering 2020 - Rolland Berger Consulting Example: iPhone Example: TV moving to LED technologie Disruption Copyright © William El Kaim 2016 44
  45. 45. Example: Disruption in Travel Industry 1 2 3 1 2 3 Copyright © William El Kaim 2016 45
  46. 46. https://holvi.com/ Example: A Bank Without being a bank! Copyright © William El Kaim 2016 46
  47. 47. Example: Number26 A New Online Bank https://number26.de/en/Copyright © William El Kaim 2016 47
  48. 48. Example: Number26 A New Online Bank Copyright © William El Kaim 2016 48
  49. 49. https://www.hioscar.com/ Example: New Insurance, free service Copyright © William El Kaim 2016 49
  50. 50. Innovate in Business Models • Definitions of “business model” vary, but most people would agree that it describes how a company creates and captures value. • The features of the model define the customer value proposition and the pricing mechanism, indicate how the company will organize itself and whom it will partner with to produce value, and specify how it will structure its supply chain. • Basically, a business model is a system whose various features interact, often in complex ways, to determine the company’s success. • In any given industry, a dominant business model tends to emerge over time. • In the absence of market distortions, the model will reflect the most efficient way to allocate and organize resources. • Most attempts to introduce a new model fail but occasionally one succeeds in overturning the dominant model, usually by leveraging a new technology. • If new entrants use the model to displace incumbents, or if competitors adopt it, then the industry has been transformed. Copyright © William El Kaim 2016 50Source: HBR
  51. 51. Innovate in Business Models The Six Keys to Success • 1. A more personalized product or service. • Many new models offer products or services that are better tailored than the dominant models to customers’ individual and immediate needs. Companies often leverage technology to achieve this at competitive prices. • 2. A closed-loop process. • Many models replace a linear consumption process (in which products are made, used, and then disposed of) with a closed loop, in which used products are recycled. This shift reduces overall resource costs. • 3. Asset sharing. • Some innovations succeed because they enable the sharing of costly assets • The sharing typically happens by means of two-sided online marketplaces that unlock value for both sides. • Sharing also reduces entry barriers to many industries, because an entrant need not own the assets in question; it can merely act as an intermediary. Copyright © William El Kaim 2016 51Source: HBR
  52. 52. Innovate in Business Models The Six Keys to Success • 4. Usage-based pricing. • Some models charge customers when they use the product or service, rather than requiring them to buy something outright. The customers benefit because they incur costs only as offerings generate value; the company benefits because the number of customers is likely to grow. • 5. A more collaborative ecosystem. • Some innovations are successful because a new technology improves collaboration with supply chain partners and helps allocate business risks more appropriately, making cost reductions possible. • 6. An agile and adaptive organization. • Innovators sometimes use technology to move away from traditional hierarchical models of decision making in order to make decisions that better reflect market needs and allow real-time adaptation to changes in those needs. The result is often greater value for the customer at less cost to the company. Copyright © William El Kaim 2016 52Source: HBR
  53. 53. Innovate in Business Models The Six Keys to Success Copyright © William El Kaim 2016 53 In theory, the more of the six features a new business model has, the greater its potential to transform a given industry should be.
  54. 54. Innovate in Business Models Business Model Canvas to Help? Copyright © William El Kaim 2016 54Source: Strategyzer
  55. 55. Innovate in Business Models • From inside-out to outside-in • Always be open to external ideas • Personalized offers in a mass market world … • It’s the age of the platform, use API to sell through (target developers) • Become a payment operator and offer a digital wallet • Invest in digital marketing and advertising • Target business niches and become the leader first and fast • Be innovative in business models (niche) • Bundle-unbundle your service offer (“a la carte”) Excerpted from Big Bang Disruption: Strategy in the Age of Devastating Innovation by Larry Downes and Paul Nunes Copyright © William El Kaim 2016 55
  56. 56. The RISE of Unicorns • “The Unicorns”, the billion-dollar tech startup was supposed to be the stuff of myth said Forbes. Now they seem to be … everywhere. • AirBnb, GrabTaxi, SpaceX, Lyft, Uber, to name a few, are already conquering the world. • Used to take 20 years for traditional fortune 500 company to reach $1B Valuation Copyright © William El Kaim 2016 56
  57. 57. More on Disruption • Clayton Christensen • Talk given at the Gartner Symposium ITExpo 2011 on October 2011 • How Pursuit of Profits Kills Innovation and the U.S. Economy • The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail • The Innovator’s DNA: Mastering the Five Skills of Disruptive Innovators • Consulting on the Cusp of Disruption - Harvard Business Review • Opponents to Christensen vision • “The disruption Machine”, Jill Lepore in the New Yorker • “A Counterargument To Clayton Christensen's Definition Of True Disruption”, JM Dru • “What Clayton Christensen got wrong”, Stratechery • “What Killed Michael Porter's Monitor Group? The One Force That Really Matters” by Steve Denning on Forbes Copyright © William El Kaim 2016 57
  58. 58. Plan • The Third Industrial Revolution • The Entrepreneurial Age • Digital Revolution and Disruption Competing In The Digital Age • The Networked Brand • Are You Ready? Copyright © William El Kaim 2016 58
  59. 59. Competing In The Digital Age Seven Forces At Work • New Pressure On Prices And Margins • Competitors Emerge From Unexpected Places • Winner-takes-all Dynamics • Plug-and-play Business Models • Growing Talent Mismatches • Converging Global Supply And Demand • Relentlessly Evolving Business Models At Higher Velocity Source: McKinsey Strategic Principles for competing in the digital ageCopyright © William El Kaim 2016 59
  60. 60. Competing In The Digital Age Seven Forces at Work • New Pressure On Prices And Margins • Digital technologies create near-perfect transparency, making it easy to compare prices, service levels, and product performance: consumers can switch among digital retailers, brands, and services with just a few clicks or finger swipes. • This dynamic can commoditize products and services as consumers demand comparable features and simple interactions. • Third parties have jumped into this fray, disintermediating relationships between companies and their customers. • Competitors Emerge From Unexpected Places • Digital dynamics often undermine barriers to entry and long-standing sources of product differentiation. • At the same time, the expense of building brands online and the degree of consumer attention focused on a relatively small number of brands are redrawing battle lines in many markets. • New competitors can often be smaller companies that will never reach scale but still do a lot of damage to incumbents. Source: McKinseyCopyright © William El Kaim 2016 60
  61. 61. Competing In The Digital Age Seven Forces at Work • Winner-takes-all Dynamics • Digital businesses reduce transaction and labor costs, increase returns to scale from aggregated data, and enjoy increases in the quality of digital talent and intellectual property as network effects kick in. • Scale economies in data and talent often are decisive. Successful start-ups known for digital expertise and engineer-friendly cultures become magnets for the best digital talent, creating a virtuous cycle. • These effects will accelerate consolidation in the industries where digital scale weighs most heavily, challenging more capital- and labor-intensive models. • Relentlessly Evolving Business Models At Higher Velocity • Digitization isn’t a one-stop journey. • Combinations of innovations and new usages will lead to new consumption habits … and new business models Source: McKinseyCopyright © William El Kaim 2016 61
  62. 62. Competing In The Digital Age Seven Forces at Work • Plug-and-play Business Models • As digital forces reduce transaction costs, value chains disaggregate. • Third-party products and services can be quickly integrated into the gaps • In the travel industry, new portals are assembling entire trips: flights, hotels, and car rentals. The stand-alone offerings of third parties, sometimes from small companies or even individuals, plug into such portals. These packages are put together in real time, with dynamic pricing that depends on supply and demand. As more niche providers gain access to the new platforms, competition is intensifying. • Converging Global Supply And Demand • Digital technologies know no borders, and the customer’s demand for a unified experience is raising pressure on global companies to standardize offerings. • In B2B markets from banking to telecommunications, corporate purchasers are raising pressure on their suppliers to offer services that are standardized across borders, integrate with other offerings, and can be plugged into the purchasing companies’ global business processes easily. Source: McKinseyCopyright © William El Kaim 2016 62
  63. 63. Competing In The Digital Age Seven Forces at Work • Growing Talent Mismatches • Software replaces labor in digital businesses. • Computers increasingly are performing complex tasks as well. “Brilliant machines,” like IBM’s Watson, are poised to take on the work of many call-center workers. • Digitization will encroach on a growing number of knowledge roles within companies as they automate many frontline and middle-management jobs based upon synthesizing information for C-level executives. • At the same time, companies are struggling to find the right talent in areas that can’t be automated. • Digital skills like those of artificial-intelligence programmers or data scientists and of people who lead digital strategies and think creatively about new business designs. • A key challenge will be to reallocate the savings from automation to the talent needed to forge digital businesses. Source: McKinseyCopyright © William El Kaim 2016 63
  64. 64. Competing In The Digital Age Four Principles For The Open World (Don Tapscott) • The new open connected world will be governed by four principles • Collaboration • Transparency • Sharing • Empowerment • Social is more than Facebook and Twitter, and will lead to collective intelligence. Look at the birds, how collectivity they behave and evolve. • Video (a must see) Copyright © William El Kaim 2016 64
  65. 65. Competing In The Digital Age Adopting a New Digital Operating Model • Today’s fastest growing, most profoundly impactful companies are using a completely different operating model • Technology – software in particular – has had a destabilizing effect on traditional business models. • The proliferation of personal computing power has leveled the playing field in almost every industry. • As products and the means to create them have become digitized (often referred to as software eating the world), production capability has grown more accessible and portable. And the acceleration of that trend (driven by Moore’s Law) means that every single day it gets easier for someone else to compete with your product or service, and to do it better, faster, and cheaper. • It used to be that the best day to start your business was yesterday. • Now, tomorrow is almost always a more advantageous starting point. Source: Aaron Dignan Medium blog Post Copyright © William El Kaim 2016 65
  66. 66. Competing In The Digital Age Company as Lean, Mean, Learning Machines • Intense bias to action and a tolerance for risk, expressed through frequent experimentation and relentless product iteration. • Hack together products and services, test them, and improve them, while their legacy competition edits PowerPoint. • Obsessed with company culture and top tier talent, with an emphasis on employees that can imagine, build, and test their own ideas. • They are maniacally focused on customers. • They are hypersensitive to friction – in their daily operations and their user experience. • They are open, connected, and build with and for their community of users and co-conspirators. • They are comfortable with the unknown – business models and customer value are revealed over time. • They are driven by a purpose greater than profit! Source: Aaron DignanCopyright © William El Kaim 2016 66
  67. 67. Adopting a New Digital Operating Model Company as Lean, Mean, Learning Machines • The physical world that we used to value so much (the devices, cars, real estate, and other infrastructure) are merely inventory for something bigger. • The value, is in the data, the tools, and the optimization of markets. • These organizations may start small • like Medium, Hipchat, Circa, Outbox,and Quirky • But they can get bigger fast (Growth and Scale are key) • like Airbnb, Dropbox, Evernote,Uber, Tesla, Square, and Jawbone • And ultimately dominate markets • Like Amazon, Google, Twitter, Facebook, and Paypal). Source: Aaron DignanCopyright © William El Kaim 2016 67
  68. 68. Adopting a New Digital Operating Model Source: Aaron DignanCopyright © William El Kaim 2016 68
  69. 69. Adopting a New Digital Operating Model Purpose: Why Are We Doing This? • Digital World: Companies are often extremely upfront with investors about their Purpose-driven nature (see shareholder letters from Zuckerberg or Bezos) and even structured to protect founder control. • This is not to say these firms don’t value scale, influence, or profitability. They aspire greatly in these areas, but only in service of their vision. • The Shift • Rom growth as A commercial agenda to growth as A visionary agenda! • Example • Google’s purpose is to organize the world’s information and make it universally accessible and useful Source: Aaron DignanCopyright © William El Kaim 2016 69
  70. 70. Adopting a New Digital Operating Model Process: How Will We Do This? • While an organization’s processes are initially developed to ensure results and quality, they can easily become inhibitive. • Digital world: Processes that are adopted tend to be focused on experimentation, autonomy, and speed. • Agile, lean, and user-focused dominate the process conversation. • From Holacracy to Lean Startup Method, these processes are not about control or risk: they're about getting better every day. • The Shift • From Process As Quality Assurance To Process As Iterative Improvement! • Example • Quirky’s transparent and rapid r&d process vets products with consumers at every stage. Source: Aaron DignanCopyright © William El Kaim 2016 70
  71. 71. Adopting a New Digital Operating Model People: Who Will Do This? • Value great people. Some call them “A Players.” Others call them “stunning colleagues.” • Legacy HR models tend to value “managers”. • Digital world: the emphasis on People is all about making. • “Makers” are people who have skills (as opposed to credentials). They think by doing: experimenting, testing, and learning. • Make decisions about their priorities and workflow, what’s left for the manager is skills development, knowledge sharing, and helping with roadblocks – the Montessori method gone corporate • The Shift • From people as managers of competitive advantage to people as makers of competitive advantage! • Example • Valve hires people that love making games and lets them choose the roles they fill and the work they do Source: Aaron DignanCopyright © William El Kaim 2016 71
  72. 72. Adopting a New Digital Operating Model People: Who Will Do This? • The importance of passion and capability to act. • Previous “passion” definition is outdated • Somebody who will follow instructions passionately [and] work nights, work weekends, to get the job done. • Passion is now “a questing disposition” • Enthusiasm for pushing the work effort to new experiences and new frontiers, through activities such as attending conferences, meeting players from outside the company for lunch or getting involved in social media. Source: Aaron DignanCopyright © William El Kaim 2016 72
  73. 73. Adopting a New Digital Operating Model Product: What Are We Doing? • Product is anything that an organization offers its customers and users, inclusive of services. • The act of developing products and services used to be limited to a privileged few • Digital World: the product portfolio is a result of constant experimentation, creating MVPs (minimum viable products) that can hit the market and begin soliciting feedback. • Make small mistakes early and often, and only scale when the fit between product and market is sound. • The Shift • From product built to last to product built to evolve! • Example • Dropbox started with a four minute video of a service that didn’t even exist yet Source: Aaron DignanCopyright © William El Kaim 2016 73
  74. 74. Adopting a New Digital Operating Model Platform: Build The Minimum Enterprise Viable Platform • Ecosystems are dynamic and co-evolving communities of diverse actors who creates and capture New Value through both Collaboration and Competition • A “platform” is a powerful type of ecosystem that could not be bought off- the-shelves! • Need to design and implement one for your business: • Build from scratch: follow the blue ocean approach • Leverage & Extend: by reusing and orchestrating the core business services already existing, but no more adapted to new usages and demands. • And organize the ecosystem around … Copyright © William El Kaim 2016 74
  75. 75. Adopting a New Digital Operating Model Platform: To Be Built With IT Source: CapgeminiCopyright © William El Kaim 2016 75
  76. 76. Adopting a New Digital Operating Model Source: PWCCopyright © William El Kaim 2016 76
  77. 77. Plan • The Third Industrial Revolution • The Entrepreneurial Age • Digital Revolution and Disruption • Competing In The Digital Age The Networked Brand • Are You Ready? Copyright © William El Kaim 2016 77
  78. 78. A New Consumer Reality Is Emerging • Defined by an any-where/anytime/any device expectation of accessibility and engagement. • Consumers have the ability to be online all the time and expect persistent digital engagement with whomever they conduct business. • Companies will need to develop fluency in digital product development and social technologies, and they will need to create collaboration across groups that have often worked separately from one another. • Enterprises must reorganize in a manner that puts customers at the center of the digital operating model, instead of thinking of them only as end-of-the-chain recipients of delivered value. Copyright © William El Kaim 2016 78
  79. 79. The Networked Brand Blast Radius Vision • Branding is dead and replaced by Networked brand • Need to create powerful bond between company and travelers and create a Halo effect to protect your product from commoditization • Loyalty is when you lock-in customers in powerful ecosystem (Nike, Apple, Starbuck) • Five Key elements for networked brand 1. Principled: establish their engagement at the value level (belief). Marketing is about value, creating powerful emotional bonds. 2. Pioneering/experimental – Nike Golf App, Starbuck App 3. Purposeful – content with leg, not dying after 30s. Google Maps 4. Opportunistic – Smart brand, all about data and targeting, and to be in the conversation, in the air 5. Meticulous – never stop engaging and listening, care of everything Source: Blast Radius Keynote about Networked Brand in PocusWright Conference 2012 Copyright © William El Kaim 2016 79
  80. 80. Focus On User Values & Touchpoints Source: Microsoft 2013Copyright © William El Kaim 2016 80
  81. 81. Focus On User Values & Touchpoints • By 2020 the customer will manage 85% of the relationship with an enterprise without interaction with a human Source: Microsoft 2013Copyright © William El Kaim 2016 81
  82. 82. What Is To Be Done? • Fix the Basic First! • Companies are often aware of the problems but are not committed to solve them • Look for blind spots in the customer experience! • Become your own mystery chopper (eat your own dog food) • Treat your customers like tourists in a new digital country • Use simple words, and reduce their stress to the maximum by hiding the complexity of your processes • Consider each customer as a segment, personalize any conversations with them • Requires every part of your organization to be aligned and engaged • Inside and Outside at the same time Source: Get ready for marketing 2020, Steven Van Belleghen Copyright © William El Kaim 2016 82
  83. 83. What Is To Be Done? Source: Steven Van BelleghenCopyright © William El Kaim 2016 83
  84. 84. What Is To Be Done? Moving Away from the historical sales funnel… Source: The Robert Report, The Trouble With Travel Distribution Robert Carey Associate Principal McKinsey & Company Towards a Customer Decision Journey Lens Copyright © William El Kaim 2016 84
  85. 85. Purpose is like Shared Value It helps creating Bonds … From annual Plan to 3 months marketing project plan Ambition is the pass to success, Execution is the vehicle to succeed What Is To Be Done? Selling Without Selling! Source: Steven Van BelleghenCopyright © William El Kaim 2016 85
  86. 86. What Is To Be Done? Fully Integrated Brand Retailing • Multichannel retailing is most often associated with retailers that have brick- and-mortar stores combined with an online retail channel. • A new concept has emerged, called omni-channel: a channel-agnostic view of how consumers experience the retailer brand. • Shoppers increasingly demand a consistent level of experience regardless of channel or mode by which the retail is accessed. • Such shoppers avoid retailers who are ill-equipped to deliver a seamless brand experience online, in-store and across multichannel media, both consistently and continuously. • By 2020, the need for a unified consumer omni-channel experience will be complicated by the need for nearly perfect execution. Copyright © William El Kaim 2016 86
  87. 87. What Is To Be Done? Key Ecosystems Are Expanding Across More Screens It’s no longer just about smartphones Source: MobileVisionCopyright © William El Kaim 2016 87
  88. 88. What Is To Be Done? Omni-Channel is the New Normal! With the convergence of physical retail formats, digital services, and eCommerce channels, retailers are currently confronted with the need to correctly deliver a fully integrated shopper experience from start to finish. Copyright © William El Kaim 2016 88
  89. 89. What Is To Be Done? Anticipating Competitive Experiences • Consumers are driven more by the experiences that companies create than the individual features that products offer. • Offerings that connect on an emotional level, • Frequently substitute experiences across category • As consumers reframe choice, this reframes competition. • Understanding how customers might trade other experiences for your own gives you a better handle on your actual competition Copyright © William El Kaim 2016 89
  90. 90. What Is To Be Done? Upstream Activities Are Being Commoditized • Upstream activities (such as sourcing, production, and logistics) are being commoditized or outsourced • The traditional upstream view is that as rival companies catch up, competitive advantage erodes. • Companies are still organized around their production and their products, success is measured in terms of units moved, and organizational hopes are pinned on product pipelines. • Production-related activities are honed to maximize throughput, and managers who worship efficiency are promoted. • Businesses know what it takes to make and move stuff. The problem is, so does everybody else. Source: Niraj DawarCopyright © William El Kaim 2016 90
  91. 91. What Is To Be Done? Investing in Downstream Activities To Enable Value Creation • Downstream activities aimed at reducing customers’ costs and risks are emerging as the drivers of value creation and sources of competitive advantage • Advantage grows over time or with the number of customers served—in other words, it is accumulative. • Network effects constitute a classic downstream competitive advantage • They reside in the marketplace, • they are distributed (you can’t point to them, paint them, or lock them up), and • they are hard to replicate. Brands, too, carry network effects. • Customers and the market (not the factory or the product) now stand at the core of the business. • The more data amassed, the further it improves the accuracy of predictions and the increased advantage relative to competitors. Copyright © William El Kaim 2016 91Source: Niraj Dawar
  92. 92. What Is To Be Done? Shifting Source Of Competitive Advantage Often neglected Costly and time consuming Growth Hacking techniques could help Copyright © William El Kaim 2016 92Source: Niraj Dawar
  93. 93. What Is To Be Done? Using Design Thinking Copyright © William El Kaim 2016 93
  94. 94. What Is To Be Done? Marketing to win each moment! • The shift to constant connectivity is one that’s transforming how companies connect with people, providing access to so many more consumer moments than ever before, and powerful ways to be relevant and welcome at each one. The possibilities are incredible and the opportunity is huge – and the time is now. • Customers have become increasingly connected and informed, no longer relying as much on traditional sources such as Google or websites • Now when they begin a discovery process or look to make an informed decision, they are using networks, friends and apps for help or direction. • It’s the shared experiences that define what they do next. • These moments will become critical to businesses. Copyright © William El Kaim 2016 94
  95. 95. Copyright © William El Kaim 2016 95
  96. 96. What Is To Be Done? Marketing to win each moment! • Technology leaves consumers trying to choose between a dizzying array of platforms, networks and apps designed to make their life easier! • Connected consumers make decisions outside of the sales funnel that companies have organized themselves around • 90%of multiple device owners switch between screens to complete tasks • As a business, you have to look at the people who are sharing their experiences about your business, product or service and why you should intentionally design those experiences. • Concept of shareable experience design offers a simplified model for truly effective consumer engagement that is at the heart of any future success for a company. Source: Brian SolisCopyright © William El Kaim 2016 96
  97. 97. What Is To Be Done? Zero Moment Of Truth • 1. Zero Moment of Truth (ZMOT) • When the consumer is starting to explore choices and is just becoming aware of needs and possible solutions • Introduced by Google, it’s what people search and find after encountering the stimulus that directs their next steps. • 2. First Moment of Truth (FMOT) • When the consumer is ready to buy. • Consumer packaged goods companies have perfected providing the right experience at this point. • Introduced by P&G, it’s what people think when they see your product and it’s the impressions they form when they read the words describing your product. Source: Jim Lecinski • 3. Second Moment of Truth (SMOT) • Happens after the consumer purchases, and includes support and other after-purchase experiences. • It’s what people feel, think, see, hear, touch, smell, and (sometimes) taste as they experience your product over time. It’s also how your company supports them in their efforts throughout the relationship. Copyright © William El Kaim 2016 97
  98. 98. What Is To Be Done? Ultimate Moment of Truth (UMOT) • Brian Solis added a Fourth one: The Ultimate Moment of Truth (UMOT) • What the consumer shares after purchasing, fueling other consumers’ journeys. • A stage that Solis introduces that brings to light the importance of shared experiences and why organizations must first design them rather than just react. • It’s that shared moment at every step of the experience that becomes the next person’s Zero Moment of Truth (ZMOT). Copyright © William El Kaim 2016 98
  99. 99. Digital Darwinism Source: AltimeterCopyright © William El Kaim 2016 99
  100. 100. Plan • The Third Industrial Revolution • The Entrepreneurial Age • Digital Revolution and Disruption • Competing In The Digital Age • The Networked Brand Are You Ready? Copyright © William El Kaim 2016 100
  101. 101. Source: TheFamily Copyright © William El Kaim 2016 101
  102. 102. Six Steps of Digital Transformation Copyright © William El Kaim 2016 102
  103. 103. Plateau of Productivity Slope of enlightenment Peak of Inflated Expectation Innovation Trigger Trough of Disillusionment Maturity Visibility Source: Extended from Gartner Hype Cycle and Philippe MÉDA (Merkapt) $$$ Blind Leaders Impeding Challengers Opportunistic Leaders Rambling Patent, Algorithm Lots of small tests, learning by doing Building Co-creation, Design Thinking, API, MVP, platforms, business models research tax credit, VCs, Innovation budget Selling Selling, marketing, pricing, advertising, ecosystems Commercial Deployment Right Market Right Product Right Time Right Business Model Copyright © William El Kaim 2016 103
  104. 104. Are You Ready? • Data: Did you open your data silos and offer data to all ? • Microservice: Did you leverage innovation by testing often and building microservices based prototypes validated with clients? • Platform: Did you adopt a fully digital approach to creating the experience and the platform first instead of focusing on a product ? • Mobile: Could a customer buy any of your company product or services using one finger in less than 15s? • Big data: Are the data concerning your products and your customers big enough to not be managed in excel? • Infrastructure: Did you treat infrastructure as code and leverage continuous development and deployment (devops)? Copyright © William El Kaim 2016 104
  105. 105. Are You Ready? • Conversation: Could a client engage easily a digital conversation or share something about your company product/services at any time in different ways? • Customer service: Are you offering and end to end service and be able to track the whole steps of your customer digital journeys? • Brand reputation: Do you monitor in real time your brand reputation and do you nurture brand advocates? • Agile: Are your ready to build and market a product/service in weeks and kill it after two or three years? Copyright © William El Kaim 2016 105
  106. 106. Twitter http://www.twitter.com/welkaim SlideShare http://www.slideshare.net/welkaim EA Digital Codex http://www.eacodex.com/ Linkedin http://fr.linkedin.com/in/williamelkaim Claudine O'Sullivan Copyright © William El Kaim 2016 106

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