190507 aim disrupt 60 min ai - terry jones•digital/free •digital
TRANSCRIPT
Disruption
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governments www.tbjones.com
Long limo rideI was
going to LAX
Can you review my website? So I took a look
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Way too many words!
But it didn’t have“I want them
to call!”Call forPrice!
Call forPrice!
Call forPrice!
Wasn’t Mobile
Couldn’tBook
“I want themto call!”
Simplify He didn’t need to change the core product
Create another website
San Clemente OnLine Limo!
Let the two sites compete
“If you don’t change I don’t
think you’ll make it to retirement.”
SILENcE
Then Suddenly”
“How did you go bankrupt?”
“Two ways. First gradually
Ernest HemmingwayThe Sun Also Rises
Disruption InnovationTwitter@terrellbjones
Everything is great!
Tremors
“Neither RedBox nor Netflix areeven on our radar screen in
terms of competition”
CEO Blockbuster2008
Peak Employment 60,00010 Years later ZERODISRUPTION!
SomeLeaders
areworried
Are things moving faster?
Telephone took 75 years to reach 50 million users
Pokemon Go took 15 Days! It is a difficult time to be a leader
Speed of change
Information
Overload
Lack of
certainty
Talent
Twitter:Terrellbjones
I can’t take more… What if disruption IS coming?
Who is the enemy? Not Godzilla but…
3,000-4000 Startups per year! Cincinnati 1848
Self Driving
Cars
Insurance
Hotels
Parking
RealEstate
Deliveries
Auto Repair
Billboards
Healthcare
Traffic Cops!
Truck Drivers
Who & What is likely to disrupt you
What you can
do about it!
6 7
3 421
Forces of disruption
1098
5
I started my career as a receptionist in a travel agency 47 years ago
Systems of RecordI.T. Phase 1 Systems that
• Added up sales
• Made reservations
• Created the financials
5mb Disk
Connectivity
The Internet
Information found its
FREEDOMInformation everywhere
Flowed
one
way
Information
Connectivity = Opportunity DISRUPTION!
• By the song• Digital/Free• Digital/<$
• New Model
• Digital/<$
Systems of engagementI.T. Phase II
Users create information
InformationMade
it flow two
ways
People startedwriting
And selling
and rating
Rich BartonFounderExpedia
GlassDoorZillow
“If it can be rated it will be rated”
Buyer experiences are shared
DISRUPTION!
• Sharing• Free/Sharing• Sharing/Cheap• Free/Sharing
• New Model
• Free/Ad Based
DisruptionDISRUPTION!
Mobility7.3 Billion Cell Phones
5 Billion Network Nodes
50% of Priceline’s bookings =
Mobile
•20GB speed •Reduced latency
•Internet of skills •High motion mobility •Autonomous vehicles
Torrent
Stream
Big Data
90% of the world datacreated in the last three years
Where to put it?
CloudInstead of our own
Shared
Why is cloud important?
• Instantly available • Insanely inexpensive • Infinitely scalable
Game Changer
It’s why two guys in a startup Have as much computing power as a Fortune 500 company!
80% UnstructuredComplexity = Opportunity
Systems of insightI.T. Phase III
Systems that can make senseof the data in which we are
drowning
A. I.
Learning Systems
Tesla has 1.3 BILLION miles of learning!
24x7x365 Going to Class
AI - Sales & Marketing Personalization
Increased Personalization = $>
Minnie Driver
AI as curator Computer Vision
Better than humans
IncreasedConversion 15%
VR vs AR
AI is the new UI
How products are sold
A. I. How products are supported How processes are automated
Intent
© 2014 – 2016 WayBlazer Inc. – Strictly Confidential – www.wayblazer.com
Sothatuserinterfacescanevolve
Theystillaskyou“Where”and“When”
Butyou’rethinking“Anisland,withmyfamily,withgolfand
kidsactivities”
Richer Output
Man
WomanSunset
Pool
Romantic
reviews and descriptions extracted concepts + modifiers
©2014-2017WayBlazer,Inc
My family just got back from a 6 night trip there and the hotel was incredible. My boys loved the pool complex with a lazy river ride while my wife and I spent the time at the swim up bar. My wife really loved the personal time she got at the spa while I took the kids to the nearby lake for some fishing and hiking. The staff was friendly and the rooms were large and comfortable. I would strongly recommend this property to another family.
derived intelligence
Watersports
Outdooractivities
Family
Pool
LazyRiver
fishing
Hiking
Spa
Better Answers
Heaven onEarth
Insight
Tennis
Wine
Spa
Evidence
Evidence Perfect Selection
2 bedroom home near downtown with great yard
“Great back yard” T. K. Certified Guest
Average travel searchervisits 38 Sites!
The biggest disruptor
Amazon Echo
200 Million by end of 2019
Many Choices
What will it cost to be the only one?
Very Soon
Double Digit Conversio
n Increase
Predictive Analytics Predictive Analytics
Predictive Failure Adaptive Diagnostics
Condition Based Maintenance
Convergenceof
Technologies
I.O.T.
75 Billion by 2025
I.O.T. Examples
Machine LearningAnalyticsCloud
IOT Technology Chain
ConnectivitySensors
John Rossman The Amazon Way on IoT
From Sensing To MeaningTo ActionAC Shutdown
Section 1`
Backup ON Service
Dispatched
Free and a 5% discount
Platform
Robotics Robotics
RPA (Robotic Process Automation)
Additive Manufacturing
90% of hearing aids 3D printed
In 4 years!
Jet Engine Fuel Nozzle Part Supply Chain
Manufacturer Benefits• Cheaper
• Lighter (25%)
• Stronger (5X)
• Faster (1 Year Faster to Market)
• No Inventory
• Fewer Sub Parts to Maintain (-20 Parts)
• Etc
Local 3d
Parts
Insurance
Forwarder
Warehouse
Sub Assembly
Assembler
Container Ship
Long Haul Truck
Materials Suppliers
Customs Broker
Truck Drivers
Better to be the disruptor!Forces of disruption
“If you don’t like change, you’re going to like irrelevance even
less.”
Technique
Technologyfollows
New Business Models
owns no vehicles
develops no content
has no inventory
owns no real estate
Tom GoodwinTechCrunch
Own the
edge
Location, Location, Location Edge is where the customer is
Apps Rule the Edge
20% Increase in Order
Size vs Counter!
Amazon Dash
Diagnostics! Integration at the Edge
Jamie DimonJ.P. Morgan Chase
“Silicon Valley is coming!”
“The battle is decided if the startup gets the distrubution before the incumbent gets the innovation”
James JonesRetail Analyst
RBC
“Your margin is our opportunity”
OPAOther People’s Assets
Amazon Traditional
SellBook
BillCollect
MarketBook
FindClients
Used Books
BuyBook
SetPrice
StoreBook
ShipBook
FinanceInventory
SetPrice
FinanceInventory
BuyBook
Store Book
ShipBook
Add amazingsoftware Set
PricesFind
Clients
Dispatch Bill &Collect
OwnCars
LicenseCars
ServiceCars
Traditional Limo Company
EnforceStandards
Hire Drivers
OwnCars
LicenseCars
ServiceCars
Marketenforcesstandards
Driversfind
them
Add amazingsoftware
Traditional Hotel Brand
FindClient
FindHotels
HireStaff
ManageProperty
ProvideSecurity
Takereservation
SetPrices
EnforceStandards
Bill &Collect
HireStaff
ManageProperty
ProvideSecurity
Hotelsfindthem
MarketEnforcesStandards
SetPrices
Bill &Collect
Add amazingsoftware
Less Capital
More Speed
But you have.... And perhaps you are not..
“There isNO step two!
Don’t let some kid in the Valley... Assets & Edge
What’s the new model?
ONIOutcomes Not Iron
Outcomes
Hold it
Back?
Hide? Instagram raised$1 Billion
The day Kodak went bankrupt
Kodak invented thedigital camera!
From one perspective: A disruption From another perspective: An innovation
InnovationDisruption
You can act!
What should I do no matter what?
What’s holding
youback?
50% of executives are dissatisfied with
the state of innovation in their company
Boyd & Goldberg“Inside the box”
Check the mirror Risk
v
Every company founded by a ri
sk taker
Would your company approvean idea as radical as the one that
founded your company?
I Started My Career As A Receptionist in a travel Agency - 47 years ago
Vega Travel
1st Startup
2nd Startup
Sold to American Airlines
• CIO
• VP Computer Ops
• VP Applications
• Asst VP Product
• Asst VP ADS Div
• Director
18 Years AA
Big Risk
• Boards
• 9 startups
• 3 went public
• 7 public companies
• 2 non profit
• Consulting company
• Venture Capitalist
• Speaker
• Author
Recently all in...again!
Ran outta money
`
75% of venturebacked startups
FAIL
<50% make itpast 4th birthday
Operating at full throttlevTake the first risk!
Prototype
3d PrototypeAI Web Test
“Do it right the first time!”
Watch the films! Check the mirror..again
Sentries Listen To Your Customers!
• The Phone Booth Is A Symbol• Every person in every job
required to listen to two customer calls per month
• Must discuss root cause at staff meeting
Paul English, CTO Clay in the customer’s hands
60,000,000 Downloads
Behavior just like the desktop!
Come together
Why can’t I buy a concept car?
Clarity
Chained to an old model?
We’ve ALWAYS done it this way
We’ve NEVER done it
that way
“What is dangerousis not to evolve”
Jeff Bezos
“Established organizations view disruption as a threat”
How could we do that?
You don’t have to change the world to cause disruption
Do it yourse
lf
Went public
$1.2bbl
Choice
Sold fo
r $1.8 Bbl
Bundling
Sold fo
r $50 m
m Apple didn’t invent
They made them better
TheirInnovation Your
Disruption
You can act!
Stop being disrupted - Innovate!
Recreateimagine Chuck Hull
Customiza
tion becomes the norm
Reimagine
Radio Controlled AirplanesDrones
Reimagine
“The last 25 years were all about who could build things the cheapest.
The next 25 will be all about who can make things the smartest”
Antoine van Agtmael
A story about change
$300,000
These kids never met!The game was built
entirely online and through Internet Messenger and Chat
A Virtual Company
Funding Kickstarter
Office Apartments
Team Crowdsource
Customers Social/Search
IT BYOD/Cloud
He’s not a failureOnly sold $400,000
“Fail again. Fail better.”
Samuel Beckett
Lessons learned
•At your favorite online bookstore
• Paperback or Ebook
Get slides at www.tbjones.com
Coming This summer!
6 7
3 421
Forces of disruption
1098
5New Business Models
InnovationDisruption
Get slides at www.tbjones.com
Get slides at www.tbjones.com
What’s holding
youback?
What’s the new model?
Get slides at www.tbjones.com Get slides at www.tbjones.com
How much can things change in the space of one career?
Get slides at www.tbjones.com
1970
2015Operating at full throttle
“Your conscience shouts, ‘Here’s what you should do,’
Steven Spielberg
while your intuition whispers, ‘Here’s what you could do,”
You think you have a tough job?
Mobile
6
5
3
4
2
1“You fall, you die!”
Carl Wallenda
The opportunities are out there It won’t be easy!
But you’ve got the tools Change is inevitable