disruption and digital disruption 2016

DISRUPTION & DIGITAL TRANSFORMATION

8TH, 9TH & 10TH MARCH 2016

8TH INTERNATIONAL WEEK

digital transformation

• Digital transformation or disruption→ some cases

• Modeling

• How should organizations deal with digital transformation?

CONTENT

A WAKE UP CALLTREND

S

trends

drivers

models

response

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

trends

PHOTOGRAPHY

trends

MUSIC

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwiHlMWL0qnLAhVM2hoKHW8ODPoQjRwIBw&url=http://www.theguardian.com/music/tomserviceblog/2014/jan/10/classical-cd-shops-disappearing-new-york-london&bvm=bv.116274245,d.d2s&psig=AFQjCNHI_eU2_RoHVxNRPCvqOV2Pkjak7w&ust=1457270569548190

trends

FILM

trends

NEWSPAPERS

trends

BOOKSHOPS

trends

BANK LOAN

trends

SHOPPING

trends

GROCERY

trends

• generation Z

NEW CUSTOMER

trends

BUYING LENS

trends

TRAVEL

http://www.google.be/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwi_7-jwv6LLAhWiCpoKHQdPAEsQjRwIBw&url=http://www.theguardian.com/travel/2008/feb/10/travelnews&bvm=bv.115339255,d.ZWU&psig=AFQjCNFUvVUofsC5MZyVJboP7DP_06POdA&ust=1457025168069535

trends

PAYING CASH

trends

CAR

trends

TAXI

Klik op het icoon of op de rand van het kader om een afbeelding toe te voegen> tabblad invoegen> afbeelding of online afbeeldingVia ‘crop’ kan je de afbeelding binnen het fotokader veranderen van positie (fit or fill). De afbeelding kan ook gedraaid of gespiegeld worden binnen het fotokader.Indien je de foto delete, dien je de nieuwe foto terug op de achtergrond te plaatsen

trends

ALIBABA STORY

trends

• 95 years

• 685,000 rooms

• 92 countries

• $ 24 billion

• 6 years

• 1 000 000 accomodations

• 190 countries

• $ 13 billion

HILTON GROUP AIRBNB

trends

ENERGY

trends

• Do you recognize this building?

• Chrysler Building, Manhattan, NY

• represents power → car companies→ oil industry

ARCHETYPE ‘OLD’ BUSINESS

trends

• and this building?

• headquarters Apple, Cupertino

ARCHETYPE ‘NEW’ BUSINESS

trends

• and this one?

• new headquarters Amazon, Seattle

• these are the new power bases

ANOTHER EXAMPLE

trends

• What’s the next business that will be disruptive according to you? ….

GROUP DISCUSSION

DIGITAL DISRUPTIONDRIVER

S

trends

drivers

models

response

drivers

• What are the underlying causes for thisdisruption?1. …2. …3. …4. …

GROUP DISCUSSION

drivers

WAVES OF DIGITAL DISRUPTION

source: digital transformation, Jo Coudron

1995• music• photography• video rental

2010• print media• TV• travel• HR

2016• banking• healthcare• automotive• retail• education• telco

2020• all safe havens

will be subject to digital disruption

drivers

BUILDING BLOCKS

con-necte

d

peerreviewing

online market place

new technologies

drivers

THE SPEED OF CHANGE


Klik op het icoon of op de rand van het kader om een afbeelding toe te voegen> tabblad invoegen> kies ‘afbeelding’ of ‘online afbeelding’Via ‘crop’ kan je de afbeelding binnen het fotokader veranderen van positie (fit or fill).De afbeelding kan ook gedraaid of gespiegeld worden binnen het fotokader. Indien je de foto delete, dien je de nieuwe foto terug op de achtergrond te plaatsen.

WEB 4.0

drivers

bron: Patrick Petersen: online mkt

drivers

• technological innovation→ social networks→ user friendly apps→ mobile devices→ online review systems

DRIVERS OF TRANSFORMATION (DOT’S)

drivers

• cost consciousness→ due to financial crisis→ world wide economic slow down

DRIVERS

drivers

• value shift→ younger generations think different about concept

→ access > possession (status) *→ 1 lawn mower for neighborhood

• sharing economy

DRIVERS

Klik op het icoon of op de rand van het kader om een afbeelding toe te voegen> tabblad invoegen> afbeelding of online afbeeldingVia ‘crop’ kan je de afbeelding binnen het fotokader veranderen van positie(fit or fill). De afbeelding kan ook gedraaid of gespiegeld worden binnen het fotokader.

drivers

SHARING ECONOMY

drivers

• growing concern about the climate

DRIVERS

drivers

• profit driven

• IP protected

• central management

• co-modification

• impact-driven

• open access, collaboration

• collective management

• co-notification

OLD WAY NEW WAY

drivers

… a disruption to not only certain sectors in the

market economy, but to the market economy as

central spine of the world’s socio-economic system

SCENARIO

drivers

this is not an era of change, but a change of era (Rotmans, 2014)

PARADIGM SHIFT

drivers

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

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

drivers

• breaking news

• in-depth analysis

• trends & lifestyle

• weather

• jobs

• sports

• etc….

WHAT IS THE ALTERNATIVE FOR…

https://www.google.be/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjWyZSK_qnLAhUCWRoKHR2cDWgQjRwIBw&url=https://twitter.com/twitter&bvm=bv.116274245,d.d2s&psig=AFQjCNGJDgGS_-1xGMUZBhZaIln14YXMGQ&ust=1457282386434264

drivers

• ‘APPification’

• small companies→ they do only 1 thing/app→ on a global scale→ (almost) for fee

IMPACT SMARTPHONE

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

drivers

• smartphone + app

• anything is on the tip of your fingers→ swipe→ click

• example→ Uber

INSTANT GRATIFICATION

drivers

• online banking

• online tax form

• online hotel booking

• online shopping

SELF-SERVICE

drivers

• AWS = amazon web service

• Pinterest, air BnB, Spotify

CLOUD-COMPUTING

drivers

• before: experts

• now all the intelligence is in your pocket

METAPHOR GATEKEEPER

drivers

• opinion→ film recension?→ friends on FB→ IDMB

WHAT DO YOU PREFER?

drivers

• article in magazine about a city trip?→ sponsored?

• opinion → friends Facebook→ TripAdvisor→ Blog *

WHAT DO YOU PREFER?

drivers

THE NETWORK WINS

https://www.youtube.com/watch?v=zntukv0MvpI



drivers

• fear → ‘off the network’→ no wifi

• at ease when→ full battery→ five bars

• constantly sharing→ we feed the network

GEN Z = EXTREMELY CONNECTED

drivers

CROSSMEDIA

Klik op het icoon of op de rand van het kader om een afbeelding toe te voegen> tabblad invoegen> kies ‘afbeelding’ of ‘online afbeelding’Via ‘crop’ kan je de afbeelding binnen het fotokader veranderen van positie (fit or fill).De afbeelding kan ook gedraaid of gespiegeld worden binnen het fotokader. Indien je de foto delete, dien je de nieuwe foto terug op de achtergrond te plaatsen.

drivers

drivers

• apps location based→ weather apps→ traffic apps→ restaurant apps→ tinder….

THE FUTURE IS MOBILE

drivers

FACEBOOK FOCUS ON MOBILE


drivers

WAITING FOR A JOB INTERVIEW


drivers

IN A (BORING) MEETING

drivers

NICE & COZY AT HOME

drivers

TOGETHER IN A RESTAURANT

Voeg eventueel een foto in. Klik hiervoor op het icoon of op de rand van het kader.> ga naar tabblad invoegen> kies afbeelding of online afbeeldingVia ‘crop’ kan je de afbeelding binnen het fotokader veranderen van positie(fit or fill). De afbeelding kan ook gedraaid of gespiegeld worden binnen het fotokader.

drivers

CONCEPT : VUCA

source: Peter Hinssen

drivers

•

https://www.youtube.com/watch?v=7OvL0-36ucc



drivers

• gamification

• internet of things

• wearables

• 3D printing

• quantified self

• robotics

• drones

• big data

• monitoring

MORE STUFF TO COME

drivers

3D REVOLUTION


drivers


drivers

• example Manhattan, NY

BIG DATA


drivers


drivers

https://www.youtube.com/watch?v=b9nDPWaOK4g



DIGITAL DISRUPTIONBUSINESS

MODELS

trends

drivers

models

response

business models

• share economy

CONCEPT P2P ECONOMY

business models

• so you can bypass an entire business

DEFINITION

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 applythis model to business models?

NETWORK TERMINOLOGY

business models

• centralized→ Mc Donalds decides→ Bpost

• decentralized→ Sapa = aluminum company→ Colruyt group

→ dreambaby

• distributed (P2P)→ Wikipedia→ Wikispeed *→ AirBnB→ Tapazz (car rental)

BUSINESS TERMINOLOGY

business models

• reality = hybrid models→ P2P→ centralized

• AirBNB→ takes a percentage

• Uber→ decides price strategy

REALITY = HYBRID MODEL

business models

• flagships→ Google→ Facebook→ Twitter→ Instagram

• where do they get the money?→ advertising

FREE MODEL

business models

BUSINESS MODEL CANVAS GOOGLE

business models

business models

• what is the concept of this model→ free→ premium

• examples?→ …..

FREEMIUM MODEL

business models

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

business models

business models

• social selling

• affiliate marketing→ bloggers

AFFILIATE MARKETING

business models

• concept shared ledger→ virtual → decentralized→ bookkeeping system

• examples→ bitcoin → but in the near future

→ mortgages→ passports→ gun licenses

BLOCK CHAIN

DIGITAL DISRUPTIONHOW TO

RESPOND?

trends

drivers

models

response

how to deal with it?

source: Digital transformation, Jo Coudron (book, you tube)


• digital disruption is real

• expect a smack in the face

A SMACK IN THE FACE


• who is going to be your→ uber→ airbnb→ Netflix→ zalando→ tesla→ …

A SMACK IN THE FACE


CREATE YOUR OWN DIGITAL TRANSFORMATION VISION

https://www.youtube.com/watch?v=8wGq0e_n3n4





CREATE DIGITAL LEADERSHIP



• 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



TRANSFORM ORGANIZATION PHILOSOPHY



CHANGE OF CULTURE



• rather than thinking about sharing markets, we need to think about creating markets!

SHARING OR CREATING?


• traditional structures → procedures→ rules→ budgets

• speed?→ slow

• goal→ keep business going

CLASSIC INNOVATION


• project teams→ small→ dedicated

• speed?→ agility→ flexibility

• think ‘out of the box’

• can even be threat traditional activities→ possible cannibalization

• example→ Google

NEW INNOVATION


• example : Microsoft employees

• company: between 10h - 14h and at home (skype business + office 365 +…)

NEW WORLD OF WORK


BUILD THE TRANSFORMATION FLEET


• study with humans→ max. of about 150 people→ if more people

→ more structures→ more rules (laws)→ more tools→ more processes

ROBIN DUNBAR STUDY


• make an educated guess….

DARWIN


• 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


• how can we explain the success of Uber?

THE CUSTOMER ALWAYS DECIDES


ALL THINGS YOU DO MUST START FROM A SUPERIOR EXPERIENCE


• customer centric

FROM NOW ON, YOU ARE AN AGILE & FLEXIBLE COMPANY


• only certainty =….

YOU LIVE IN A WORLD OF CONSTANT UNCERTAINTY


ALWAYS PLAY ON THE OFFENSE INSTEAD OF THE DEFENSE


NEVER EVER DISRESPECT NEW OR SMALL PLAYERS


BALANCE




TAKE HOME MESSAGE


QUESTIONS?THANK YOU FOR

LISTENING

disruption and digital disruption 2016

Education