disruption in our economy, and the impact of digital transformation
1) trends
2) drivers for change
3) business models
4) how to respond to the disruption?
1. DISRUPTION & DIGITAL TRANSFORMATION
8TH, 9TH & 10TH MARCH 2016
8TH INTERNATIONAL WEEK
2. digital transformation
• Digital transformation or disruption
→ some cases
• Modeling
• How should organizations deal with digital
transformation?
CONTENT
3. A WAKE UP CALL
TRENDS
trends
drivers
models
response
4. trends
DO YOU REMEMBER WHAT HAPPENED WITH THESE COMPANIES?
can you give some
examples of industries
that are
• out of business
• or are threatened
by
• disruption
• digital transformation
The Great Wave off Kanagawa, Katsushika Hokusai
22. trends
• Do you recognize this building?
• Chrysler Building, Manhattan, NY
• represents power
→ car companies
→ oil industry
ARCHETYPE ‘OLD’ BUSINESS
23. trends
• and this building?
• headquarters Apple, Cupertino
ARCHETYPE ‘NEW’ BUSINESS
24. trends
• and this one?
• new headquarters Amazon, Seattle
• these are the new power bases
ANOTHER EXAMPLE
25. trends
• What’s the next business that will be disruptive
according to you? ….
GROUP DISCUSSION
32. drivers
• technological innovation
→ social networks
→ user friendly apps
→ mobile devices
→ online review systems
DRIVERS OF TRANSFORMATION (DOT’S)
37. drivers
• profit driven
• IP protected
• central management
• co-modification
• impact-driven
• open access, collaboration
• collective management
• co-notification
OLD WAY NEW WAY
41. drivers
• before: monolithic models
→ top down logic
→ only a few people had access to all the information
→ information was controlled & filtered
• now: internet & social media
→ 2 way communication customer & stakeholders
→ conversation management
METAPHOR OF TRANSPARENCY
42. drivers
• traditional business
→ combination of different products & services
• traditional newspaper
→ bundle of information
→ small price
• digital newspaper
→ same offer, but now on pc, tablet, smartphone
→ copy, paste
• but each atomic part has new competitors
METAPHOR OF MONOLITHIC VS. ATOMIC ORGANISATIONS
43. drivers
• breaking news
• in-depth analysis
• trends & lifestyle
• weather
• jobs
• sports
• etc….
WHAT IS THE ALTERNATIVE FOR…
45. drivers
• traditional shop
→ more space for products
→ popular
→ profitable
LONG TAIL
• web shop
→ if it exists, you can buy it
→ even small group
customers
→ but worldwide = profitable
46. drivers
• smartphone + app
• anything is on the tip of your fingers
→ swipe
→ click
• example
→ Uber
INSTANT GRATIFICATION
53. drivers
• fear
→ ‘off the network’
→ no wifi
• at ease when
→ full battery
→ five bars
• constantly sharing
→ we feed the network
GEN Z = EXTREMELY CONNECTED
64. drivers
• gamification
• internet of things
• wearables
• 3D printing
• quantified self
• robotics
• drones
• big data
• monitoring
MORE STUFF TO COME
75. business models
• centralized
→ client server model
→ only 1 node
→ you always need to pass
the center
• decentralized
→ you can bypass the center
→ several nodes
• distributed
→ no nodes anymore
• Question: can you apply
this model to business models?
NETWORK TERMINOLOGY
76. business models
• centralized
→ Mc Donalds decides
→ Bpost
• decentralized
→ Sapa = aluminum company
→ Colruyt group
→ dreambaby
• distributed (P2P)
→ Wikipedia
→ Wikispeed *
→ AirBnB
→ Tapazz (car rental)
BUSINESS TERMINOLOGY
77. business models
• reality = hybrid models
→ P2P
→ centralized
• AirBNB
→ takes a percentage
• Uber
→ decides price strategy
REALITY = HYBRID MODEL
78. business models
• flagships
→ Google
→ Facebook
→ Twitter
→ Instagram
• where do they get the money?
→ advertising
FREE MODEL
83. business models
• Music
→ you don’t buy CD’s
→ you ‘rent’ streaming
music
→ Spotify
→ Apple music
→ Deezer
• video’s
→ netflix
• data
→ drop box
• software
→ office 365
MEMBERSHIP MODEL
89. how to deal with it?
source: Digital transformation, Jo Coudron (book, you tube)
90. how to deal with it?
• digital disruption is real
• expect a smack in the face
A SMACK IN THE FACE
91. how to deal with it?
• who is going to be your
→ uber
→ airbnb
→ Netflix
→ zalando
→ tesla
→ …
A SMACK IN THE FACE
92. how to deal with it?
CREATE YOUR OWN DIGITAL TRANSFORMATION VISION
https://www.youtube.com/watch?v=8wGq0e_n3n4
source: digital transformation, Jo Coudron
93. how to deal with it?
CREATE DIGITAL LEADERSHIP
source: digital transformation, Jo Coudron
94. how to deal with it?
• score your leadership team on active usage and or
understanding of new technologies
• if the majority of leadership is out,
the company is out ….
LEADERSHIP ASSESSMENT
CEO sales mkt HR Fin prod. R&D ….
Facebook x x
twitter x x
LinkedIn x x x x x
you tube x x x
snap chat x
Instagram x
…
you can also apply this
to your university
source: digital transformation, Jo Coudron
95. how to deal with it?
TRANSFORM ORGANIZATION PHILOSOPHY
source: digital transformation, Jo Coudron
99. how to deal with it?
• rather than thinking about sharing markets,
we need to think about creating markets!
SHARING OR CREATING?
100. how to deal with it?
• traditional structures
→ procedures
→ rules
→ budgets
• speed?
→ slow
• goal
→ keep business going
CLASSIC INNOVATION
101. how to deal with it?
• project teams
→ small
→ dedicated
• speed?
→ agility
→ flexibility
• think ‘out of the box’
• can even be threat traditional activities
→ possible cannibalization
• example
→ Google
NEW INNOVATION
103. how to deal with it?
• example : Microsoft employees
• company: between 10h - 14h and at home (skype business + office 365 +…)
NEW WORLD OF WORK
104. how to deal with it?
BUILD THE TRANSFORMATION FLEET
105. how to deal with it?
• study with humans
→ max. of about 150 people
→ if more people
→ more structures
→ more rules (laws)
→ more tools
→ more processes
ROBIN DUNBAR STUDY
106. how to deal with it?
• make an educated guess….
DARWIN
107. how to deal with it?
• the customer always decides
• all things you do must start from a superior
experience
• from now on, you are an agile & flexible company
• you live in a world of constant uncertainty, deal
with it
• always play on the offense instead of the defense
• don’t be afraid to cannibalize your own business
• never, ever, disrespect new or small players
CHANGE THE CULTURE
108. how to deal with it?
• how can we explain the success of Uber?
THE CUSTOMER ALWAYS DECIDES
109. how to deal with it?
ALL THINGS YOU DO MUST START FROM A SUPERIOR EXPERIENCE
110. how to deal with it?
• customer centric
FROM NOW ON, YOU ARE AN AGILE & FLEXIBLE COMPANY
111. how to deal with it?
• only certainty =….
YOU LIVE IN A WORLD OF CONSTANT UNCERTAINTY
112. how to deal with it?
ALWAYS PLAY ON THE OFFENSE INSTEAD OF THE DEFENSE
113. how to deal with it?
NEVER EVER DISRESPECT NEW OR SMALL PLAYERS
114. how to deal with it?
BALANCE
source: digital transformation, Jo Coudron
115. how to deal with it?
TAKE HOME MESSAGE
source: digital transformation, Jo Coudron
The Great Wave off Kanagawa, by Katsushika Hokusai
is one of the best recognized works of Japanese art in the world It depicts an enormous wave threatening boats off the coast of the prefecture of Kanagawa
internet, social media, new technologies, P2P platforms, peer reviewen,
4) instant reactie, kan wereldwijd snel
it is not necessary to own a car, if you can use it, why not?
dutch professor in transition economy
dutch professor in transition economy
let us not be naive, they get sponsored as well
https://www.youtube.com/watch?v=CPvbIoqWQkY&list=PLtSMh3a6aOtcgfrApsFDlqBwqyPBdrEgg
Thomas Rooselaer
peer = equal, same level
wikispeed: people create a new car
you have no certainties
in 2006 many people were laughing when Twitter was launched….. did they know?