eretail europe 2015 - sergio pelayo de leon - lg electronics
TRANSCRIPT
A fresh start up inside
your company
Sergio de LeónOctober 2015
• Degree on Economics• Degree on Business Administration• Degree in Law.
• Worked 1 year for HERTZ • Worked 4 years for DIAGEO.
• Been working 6 years for LG.• Ecommerce, digital and media
Director
Twitter: @sergiopelayode
Linkedin: deleonsergio
Sergio-Pelayo de León Cosmen
1st PHASE 2nd PHASE 3rd PHASE
The start-up creation boom is generated because we aren´t offering the products, the services nor the job positions that this generation demands.
MILLENIALS: Born in the 80´s and 90´s.
“Operational Effectiveness (O.E.) is not strategy.”
M. Porter 1996
• OE is efficiency: better, faster, cheaper…
• Benchmarking, best practices, outsourcing. Copy and improve.
• Japanese companies in the 80´s. Korean companies in the 90´s.
• Approaching the efficiency frontier reduces costs and therefore price but doesn´t add real value.
2014: LG G3 vs. Competition
LG G3 SS Galaxy S5
Sony Xperia Z2
Sony Xperia Z3
CPU QuadCore 2.5GHz
Quad-core 2.5 GHz
QuadCore 2.3 GHz
Quad-core 2.5 GHz
OS Android Kit Kat
Android Kit Kat
Android Kit Kat
Android Kit Kat
Dis-play 5.5” Quad HD
5,1” FHD Super
AMOLED5,2” Full HD 5,2” Full HD
Mem-ory3 GB/ 2GB
RAM16/32 GB
2GB RAM16/32GB
3GB RAM16GB ROM
3GB RAM16GB ROM
Camera 13 MP/ 2,1MP 16 MP/ 2MP 20.7 MP 20.7 MP
Battery 3000mAh 2800 mAh 3200mAh 3100mAH
CAPITALISM IS BASED IN MARKET INEFFICIENCIES THAT ARE DISAPPEARING
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XVIII-XIX CENTURY. 1st Industrial RevolutionKoenig´s
Steam press 1814
XIX-XX CENTURY. 2nd Industrial Revolution
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XXI CENTURY. 3rd Indutrial Revolution?
Some facts:
• They leave their parents home late. Spain average 28,9 years old. life situations vs. work situations.
• They create families later and with less kids. more leisure spending. Working and leisure periods impact.
• 21% of them think they won´t even have retirement pension at all retribution schemes.
• 84% think that they will work abroad. career path propositions
• 77% think that speaking English is more important than a college degree. self educated. Roles and responsibilities. Working language. Home office.
• Media consumption is digital, immediate and global working hours, materials, systems, information sources,…
MILLENIALS: Born in the 80´s and 90´s.It´s not only your new consumer…
Source: Nielsen, Third Cambridge Monitor barometerand Eurostat.
but your new colleague at work!
King Juan Carlos I at his office
King Felipe VI at his office
Osama Aljasem, sirian refugee, to The Washington Post: “I could have never arrived to my destiny without my smartphone”.
CRAIG LEWIS life model
• Average use of a home drill… 12 minutes.
• 16 top sharing start ups created in Spain.
• 53% of spanish consumers are willing to share or rent goods through social economy. Nielsen Spain.
There are cities that are joining quickly… Seoul.
Illustration by Joe Magee
Well stablished companies with:
- economic resources and capacity - brand reputation
- global reach- market experience- talented professionals
…aren´t offering the products, the services nor the job positions that this generation demands.
FROM 10 TO 20 YEARS IN AVERAGE.In Spain only 13% of the companies are over 20 years old
A fresh start-up inside your multinational.
What do entrepreneurs search for at their job:
- Project salary position. In that order!- Generic R&Rs that enable broad project development- Salary based in achievements but aggressive. Feel they obtain as much as the company for the work- Recognition if the company is very vertical.
- Autonomy.
- Some times even physical. i.e. Apple, Carrefour.- Ownership and responsibility over own work. - Flexibility to skip processes and systems (even working hours). i.e. Alphabet.
- Top management back-up.- Freedom to fail without punishment.- Thrust to impulse the company to break down barriers. Isomorphism.
- Guidance.- How do we mix the present and the future talent.- If they could do it on their own… they would. The project has to be richer thanks to the company´s
resources. But they don´t certainly need a legal department that tells them this can´t be done.- Ownership.
INTRAENTREPRENEURS: THE WAY TO EXPAND YOUR COMPANY LIVE
CHANNEL CONFLICT: FIRST PROBLEM WHEN STARTING - UP
Channel conflict is the reason why a Sales Director
is paid
Verbatims heard when addressing channel conflicts:
1. What he has today you will have it tomorrow. 2. Anyone that does this (quantity) will obtain that (price).3. If he does it I will do it also… or you´ll see…4. Retain some part of what you claim I´m taking away from you.5. It is exclusive for you. It is tailored for you. 6. Stop returning products and I will stop reselling them.7. You don´t want to sell it anymore… so I have to find my way out.
Questions?
BIBLIOGRAPHY
• Article: “What is strategy?” Michael E. Porter. 1996.
• Video. Golden circle. Simon Sinek. Youtube.
• “Our iceberg is melting. Changing and succeeding under any conditions.” John Kotter and Holger Rathgeber. Ed. Macmillan. 2006.
• Video. Tesla presentation of domestic battery. Youtube.
• Book: What would Google do?” Jeff Jarvis
• Book: The zero marginal cost society. Jeremy Rifkin.
• Book: Postcapitalism. Paul Mason. Penguin books.
• Paul Mason: http://www.theguardian.com/books/2015/jul/17/postcapitalism-end-of-capitalism-begun
• Article: “Reinventing ypur busness model” by Mark W. Johnson, Clayton M. Christensen and Henning Kagermann.
