disrupt or be disrupted: why digital connectivity matters to b2b companies
TRANSCRIPT
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WHY DIGITAL CONNECTIVITY MATTERSTO B2B COMPANIES Digital Jam Session Philadelphia / February 28th, 2017
Erich Joachimsthaler, Ph.D./Founder & CEO of Vivaldi/
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THE INTERNET OF THINGS
VIVALDI
An Explosion of Connected Possibility
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3VIVALDI
YEARS OF 1960s – 1970s
Pipeline (Traditional Value Chain) Business
R&D Production Marketing Customer
Automation of individual activities in the value chainStandardization of processesCompetitive advantage: quality at scale
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Pipeline (Traditional Value Chain) Business
VIVALDI
YEARS OF 1980s – 1990s
R&D Production Marketing Customer
Rise of the internet, ubiquitous connectivityCoordination and integration across individual activities and suppliers, channels, and customersGlobal supply chainCompetitive advantage: differentiation through features
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Connectivity of EverythingPipeline is hooked up to the platformTechnology evolution from cloud, social and mobile to Internet of Things, AI, quantum computing, etc.Competitive advantage: Not just the product but the platform
VIVALDI
TODAY
Platform Business
Platform Ecosystem
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MyJohnDeere Platform
VIVALDI
Intelligent farming
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JOHN DEERE’S 8R / 8RT 24-ROW EXACTEMERGE PLANTER
VIVALDI
• Top speed 10 miles/hour• 80 seeds per second• Tractor has 20 processors• Planter has 77 processors• 6 million lines of code• Sends data to the tractor cab to JDOC (AWS)• Connects tractor operator and remote farm manager• Connects machines with one another• Coordinates work in the field
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8VIVALDI
“The ability to have data anywhere, anytime, at a much lower cost, at a much faster speed, and on a much higher scale and level of flexibility provides a significant opportunity for us.”
Patrick Pinkston, former John Deere Vice President
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JOHN DEERE PLATFORM EVOLUTION
VIVALDI
• Open up platform to others (third-party developers) and connect - Farmers,
- John Deere dealers, - Software companies, - Seed and fertilizer manufacturers- University researchers
• SaaS applications- Climate cloud
• Big data applications- Weather forecasting, plant genomics, and agronomic studies
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JOHN DEERE VISION
VIVALDI
From selling and servicing big
equipment
To a commitment to those linked to
the land
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WHAT MAKES A GREAT PLATFORM?
VIVALDI
• Facilitates interactions between parties• Open, third-party developers or ecosystem• Creates value on the top of technology
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HealthSuite Digital Platform
VIVALDI
Connected Care
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PHILIPS TARGETS CUSTOMER AND CONSUMER NEEDS ALONG THE HEALTH CONTINUUM
VIVALDI
Source:Philips
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HEALTHSUITE DIGITAL PLATFORM
VIVALDI
Support for the heathcare consumer’s ecosystem
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DESIGNED TO ENHANCE DECISION-MAKING
VIVALDI
For both healthcare professionals and consumers by incorporating advanced visualization and decision support analytics
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INTEGRATING DATA SOURCES FOR DIFFERENT CONTEXTS
VIVALDI
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PERSONAL HEALTH PROGRAMS
VIVALDI
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PRO-ACTIVE CARE AT BANNER HEALTH
VIVALDI
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19VIVALDI
WHAT MAKES A GREAT PLATFORM?
• Facilitates interactions between parties
• Open, third-party developers or ecosystem
• Creates value on the top of technology
• Creates value for all parties involved (social currency)
• Network effects
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GoPro Platform
VIVALDI
Exponential Experiences
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21VIVALDI
“GoPro helps people capture and share their lives’ most meaningful experiences with others.”
Nicholas Woodman
A SIMPLE CONSUMER EXAMPLE
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TOTAL DIGITAL CAMERAS SHIPPED PER YEAR
VIVALDI
Source: Camera and Imaging Products Association (CIPA)
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GOPRO REVENUES AND GROWTH RATES
VIVALDI
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THE GOPRO PLATFORM (A VIRTUOUS CYCLE)
VIVALDI
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GOPRO’S RESULTS
VIVALDI
47% market share in
2015
1,282,169,559 YouTube
Views
16+ Million social media
engagements in 2015
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EXPONENTIAL GROWTH THROUGH NETWORK EFFECTS
VIVALDI
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SOURCES OF THE NETWORK EFFECT
VIVALDI
• CONNECTIONNetworks become more useful as a user’s connections increase
• CONTENTUsers discover and consume content created by other users
• CLOUDPower users enjoy influence and cloud on the network
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WHAT MAKES A GREAT PLATFORM?
VIVALDI
• Facilitates interactions between parties
• Open, third-party developers or ecosystem
• Creates value on the top of technology
• Creates value for all parties involved
• Powerful and positive EXPONENTIAL network effects
• Gravitational pull
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Pipeline (Traditional Value Chain) Business
VIVALDI
THIS IS A BIG PICTURE CHANGE
R&D Production
Marketing
Customer
Value creation is linear and one-way
Platform
Ecosystem
Platform Business
Value creation is two-way and continuous
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DIGITAL LEADERS FROM NON-TECH SECTORS ARE NOW ALSO BUILDING PLATFORMS
VIVALDI
Source: 2016 Accenture
• Having a platform strategy and the business know-how to exploit it is more important than “owning” an ecosystem.
• By 2018, IDC predicts that more than 50% of large enterprises – and more than 80% of enterprises with advanced digital transformation strategies – will create and/or partner with industry platforms
• IDC predicts that the number of industry clouds will reach 500 or more by 2018, up from today’s 100-plus
Pfizer
Novartis
Merck
Carepass
Cigna
edX
Walmart
American Express
Nasdaq OMX
Schneider
GE
Bosch
ABB
Disney
SONY
Ford
GM
TomTom
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SOME GUIDELINES
VIVALDI
• What are you solving for? What is the domain? How are you creating exponential value?
• How will we configure the platform? What implications does this have for the culture, business model, processes, leadership, infrastructure, customer experience?
• What is the role of the B2B marketer in value creation for all parties in the ecosystem?
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SOURCES
VIVALDI
• https://www.slideshare.net/AWSAktuell/aws-fallbeispiele-zur-digitalen-transformation-aws-cloud-web-day-fr-mittelstand-und-grounternehmen?qid=40d9fb16-ca56-4872-861f-2e932e4b332b&v=&b=&from_search=3
• https://www.slideshare.net/ForgeRock/2015-identity-summit-philips-case-study-new-healthcare-solutions-and-patient-experiences-made-possible-with-iam?qid=75cdefcf-004f-47c4-9b49-89e1482906da&v=&b=&from_search=1
• https://www.slideshare.net/HealthSPAfi/philips-innovating-in-the-healthcare-continuum-rocco-van-der-berg-philips?next_slideshow=1
• https://www.slideshare.net/AccentureTechnology/platform-economy-tech-vision-2016-trend-3?qid=0e1ec7cd-b8f8-4458-8ab6-0495ae20b069&v=&b=&from_search=7
• https://www.slideshare.net/InfoEcon/platform-shift-how-new-business-models-are-changing-the-shape-of-industry?qid=d66b9f24-f51e-4468-8521-44729f6659d4&v=&b=&from_search=1
• https://www.slideshare.net/sanguit/the-platform-manifesto-16-principles-for-digital-transformation/31-Eventuallyscaling_onan_ecosystem_modelSource_PLATFORM