digital transformation vkw (1)
TRANSCRIPT
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Connected (internet)
Social
Digital
Analogue
Mobile
The Speed of Change…Exponential….
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My first Internet memories…
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We are in Digital Kindergarten :-)
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Digital is becoming Business Critical
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Friendsurance: “online peer 2 peer insurance”
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Average Company Lifespan on S&P 500 Index
1960 1970 1980 1990 2000 2010 2020
60
50
40
30
20
10
0
70
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Waves of Digital Disruption
1995+ Music Photography Video Rental …
2010+ Print Media TV Travel HR …
2015+ Banking Healthcare Automotive Retail Education Telco …
2020+ All Safe havens will be subject to digital disruption …
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If the canary dies, it's time to run!
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No one is too big to fail …
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When your company is a fat cow, you are probably most vulnerable to disruption.
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@jcaudron@jcaudron
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who is your…
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Do you have a future 2020 vision on how digital is transforming your business and how you need
to act upon that?
Digital Transformation
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Behavior is shifting fast
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Working for different generations
Classic Generation Converted Generation Digital Generation Rupture Generation• A (mentally) older generation
that will not go digital soon.
• They are no longer open to changes brought by digital.
• The traditional business model will need to be kept as long as possible to service these clients.
• A traditional generation, which is slowly getting involved with digital and embracing it.
• They expect the digital services to be a translation of the traditional services.
• A generation that still knows the old business models and logic, but that is already adopting a new behaviour and new business models and services.
• This is a generation of active young adults and young families with kids.
• This generation is raised with new concepts. They know a broad variety of business models that all do things differently.
• This is a generation of digital natives, the children that grow up with tablets, apps and everything on-demand.
They make you stretch the traditional business as long as possible
Most of the digital investments today are focused here, but this is mainly fixing the basics
They are the first adopters of entirely new business models (cfr. Netflix, Uber, …). Invest in this too
The real future
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Classicbusiness
Digital business
Newbusiness
Classic generation x
Converted generation x x
Digital generation x x
Rupture generation x
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Digital First > Digital Only
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Technology is changing by the speed of light.
Behavior is changing by the
speed of light.
What about companies?
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1. Bring your chips to the table
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Digital Transformation Modeling
From ... ... to
The Business
Digital (at the sideline)
Digital in the core
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http://techcrunch.com/2015/04/18/you-dont-need-a-digital-strategy-you-need-a-digitally-transformed-company/
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TV
Rad
io
Prin
t
Billb
oard
s
DM
Dig
ital M
edia
Sale
s
Mar
ketin
g &
Com
mun
icat
ion
Serv
ice
& S
uppo
rt
HR IT
PR &
Ext
erna
l Com
mun
.
R&
D &
Ent
erpr
ise
2.0
Digital Transformation
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2. Create your future vision
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The Glass House
The Package
The Frog
The GatekeeperThe Traveller
The Participant
The Cyborg
THE WHEEL OF CHANGE
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The Glass House
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
De relatie verandert…
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Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House Accountability
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Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House Authentic production
urbanara.co.uk
instagram.com/jardanfurniture/
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Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House Humanization
https://www.facebook.com/video.php?v=10155097324755537
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Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House Humanization
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Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House Responsiveness
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Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package
Het product verandert…
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Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package
“verticals”
Monolithic vs. atomic
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Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package Monolithic vs. atomic
minibardelivery.com
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Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package New subscription models
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Subscription packages
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package
hellofresh.be/boxen/
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Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package Subscription packages with additional services
surveymonkey.com
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Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package Personalize the product
store.nike.com/us/en_us/product/roshe-run-flyknit-id/
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Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package Personalizing the product or service
suitcase.be/en
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Retail becomes more about services than just products
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package
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The Frog
Bypassing
Virtualization
Fragmentation of touchpoints
De positie in de waardeketen verandert…
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The Frog
Bypassing
Virtualization
Fragmentation of touchpoints
Project Loon by Google
Who will provide us with Internet?
Facebook with Drones or SpaceX (through a $1B Google investment) with satellites?
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Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Bypassing
If you can sell expensive cars online, you can sell anything online.
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Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Brands by-passing retail
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The Frog
Bypassing
Virtualization
Fragmentation of touchpoints
Bypassing
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Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Shop in shop
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New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper
Opiniemakers veranderen…
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New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper New gatekeepers
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New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper Voor en door (toekomstige) ouders
dreambaby.be/ecom/nl/prod/Dreambaby/DB-PAGE-dreambaby2-voordelen-nl
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New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper Voor en door moeders
familieweekmenu.nl
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New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper Voor en door assistants
assistantplus.com
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Internally... Employees
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Externally... People who are involved…
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
De digitale omgang met onze fysieke locatie
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
We#have#entered#!THE!POST!PC!ERA#Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
The first hand-held mobile phone was
demonstrated by Dr Martin Cooper of
Motorola in 1973, using a
handset weighing 2 kg.
Source: Wikipedia
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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In 1983, the DynaTAC 8000x was the first to
be commercially available.
Source: Wikipedia
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
© In
Site
s C
onsu
lting
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
!!
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller 70% hands over iPad to kids It’s becoming the modern Nanny PBS study http://insit.es/lv6TdH
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
Brand&u(lity&is&&the&key&to&unlock&&
the&power&of&mobile.&Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
https://www.youtube.com/watch?v=TrTFld2M7Wg
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The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
https://www.youtube.com/watch?v=BgXrTGIiFV8
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New way of workingThe Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
showpad.com
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The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
De relatie tussen mensen verandert…
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The Participant
solo.be
A recipe community
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
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The Participant
ideas.lego.com
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
Collaboration, with added value
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mystarbucksidea.force.com
200.000 ideas / 250 implementedThe Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
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The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
airbnb.com
The local sharing economy
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The ParticipantLending Club uses technology to operate a credit marketplace at a lower cost than traditional bank loan programs, passing the savings on to borrowers in the form of lower rates and to investors in the form of solid returns.
lendingclub.com
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
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Sharing food…
thuisafgehaald.be
The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
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This is not a community.
Company
Community member
Community member
Community member
Community member
Community member
Community member
The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
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Members need to build relationships
Company
Community member
Community member
Community member
Community member
Community member
Community member
The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
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Nieuwe technologieën…
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
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The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
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The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
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WearablesThe Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
techcrunch.com/2015/03/11/amazons-apple-watch-app-will-let-you-shop-from-your-wrist/
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The Cyborg
https://www.youtube.com/watch?v=WgpUIDyeE6g
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
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The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Internet of Things
retaildetail.be/nl/belgie/food/item/21432-carrefour-lanceert-connected-kitchen-in-belgie
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The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Wearables
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The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
3D printing keeps evolving
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The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
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https://www.youtube.com/watch?v=M8YjvHYbZ9w
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TransparencyAccountability
ProximityResponsivenessBi-directionalHumanizationAuthenticity
The Glass House
Relationship
Monolithic vs. atomic
APPificationLong Tail
PersonalizedExperience
SpeedPrice
(Self-)serviceScalability
The Package
Product, Service & Packaging
BypassingVirtualization
Fragmentation of touchpoints
The Frog
Position in the value
chain
New gatekeepersRecommendations
"Good is good enough"
Ambassadorship
The Gatekeeper
Opinion making
The Traveller
PlaceUtility
Empowered selfDelivery fulfillment
New way of working
Contextual awarenessReal-time
Location & Place
The Participant
CommunityGamificationCollaboration
The power of the crowd
Community
The Cyborg
Internet of thingsWearables
Quantified selfRobotics
DataMonitoring
Progressive Technology
We have to prepare for a digital future, with new rules and new relationships
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3. Start solving problems, forget ideas
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We are not looking for Great Ideas
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We are looking for Great Problems (that need solving)
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Great Problems are rooted in strong emotions
caring, comfort, convenience,security, curiosity, greed, love, ego, laziness, belonging, …
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The Problem Transformation Canvas
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"Name"
PROBLEM/NEED
EMOTIONS
SOLUTIONFUNCTIONS
CHANGE CURRENCY (benefits)
TARGET GROUPS
What problem are we solving and for who?
What are the basic emotions that problem and solution are addressing?
What is the overall solution that would fix this problem?
What are the benefits and are they strong enough to have people change their
preference?
What are the different functions a customer would expect this
solution to have?
Whom are you addressing with this product or
service?
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4. Go for Garage Innovation
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The Factory: Politics, Legacy, Keeping the lights on,…
4. Organisation Model
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The Factory The Guesthouse The Garage
Incremental innovation• Development of ‘need to have’
digitals projects and technology
• Working on the existing foundation of the company
• Follows general procedures and regulations
• Slow
Change projects• Small and dedicated project-teams, focused
on in-house innovation
• Limited independency: they are an (internal) supplier of the factory
• Focus on strategically important new-style projects or add-ons that will be rolled-out within the existing company architecture
Breakthrough innovation• Small dedicated teams focused on innovation
• Autonomous operations and decisions
• Possibly separate entities
• Focused on agile and rapid development and roll-out of ideas in a stand-alone model
•These can be grass-root internal initiatives or acquisition of interesting targets
4. Organisation Model
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Disney’s has its own Venture Capitalist
program
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Digital Transformation
From ... ... toFrom ...
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5. Install Digital Leadership
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• =
“If you can't understand the new world of digital, fire yourself.
Build an executive team that is digital-first. Make sure there is a techie on the board of directors. If the board has a low digital IQ,
the company will have a low digital IQ”
George Colony CEO Forrester Research
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The people on Disney’s board? No strangers to technology!
- Jack Dorsey, co-founder of Twitter & CEO and co-founder of Square (replaced Judy Estrin, former CTO of Cisco) - Sheryl Sandberg, COO of Facebook - Orin Smith, former CEO of Starbucks - Steve Jobs, late CEO of Apple was a member
Disruption “In Our Face” — Iger on Why Disney Needs Tech Heavies on Board More Than Ever
http://recode.net/disney-needs-tech-heavies-on-board-more-than-ever/
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The ideal situation
CEOIdeally your CEO is the digital lead
Unfortunately he’s probably
not.
CIO COO CbsOSalesMkt
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So do we need a Chief Digital Officer?
CEO
CIO COO CbsOSalesCMO
Yes, we believe so. Because it is a permanent role. Digital
Disruption will be here forever.CDO
Digital Transformation Team
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Atif Rafiq, former Amazon and Yahoo executive. Now CDO of
McDonald’s since 2013.
“Our objective is to be ready to move at the
pace consumers are.”
2
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McDonald’s has a Digital Transformation team of about 20 employees, coming from Facebook, Yahoo, Microsoft, PayPal, AOL,
and various other tech companies.
The team is set to grow to 200-250 employees within the next year.
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After having managed Microsoft’s relationships with start-ups, Lubomira Rochet became CDO of
L’Oréal in 2014.
“What consumers really want is a consistent experience
with the brand and product at all touch points.”
2
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Mike Bracken is the CDO of the UK government. He oversees its
Digital Transformation, which has thus far resulted in dozens of
successful projects and hundreds of millions of pounds saved.
“Unlike previous government regimes, we’ve concentrated
zealously, almost evangelically, on users.”
3
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Finding the right people
1 23
5
4
Find the internal gemsRecruit
Acqui-hire
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1. Bring your chips to the table
2. Create your future vision
3. Start solving problems, forget ideas
4. Go for Garage Innovation
5. Install Digital Leadership
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Play on the offense instead of on the defense!