Download - Keynote Brian Curran - oowBR 2016
Digital Disruption: It’s Still About People & Business Fundamentals
Brian J. CurranVice PresidentCustomer Experience Strategy & Design
Digital DisruptionWhat is it?
How do I disrupt?How do I build disruption into my organization’s DNA?
resultsfinancial value
for the business
needsfunctional & emotional motivators
experiencesperception of the engagement
( useful, usable and meaningful )
attitudeswhat I am thinking
behaviorswhat I am doing
expectationsbeliefs about impending engagement
(before, during, next)
DRIVE DELIVER
engagementsinteractions along the journey
INFLUENCE
FRAME
SHAPE
Useful Experiences
Appropriate Timely ConsistentEffective Accurate
What a product, service & engagement offers customers functionally
Useable Experiences
Convenient Easy IntuitiveStreamlined Tailored
How much effort is needed to engage an organization and it’s offerings
Meaningful Experiences
Personal Emotional StylishTrusted Memorable
How meaningful experiences are at an
emotional level
Useful Experiences
Appropriate Timely ConsistentEffective Accurate
What a product, service & engagement offers customers functionally
Useable Experiences
Convenient Easy IntuitiveStreamlined Tailored
How much effort is needed to engage an organization and it’s offerings
Meaningful Experiences
Personal Emotional StylishTrusted Memorable
How meaningful experiences are at an
emotional level
EMOTIONAL NEEDS
The motivation behind the functional needs
FUNCTIONAL NEEDS
The most basic requirements for completing a journey
7
P.E.S.T.L.E. SITUATIONAL CONTEXT PREVIOUS ENGAGEMENT GEO DEMOGRAPHICS
Macro factors that are generally outside the
control of an organization
• Political
• Economic
• Social
• Technical
• Legal
• Environmental
The group of conditions that exist where and when something happens
• Time of Day
• Date Significance
• Location
• Surrounding Noise
• Device Status
• Ambient Temperature
Historical interactions with the organization, it’s partners, or
competitors
• Recency
• Frequency
• Adoption
• Stickiness
• Advocacy
• Lifetime Value
Regional, generational, and other demographic
influences
• Population Distribution
• Income
• Age
• Culture
• Employment
• Education
Factors Influencing Customer Expectations
Disruption
A radical change that creates a new market and value network and eventually upsets an existing market and value network,
displacing established market leaders and alliances.
~ Clayton M. Christensen
noun| /disˈrəpSH(ə)n/
Innovation
An idea executed to meet a need
noun| /inəˈvāSH(ə)n/
Types of Innovation
SUSTAINING INNOVATION
Current SegmentsKnown NeedsMature Trends & Accelerators
BREAK-THROUGH INNOVATION
Current SegmentsKnown NeedsImmature Trends & Accelerators
Underserved SegmentsUnknown & Unmet NeedsMature Trends & Accelerators
DISRUPTIVE INNOVATION
EnvironmentPolitical Economic Legal
Data Privacy
PESTLEmacro trends & accelerators
Technology
Messaging
Social
Selfies
We know the examples, but what exactly is disruptive about them?
Uber Spotify Netflix AirBnB Facebook Amazon WhatsApp
Google MapsDJI DronesZillowSquareAlibabaFitbitTesla
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. For whom are we creating value?
2. Who are our most important customers?
3. What are the customer archetypes?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. What value do we deliver to the customer?
2. Which one of our customer’s problems are we helping to solve?
3. What bundles of products and services are we offering to each segment?
4. Which customers needs are we satisfying?
5. What is the minimal viable experience?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. Through which channels do our customer
segments want to be reached?
2. How do other companies reach them now?
3. Which ones work best?
4. Which ones are most cost–efficient?
5. How are we integrating them with
customer routines?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. How do we get, keep, and grow customers?
2. Which customer relationships have we established?
3. How are they integrated with the rest of our business model?
4. How costly are they?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. For what value are our customers really willing to pay?
2. For what do they currently pay?
3. What is the revenue model?
4. What are the pricing tactics?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. What key resources do our value
propositions require?
2. What key resources do our
distribution channels require?
3. What key resources do our
customer relationships require?
4. What key resources do our
revenue streams require?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. What key activities do our value propositions require?
2. What key activities do our distribution channels require?
3. What key activities do our customer relationships require?
4. What key activities do our revenue streams require?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. Who are our key partners?
2. Who are our key suppliers?
3. Which key resources are we acquiring from our partners?
4. Which key activities do our partners perform?
Key Partners Key Activities Value Propositions
Customer Relationships
Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Designed by: Strategyzer AG
This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.
1. What are the most important costs inherent in our business model?
2. Which key resources are most expensive?
3. Which key activities are most expensive?
There are many ways to disrupt a business model
• Turn beliefs upside down
What if LED technology puts an end to the lighting industry as a replacement business?
Philips Lighting
What if you can get stuff done in chunks by accessing a global workforce in small increments?
TaskRabbit
What if people who shopped in discount stores would pay extra for designer products?
Target
What if consumers want to buy electronics in stores, even after Dell educated them to prefer direct buying?
Apple
• Four Action Framework: Eliminate, Reduce, Raise, Create
• Look at individual building blocks
• Embrace established patterns
What are established patterns?
Patterns
Business models with similar characteristics, similar arrangements of business model building blocks, or similar behaviors.
List from The Business Model Navigator, by Gassman, Frankenberger, & Csik
Add-OnAffiliationAikidoAuctionBarterCash MachineCross-SellingCrowdfunding
Flat RateExperience Selling
Fractional OwnershipFranchisingFreemium
E-Commerce
CrowdsourcingCustomer Loyalty
Direct SellingDigitization of Physical Products
From Push to PullGuaranteed AvailabilityHidden RevenueIngredient BrandingIntegratorLayer PlayerLeverage Customer DataLicensing
Open BusinessNo Frills
Open SourceOrchestratorPay per Use
Multi-Sided Platforms
Lock-InLong Tail
Mass CustomizationMake More of It
Pay What You Want
Peer to PeerPerformance-based ContractingRazor and BladeRent Instead of BuyRevenue SharingReverse EngineeringReverse InnovationRobin Hood
Trash to CashTarget the Poor
Ultimate LuxuryUnbundlingUser Design
Supermarket
Self-serviceShop in Shop
SubscriptionSolution Provider
White Label
Multi-Sided Platform
Bring together two or more distinct but interdependent groups of customers.
Value to one group of customers only if the other groups of customers are also
present.
The platform creates value by facilitating interactions between the different groups.
A multi-sided platform grows in value through the network effect.
~ Osterwalder, Alexander; Pigneur, Yves. Business Model Generation
Publishers Readers
Homeowners Renters
AirBnB
Advertisers Consumers
Google AdWords
Owners Buyers
ebay
Musicians Listeners
Spotify
Multi-Sided Platform Examples
Taxicab Industry
1662: First hackney-carriage licenses issued in England
1834: Horse-drawn hansom cab patented
1891: Modern taximeter invented
1897: The world's first gasoline-powered taximeter-cab
1940’s: Two-way radios first appear in taxicabs
1980’s: Computer-assisted dispatching
Uber
Type: Private
Industry: Technology
Founded: March 2009
Headquarters: San Francisco, California USA
Services: Taxicab, Vehicle for hire
Number of employees: 6,700
“I need a ride”Need to get from point A to point B
Need to feel that the car will be safe and clean
Need to know how much it is going to cost
Need to know when the car will get here
Need to know how long it will take to get to point B
Need to make it easy to pay for the ride
Need to share my feelings about the experience
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas
Flexible work schedules
Use personal vehicle
Passengers on-demand
Transparent waiting time
Cashless ride
Safe & clean cars
Passengers
Drivers
Highly automated
Digital (mobile & social)
PR
Software development
Driver onboarding
Software platform
Pricing/routing algorithm
Platform development
Sales & Marketing
Local regulatory agencies
Mapping data providers
Payment processors
Drivers with own cars
Pricing/routing algorithmEmployee Salaries
Driver Payouts
Pay per Ride charges
Surge pricing
Premium Uber brands
Convenient public transit PassengersSignificantly manual
Phone & on-street
Driver dispatch & Cars
Drivers, cars, dispatch
Local regulatory agencies
Pay per Ride chargesSalaries & Cars
Vehicle advertising
TAXI UBER UBER PASSENGER
UBER DRIVER
Businesses Needing Courier Service
Uber fulfilled unmet needsNeed to get from point A to point B
Need to feel that the car will be safe and clean
Need to know how much it is going to cost
Need to know when the car will get here
Need to know how long it will take to get to point B
Need to make it easy to pay for the ride
Need to share my feelings about the experience
Source: ANDREW HARRER/BLOOMBERG/GETTY IMAGES
Uber targeted people willing to become part-time drivers: An under-served segment
Bringing the Trends & Accelerators Together
Explosion of data availability and richness
Underserved SegmentsUnknown & Unmet NeedsMature Trends & Accelerators
DISRUPTIVE INNOVATION
Preference for cashless payments
Preference for mobile-first engagements
“Gig economy” becomes accepted
Sharing economy becomes mainstream
List from The Business Model Navigator, by Gassman, Frankenberger, & Csik
Add-OnAffiliationAikidoAuctionBarterCash MachineCross-SellingCrowdfunding
Flat RateExperience Selling
Fractional OwnershipFranchisingFreemium
E-Commerce
CrowdsourcingCustomer Loyalty
Direct SellingDigitization of Physical Products
From Push to PullGuaranteed AvailabilityHidden RevenueIngredient BrandingIntegratorLayer PlayerLeverage Customer DataLicensing
Open BusinessNo Frills
Open SourceOrchestratorPay per Use
Multi-Sided Platforms
Lock-InLong Tail
Mass CustomizationMake More of It
Pay What You Want
Peer to PeerPerformance-based ContractingRazor and BladeRent Instead of BuyRevenue SharingReverse EngineeringReverse InnovationRobin Hood
Trash to CashTarget the Poor
Ultimate LuxuryUnbundlingUser Design
Supermarket
Self-serviceShop in Shop
SubscriptionSolution Provider
White Label
Innovation Design Process
Innovate
Frame
Pilot
ProposePlan
Focus: Structured, disciplined brainstorming in order to develop ambassadors, and equip, enable, and empower them to envision possibilities, and produce concepts of clear value to the customer and to the business.
Focus: Attain a level of clarity around the real opportunity and the motivation to innovate in order to change a financial result
Focus: Produce a proposal and presentation in order to get approval to proceed through to Pilot
Focus: Develop the detailed execution plan that specifies who, what, when, where, and how to engage with the customer in order to deliver the pilot experience
Focus: Build, test and measure the minimally viable experience in the market
Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Key Resources Channels
Cost Structure Revenue Streams
The Business Model Canvas DIGITAL APLICATIONS
DIGITAL ANALYTICS
INNOVATION ENVIRONMENT
INFORMATION & BIG DATA MANAGEMENT
CHANNEL MANAGEMENT
INTEGRATION & SERVICE MANAGEMENT
InsertYour
DisruptionHere
Innovation
An idea executed to meet a need
noun| /inəˈvāSH(ə)n/
be disruptive
www.linkedin.com/pub/brian-j-curran/1/257/92
www.designingcx.com
Digital Disruption: It’s Still About People & Business Fundamentals
Brian J. CurranVice PresidentCustomer Experience Strategy & Design
Thank you