life as a service

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LIFE AS A SERVICE Aman Narain November 2014 @amanwhotweets &

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History is a great teacher. What do the Agricultural & Industrial Revolution teach us about the Digital Revolution. How will business models and values change and what must we do to adapt to a step change in the way we work and consume products and resources. Life as a Service talks about this and a lot more as we move swiftly from the era of "stack him high price em' low" to the experience and collaborative economy which are expected to cross $100Bn by 2016. Who is adopting these new philosophies and what must be done to avoid the plague of commoditization or irrelevance facing so many firms in so many industries.

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Page 1: Life as a Service

LIFE AS A SERVICEAman NarainNovember 2014

@amanwhotweets

&

Page 2: Life as a Service

Revolution or Evolution?

THE AGRICULTURAL REVOLUTION

17th CENTURY

UK

FOOD

TRADE

SUBSISTENCE

WHEN

WHERE

WHAT

CONSUMPTION

PATTERN:

CODEBLU.COM / AMAN NARAIN 2014

Page 3: Life as a Service

WHERE

WHEN

WHAT

CONSUMPTION

PATTERN:

UK, US, DE, JP

19th CENTURY

ENERGY

RESOURCES

MASS PRODUCTION

HYPER

UK

18th CENTURY

TEXTILE

TRANSPORT

EFFICIENCY

SURPLUS

What we learned from

THE INDUSTRIAL REVOLUTION

Phase I Phase II

CODEBLU.COM / AMAN NARAIN 2014

Page 4: Life as a Service

We are at the end of the beginning of

THE DIGITAL REVOLUTION

WHERE

WHEN

WHAT

CONSUMPTION

PATTERN:

US + GLOCAL

21th CENTURY

MAKER

MOVEMENT

CRYPTO

CURRENCIES

COLLABORATIVE

US

20th CENTURY

PROCESSING

POWER

SOFTWARE/HARD

WARE

HYPER

CODEBLU.COM / AMAN NARAIN 2014

Phase I Phase II

Page 5: Life as a Service

Transparency

Participation

Networked

Governance

Do-it-

Ourselves

Collaboration

Speed

More

Afflictive

With new realities created by a value shift

IN WHAT CUSTOMERS EXPECT

Source : J. Heimans: What new power looks like

Fickle

CODEBLU.COM / AMAN NARAIN 2014

Page 6: Life as a Service

Source : John Maeda, WSJ: 25 Dec, 2012

A Revolution powered by

TECHNOLOGY STANDARDS

CODEBLU.COM / AMAN NARAIN 2014

Page 7: Life as a Service

BIG DATA

CLOUD

LOW COST HIGH FIDELITY

INTERNET OF THINGS

A Revolution powered by

TECHNOLOGY INNOVATION

CODEBLU.COM / AMAN NARAIN 2014

Page 8: Life as a Service

A Revolution powered by

PLUNGING TECHNOLOGY COST

Ave

rag

e G

lob

al

Sm

art

ph

one

P

ricin

g T

ren

ds

Glo

ba

l B

an

dw

idth

Cost T

ren

ds

Glo

ba

l S

tora

ge

C

ost T

ren

ds

Source : @KPCB CODEBLU.COM / AMAN NARAIN 2014

Page 9: Life as a Service

The Digital Revolution is forcing a shift from

PRODUCT TO CUSTOMER CENTRIC

PRODUCT

PRICE

PROMOTION

PLACE

NEW POWER

MASS CUSTOMIZED

INCREASE

RESERVATION PRICE

DEMAND DRIVEN

GLOCAL

OLD POWER

MASS PRODUCED

LOW PRICE HIGH

VOLUME

SUPPLY DRIVEN

LOCAL

The difference is

due entirely to

the “how” and not

the “what,” which

the customer is

willing to pay

more for.

Niraj Dawar

Author TILT

CODEBLU.COM / AMAN NARAIN 2014

Page 10: Life as a Service

Source : A.T. Kearney analysis

Most companies are tinkering not transforming

BUSINESS MODELS(e.g. Banking Industry)

Playground for banks

Degre

e

of

Dis

ruption

Organization

and

governance

realignment

Price and

revenue

model

Culture and

people

Big data and

systems

integration

Straight –

through

processing

Seamless

channel

integration

Branch restructuring

PFM

tool

Wallet

solution

Video

Advisory

App

Suite

CODEBLU.COM / AMAN NARAIN 2014

Page 11: Life as a Service

Some companies are taking the plunge and

offering LIFE AS A SERVICE

“Forward looking

companies will redefine

themselves and move

from being just car and

truck manufacturers to

become personal-

mobility companies”

“We are no longer sell

light bulbs we are in the

business of offering

lighting as a service”

Meike De Schepper

Phillips

Bill Ford

Ford Motor Company

CODEBLU.COM / AMAN NARAIN 2014

Page 12: Life as a Service

LaaS companies are pivoting to

NEW MODELS & NEW VALUES

Source : Jeremy Heimans: What new power looks like

LaaS

NEW POWER VALUESOLD POWER VALUES

NE

W P

OW

ER

MO

DE

LO

LD

PO

WE

R M

OD

EL

XPriz

e

LinkedIn

KickstarterObama Campaign

Huff Post

Wikipedia

Bitcoin

GuardianHilary’08Nobel Prize

Apple

IRS

Monsanto

NEA

The Economist Patagonia

Unilever

NRA

Obama in Office

Google

Facebook

CODEBLU.COM / AMAN NARAIN 2014

Page 13: Life as a Service

COMPLEX

SIMPLE

BUNDLED

UNBUNDLED

CHOICE

LaaS firm are innovating around the

AXIS’ OF DISRUPTION

EXPERIENCE

SECRECY

PRIVACY

TRUST

POST PAID

SUBSCRIPTION

PRICING

INFORMATION

INSIGHT

DATA

OLD POWER MODEL

NEW POWER MODEL

Page 14: Life as a Service

LaaS firm are innovating around the

AXIS’ OF DISRUPTION

CODEBLU.COM / AMAN NARAIN 2014

OLD POWER MODEL

NEW POWER MODEL

INTERMEDIATES

DIRECT

CAMPAIGNS

COMMUNITY

WALLET

KLOUT

SEGMENTATIONMARKETING DISTRIBUTION

TENURE

USAGE

LOYALTY

MASS PRODUCE

MASS CUSTOMIZE

PRODUCTS

Page 15: Life as a Service

NEW POWER VALUESOLD POWER VALUES

HELD BY FEW

Source : Jeremy Heimans: What new power looks like

MADE BY MANY

DOWNLOADS UPLOADS

COMMANDS SHARES

LEADER-DRIVEN PEER-DRIVEN

CLOSED OPEN

CODEBLU.COM / AMAN NARAIN 2014

Page 16: Life as a Service

Why do you want to be a

LaaS COMPANY

AVOID COMMODITIZATION

EMPOWERED STAFF

SUSTAIN PROFITABILITY

NEW REVENUE SOURCES

SAVE THE PLANET

Source :Graphic by Vladimir Mirkovic, http://bit.ly/ColEcoDay

1

2

3

4

5

CODEBLU.COM / AMAN NARAIN 2014

Page 17: Life as a Service

THANKS@amanwhotweets

Opinions: amanwhoblogs.com

Website: codeblu.com

Lab: aleph-labs.com