Digital Strategies: Why is this on top of the C-level agenda?

Information about Digital Strategies: Why is this on top of the C-level agenda?

Published on October 12, 2017

Author: eteigland

Source: slideshare.net

Content

1. Why is this on top of the C-level agenda? October 2017

2. Halloween in Nashville, 1974 2016

3. FUNDAMENTAL SHIFT IN STRATEGY MOVING FORWARD INCUMBENT BUSINESS MODELS

4. If the rate of change on the outside (of an organization) exceeds the rate of change on the inside, the end is near.... -Jack Welch

5. Digital is the main reason just over half the Fortune 500 companies have disappeared since the year 2000. -Pierre Nanterme, CEO Accenture, 2016 Yet..Digital disruption has only just begun.

6. Digital penetration has only just begun http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-case-for-digital-reinvention#0

7. Digitalization pressures revenue and profit growth http://www.mckinsey.com/business-functions/digital-mckinsey/our-insights/the-case-for-digital-reinvention#0

8. All our knowledge is about the past, but all our strategic decisions are about the future. What we don’t know we don’t know Outside our comprehension What we know What we know we don’t know Conway 2003

9. Thx to R. Wieselfors, Ericsson for photos

10. Thx to R. Wieselfors, Ericsson for photos

11. “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.” - Bill Gates, The Road Ahead, 1996

12. 2015

13. H.I.S. Co. has two Hen’na Hotels run entirely by robots and plans to open 100 hotels. Food deliveries Check-in Automated Tasks Concierge Porters Cleaning Lawnmowing Room Service Robot Trashcan Robot fish

14. People • “Net generation” • 24x7 “mobile” workforce • Knowledge via MOOCs • Sharing not owning • Sustainability • Gigs and not jobs Technology • Broadband/wifi • Smart phones • Cloud • Internet of Things • Data/ML/NN • Autonomous vehicles • Smart Robotics • VR/AR/Holography • 3D printing/ALM • Blockchains Open Source IP • Software • Hardware • Physibles Convergence of….. Finance • Microlending/microfinance • Crowdfunding/equity/P2P • Cryptocurrencies • Blockchains • Mobile money and payments • M2M and R2R payments

15. http://marketrealist.com/2016/01/fourth-industrial-revolution-need-know/

16. Evolution of transportation http://www.slideshare.net/MarketRevolution/shsu-sharing-economy-collaborative-consumption

17. Technology replacing Energy and Banking http://www.visualcapitalist.com/chart-largest-companies-market-cap-15-years/

18. Intangible assets 87% of S&P 500 Market Value

19. The New Multinationals CGE Platform Database with Quid visualization, 2015 Over $3 trillion in firm market cap Selected platform companies Emerging platform clusters 2016 Parker & Van Alstyne, with Choudary – licensed under Creative Commons Attribution-ShareAlike 4.0 International (CC BY-SA 4.0).

20. FIRM FOUNDED EMPLOYEES MKT CAP BMW 1916 122,000 $56B UBER 2009 7,000 $62B MARRIOTT 1927 200,000 $32B AIRBNB 2008 5,000 $21B WALT DISNEY 1923 185,000 $172B FACEBOOK 2004 15,000 $369B WALMART 1962 2,300,000 $206B ALIBABA 1999 36,000 $241B Adapted from Parker & Van Alstyne, with Choudary, 2016, and updated January 2017 Something fundamental is changing

21. Design thinking turns needs into demand 22 IDEO “Jobs to be done” – Clayton Christensen

22. AirBnB sports experiences https://www.airbnb.com/experiences/233

23. Pipeline – Traditional linear value chain Supply-side economies of scale

24. Platform-based business models Demand-side economies of scale

25. Platforms leverage Network Effects Value rises as more people use the platform

26. Interpersonal trust Institutional trust - brand Institutional trust – platform Enabling trust between strangers 1rst 2nd 3rd Changing nature of trust

27. Exploitation Improving existing value creation activities Exploration Developing new value creation activities Adapted from March 1991

28. Banking is essential, but banks are not. Bill Gates

29. From the north of Sweden

30. Crowd equity financing enabling new entrants

31. Elio Motors becoming a reality https://www.eliomotors.com/

32. Community platform Hierarchicalfirm VS E.g., Ford ~ Created by employees within organizational boundaries E.g., Local Motors ~ Created by community collaborators regardless of affiliation Teigland, Di Gangi, & Yetis 2012 The Flipped Firm: New model of value creation?

33. “Local Motors is the place for people to create influential vehicles together.” • 100xs lower capital cost • 5xs faster production

34. Local Motors to print 3D cars in its micro-factories

35. Olli - 3D printed autonomous vehicle with IBM Watson https://www.3dprintingbusiness.directory/news/local-motors-prepares-serial-production-ollie-3d-printed-smart-vehicles/ From 25-30,000 parts to 50 parts

36. Point of Demand: Local and mobile factories Integrating offline and online communities Arizona Maryland Tennessee Germany

37. No one owns everything, Everyone owns something, all resources reside in networks. Adapted from Lévy 1997Image: Krebs Access, not ownership

38. FUNDAMENTAL SHIFT IN STRATEGY MOVING FORWARD INCUMBENT BUSINESS MODELS

39. MANY INCUMBENTS HAVE UNLOCKED THE VALUE OF DIGITAL…

40. Omnichannel Business -”Life events” -Own customer relationship -Multiproduct, multichannel -Integrated value chain e.g., ING, Schindler Supplier -Products/services -Sell through another -Low-cost producer -Incremental innovation e.g., Sony Ecosystem Driver -One stop destination -Branded platform -Great customer experience -3rd party plug’n plays -Matchmaker e.g., Amazon, John Deere Modular Producer -Ecosystem plug’n play -Niche plug’n play -Adapt to ecosystems -Continuous innovation e.g., Paypal MIT study: Four incumbent digital business models Weill & Woerner 2015 Needs Life Events Demographics Purchase history Control over decisions on brand, price, quality, etc. * 32% Higher growth * 27% Higher profit margin

41. Betting on “The winner takes all” Immelt’s goal: “A top 10 software company” by 2020 • Predix: USD 1 bln investment • Open-source model, e.g., Android • 19,000 developers + 3rd party developers • Software building blocks (e.g., blockchain)

42. CDO From elevators and escalators to “Moving humanity digitally” -Digital Officer

43. Many new data platforms emerging yet the winner will be the one that turns insight into customer productivity and efficiency

44. Separate unit with 17,500 software engineers and 160 data scientists Connects over 300,000 devices, e.g., wind turbines, buildings, trains Higher availability, improved performance and security, and decreased costs Increased ability to innovate products and services Connectivity Innovation Customer Outcomes Big data analytics Source/Adaption: https://www.siemens.com/digitalisierung/public/pdf/Sinalytics-and-Digital-Services-Presentation.pdf Know-how Siemens’ Sinayltics platform

45. B2B digital leaders: 5Xs more revenue growth than their peers B2B B2B2C Leadership • Commit to digital at strategic level • Create culture anchored on innovation and execution • Shake up organizational structure and metrics to support digital aspirations Digital operational excellence • Create consistent online and offline experiences • Enable and empower sales force through data • Improve insight and decision making through end-to-end connection of processeshttp://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/how-b2b-digital-leaders-drive-five-times-more-revenue-growth-than-

46. FUNDAMENTAL SHIFT IN STRATEGY MOVING FORWARD INCUMBENT BUSINESS MODELS

47. Exploitation Improving existing value creation activities Exploration Developing new value creation activities Adapted from March 1991

48. Crowdfunding of revenue generating machines (IoT assets) with blockchain technology https://mybit.io/

49. http://marketrealist.com/2016/01/fourth-industrial-revolution-need-know/

50. Decline in routine jobs, even after recovery H. Siu (Univ of BC) & N. Jaimovich (Duke Univ), 2015

51. All jobs have been created within non-routine Food service Housekeeper Programmers Data scientist Admin Assistant Manufacturing

52. Jobs that did not exist in 2006  App developer  Social media manager  Uber driver  Driverless car engineer  Cloud computing specialist  Big data analyst/data scientist  Sustainability manager  YouTube content creators  Drone operators  Millennial generational expert https://www.weforum.org/agenda/2016/06/10-jobs-that-didn-t-exist-10-years-ago/

53. Trading one job for a number of “gigs”…

54. Rethinkery enables the AI CEO through “work looking for people” on Upwork

55. “Flash organization” created with Foundry staffing Upwork freelancers Valentine et al., 2017, http://hci.stanford.edu/publications/2017/flashorgs/flash-orgs-chi-2017.pdf

56. Knowledge through MOOCs (Massively Open Online Courses)

57. Self-employed by Firms

58. Rethinkery enables the AI CEO through “work looking for people” on Upwork

59. From offices to…

60. “Third Places” and co-working spaces

61. Sharing economy for workspace? http://www.bbc.com/news/business-35246320

62. Hoffices – a Swedish concept gone global

63. Increasing forces for local community and circular economies

64. Global DIY microfactory networks enable circular economies

65. Digitalizing distributed ownership with no central actor other than a computer network?

66. Smart cities and microgrids Brooklyn Microgrid aims to create a local, neighborhood- powered grid that could operate in parallel to the main grid. One of the appeals of a microgrid is its potential to provide electricity to homes even if the main grid goes down. -NPR

67. http://marketrealist.com/2016/01/fourth-industrial-revolution-need-know/

68. No one owns everything, Everyone owns something, all resources reside in networks. Adapted from Lévy 1997Image: Krebs Access, not ownership

69. The role of universities?

70. Digitalizing the Investor network

71. Tremendous progress

72. Knowledge through MOOCs (Massively Open Online Courses)

73. What progress is this? https://sv.wikipedia.org/wiki/Handelsh%C3%B6gskolan_i_Stockholms_historia

74. Changes in the top 10 skills

75. https://www.wsj.com/articles/how-to-manage-robots-and-people-working-together-1433301051

76. Learning soft skills

77. Facilitating innovation at a makerspace at Georgia Institute of Technology https://smartech.gatech.edu/bitstream/handle/1853/53813/a_review_of_university_maker_spaces.pdf

78. Enabling problem-based learning Asmen Gül <[email protected]>

79. Exploitation Improving existing value creation activities Exploration Developing new value creation activities Adapted from March 1991

80. If replace 1000 workers with one more robot Data from 1990 to 2007 in the USA 1) Employment to population ratio down by 0.18-0.34 PPt 2) Wages down by 0.25-0.50% D. Acemoglu (MIT) & P. Restrepo (Boston Univ), Robots and Jobs: Evidence from US Labor Markets 2017, Natl Bureau of Economic Research Working Paper.

81. • Automation • Globalization • Rising productivity of select few -Ryan Avent Increasing social responsibility An increasing abundance of labor

82. “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.” - Bill Gates, The Road Ahead, 1996 Scenario Thinking

83. Robin Teigland [email protected] www.slideshare.net/eteigland @robin.teigland If you love knowledge, set it free… If you like this presentation and would like to contribute to our research, we accept bitcoins: 14hs4JbnQLXE87GGzu84uXGaspmxmnLpwC. Thank you!!!!!

Related presentations


Other presentations created by eteigland

Overview of Bitcoin - Sweden
12. 03. 2014
0 views

Overview of Bitcoin - Sweden

2008 12 03 VW Panel At INSEAD
23. 01. 2009
0 views

2008 12 03 VW Panel At INSEAD

Presentation May 30
14. 01. 2008
0 views

Presentation May 30

Global Virtual Teams Teigland
16. 04. 2008
0 views

Global Virtual Teams Teigland

Sse Mba Mba Live
22. 09. 2007
0 views

Sse Mba Mba Live

Crowdfunding - Sweden and Trends
25. 03. 2014
0 views

Crowdfunding - Sweden and Trends

Third Industrial Revolution
18. 08. 2014
0 views

Third Industrial Revolution

The Future of Digital Currencies
01. 10. 2014
0 views

The Future of Digital Currencies

Virtual Worlds Overview
12. 11. 2014
0 views

Virtual Worlds Overview

Bitcoin, Blockchain, and IoT
09. 03. 2015
0 views

Bitcoin, Blockchain, and IoT

Sharing Economy May 2015
04. 05. 2015
0 views

Sharing Economy May 2015

IKT Ekosystem i Stockholm
12. 09. 2015
0 views

IKT Ekosystem i Stockholm

FinTech in Stockholm
14. 04. 2016
0 views

FinTech in Stockholm

Swedish Startup Phenomenon
11. 05. 2016
0 views

Swedish Startup Phenomenon

Stockholm Fintech
26. 04. 2016
0 views

Stockholm Fintech