mtn workshop 1 digital disruption
TRANSCRIPT
The Digital Age is HERE!!!
Elo Umeh
Co-Founder and CEO Terragon Group
Vision Statement: Innovation to make Mobile Meaningful
Mission Statement: To be Africa's largest digital media business through the use of information to drive digital inclusion and innovation, which meets the needs of our customers and facilitates scale and sustainability of the business in the long term.
The Business:
Twinpine Ltd –Mobile
Advertising
Terragon Media Limited – Digital Media Agency
Terragon Limited – Access and Aggregation
In the Era of Digital Darwinism, no business is too big to fail or too small to succeed. Adapt or Die!
- Brian Solis: The end of business as usual
Expectations changing rapidly
Cost dropping everyday
Competitve Landscape changing
Plug and Play Dynamics
The Digital Disruption
• Digital Disruption explodes the status quo and pushes a business into new dimensions while questioning its very own survival.
• The digital economy is changing the very nature of consumption, competition and how markets works.
Digital Disruption Varies by Industry
Mobile Telecoms
Consumer Electronics
retailing
Retail Banking
Music Retailing
Airline & Hotel
Bookings
Grocery/Apparel Retailing
Health
Education
Digitization of Business Verticals
Going Digital To Grow
Embrace Digital In Line with Unique Opportunity
Estimate the value at
stake Prioritize
Take an End-to-end
View
Align business portfolio
accordingly
Be clear on the digital sales and cost-reduction opportunity available
Be selective. Start from areas that would likely deliver the greatest ROI and best customer outcomes
Product offering on both front and back end must align
Divest where necessary . Identify holdings that’s are likely to underperform in new environment and slough them off
What is Driving the Disruption?
Cloud Technology
Mobile Internet
Internet of Things
How these Disruptive technologies could Affect, Society Business and
Economies
Mobile Internet
Smart Phones & Tablets Wearables High – Speed wireless connectivity
Applications
Mobile Internet: Potentials For Acceleration
• Accelerating growth of mobile internet use will have significant impact in developing economies.
• Mobile internet will be driven by how well device makers and mobile internet services tailor their offerings.
Mobile Internet: Potential Economic Impact by 2025
Sector Application Productivity Gain
Education Hybrid (Online and Offline) teaching Models
Increase Graduate rate of 5% to 15%
Public Applications for citizen Services (information requests, license applications & tax payment)
Raise productivity by 60% -70%
Public & Private Mobile Payment Save 50% – 70% of processing cost over paper transactions.
Source: MGI, Disruptive Technology, 2013
Internet of Things
Anything that can be connected will be connected.
- What if your alarm clock wakes up you at 6 am and then notifies your coffee maker to start brewing coffee for you?- What if your office equipment knew when it was running low on supplies and automatically re-ordered more?
Connection of any device with an on and off switch to the Internet (and/or to each other). This includes everything from cell phones, coffee makers, washing machines, headphones, lamps, wearable devices and almost anything else you can think of.
IOT – Potential Economic Impact by 2025
Sector Possible Application Productivity Gain
Agriculture Use sensors to gather data on conditions of crops and livestock
10-20% increase in yield
Urban Infrastructure Traffic applications for Monitoringtraffic, smart water system for managing water loss and identifying leakages and damages, smart waste handling.
Raise productivity by 60% - 70%
Manufacturing Sensors can be used to track machinery, inventory, and reduce work in progress
10-20% reduction in traffic time, water leaks and waste handling
Health Improved efficiency in treating chronic conditions – Out-of-hospital treatment and remote monitoring.Using sensors on bottles to reduce sale on fake drug
Reduced cost of chronic disease treatment by 10% - 20%.Reduce drug counterfeiting by 80% -100%
Source: MGI, Disruptive Technology, 2013
Cloud Computing
In the new Information Age, cloud computing provides on-demand self-service, anytime and anywhere by pooling of computing resources for multiple users or organizations.
Cloud Computing: Potential for Acceleration
• Rapid Acceleration of services and applications for internet clients.
• Increasing SMEs who don’t have resources to build and manage extensive IT infrastructure.
Competing in the Digital Age
• Digitization lowers barriers, disaggregates value chains, and creates opening for focused, fast moving competitors.
• Digital Capabilities increasingly determine which companies create value or lose value.
What is your Competitive Strategy• Buy or sell Businesses in your portfolio?
- Profitability of some businesses become less attractive in a digital world. Companies that Lack sufficient scale or expect significant digital
downside should consider divesting businesses.
• Lead your customers or follow them?- Inaction is risky
• Cooperate and compete with attackers?- Digital technologies are opening a pathway to collaborative forms of
innovation
What is your competitive Strategy
Diversify or Double down on digital Initiatives?- While diversification reduces risks, new initiative however innovative can be easily replicated by competitors.
Keep Digital Businesses separate or integrate them with current non digital ones?- Companies with diverse business portfolios could use a hybrid approach to create a standalone and a well-integrated digital organization.
Delegate or own the digital agenda?- CEOs can choose to own and direct the digital agenda personally, top down.- Chief Digital Officer can be hired to drive digital agenda, however, this carries some risks of balkanization
Differentiating yourself in the Digital Age
Traits of Effective Digital Companies
Be unreasonably Aspirational:- If your targets aren't making the majority of your company feel nervous, you probably aren't aiming high enough
Acquire capabilities: - Buy scarce talent. Hire for skills and not experience. The best people in product management or user experience may not be in your industry. Hire them anyway.
Challenge Everything: - Look out how everything in your business is done and ask ‘why’ Assume there is an unknown start-up asking the exact same question as it plots to disrupt your business.
Be quick and data driven: - Rapid decision making is critical in dynamic digital environment. Adopt methods such as agile development and live beta , supported by big data analysis, to increase the pace of innovation
Follow the money: - Digital transformation is more than just finding new revenue streams. It’s also about creating value by reducing the cost of doing business
Obsessed with the customer:- A healthy obsession with improving customer experience is the foundation of any digital transformation
Last Words . . .
The emergent nature of digital forces means that harnessing them is a journey, not a destination - a relentless leadership experience and a rare opportunity to reposition companies for a new era of competition and growth.