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The Business Value of IT in Today’s Digital World QCON NY 2014 Joe Weinman joeweinman at gmail @joeweinman © 2014 Joe Weinman. All Rights Reserved

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Page 1: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

The Business Value of IT in Today’s Digital World

QCON NY 2014

Joe Weinman

joeweinman at gmail !@joeweinman

© 2014 Joe Weinman. All Rights Reserved

Page 2: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Competition Today

2@joeweinman Source: Nike.com

Nike FlyKnit Racer

Nike Zoom Kobe Venomenon 4

Nike Basketball Hyperdunk+

Nike AirMax C202 JW

Page 3: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Nike FlyKnit

3@joeweinman Source: Nike.com

Page 4: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Cloud 2020 JW

4@joeweinman Source: Nike.com

Page 5: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Nike Basketball Hyperdunk+

5@joeweinman Source: Nike.com

Page 6: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Does IT Matter??

6@joeweinman

Page 7: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Of course IT matters

7@joeweinman

Page 8: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Common !

Location-independent

Online

Utility

on-Demand

Quantitative Analysis of Clouds.

Source: Joe Weinman, Cloudonomics

8@joeweinman

Page 9: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Range of IT Value

© 2014 Joe Weinman. All Rights Reserved 9@joeweinman

Page 10: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Value Disciplines* + Digital Technologies = Digital Disciplines

10@joeweinman

*Michael Treacy and Fred Wiersema, The Discipline of Market Leaders

Customer Intimacy += Collective Intimacy

Operational Excellence += Information Excellence

Product Leadership += Solution Leadership

Traditional Innovation += Accelerated Innovation

Page 11: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Operational Excellence += Information Excellence

Page 12: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Information Excellence

12@joeweinman

Page 13: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved 13@joeweinman

Information Excellence

Page 14: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Source: SAP

Information Excellence

14@joeweinman

Page 15: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved 15@joeweinman

The Hollywood Organization

Page 16: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Product Leadership +=Solution Leadership

Page 17: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Range of Product Value

17

Incr

easi

ng D

iffer

entia

tion

• Core Benefit

@joeweinman

Generic

Expected

Augmented

Potential

• Undifferentiated Features

• Digital Intelligence

• Extensibility via API/Ecosystem • Adaptability via ML/AI • User Modifiability • Upgradability

Page 18: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

The Experience Economy

18

Commodities

Diff

eren

tiatio

n

@joeweinman

Source: Joseph Pine & James Gilmore

Profitability

Products

Services

Experiences

Transformations

Page 19: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Solution Leadership

19@joeweinman

Page 20: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Solution Leadership

20@joeweinman

Page 21: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Solution Leadership

21@joeweinman

Product / Family / Ecosystem

Network Cloud Services

Community / Partner Ecosystem

SocialPlatform Platform

Page 22: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Gamification

22

Source: Steve Sims, Badgeville

@joeweinman

Success

Social

Structure

Smart

Page 23: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Customer Intimacy += Collective Intimacy

Page 24: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Customer Intimacy

24@joeweinman

Page 25: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

From Transactions to IntimacyEn

gage

men

t

Scale

25@joeweinman

Transactions

Personalization Mass Personalization

Customer Intimacy Collective Intimacy

Page 26: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Collective Intimacy

26@joeweinman

Source: Netflix

Page 27: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved 27@joeweinman

Collective Intimacy

Page 28: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Traditional Innovation += Accelerated Innovation

Page 29: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Product Life CycleR

even

ue

Time

Introduction Growth Maturity Decline

29@joeweinman

Page 30: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Industry ProfitIn

dust

ry P

rofit

Time

Introduction Growth Maturity Decline

Lower Development Expenses

Higher ProfitTime Value Of Money

Lower Marketing Costs

Lower Forecast Risk

Higher Market Share

30@joeweinman

Page 31: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Accelerated Innovation

31@joeweinman

Page 32: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Open Innovation

Netflix InnocentiveGoldcorp

32@joeweinman

Page 33: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Accelerated Innovation

• Internal += External!• Closed += Open!• Static += Dynamic!• Salaries += Prizes!• Cash += Reputation!• Waterfall ! Agile!• Plan ! Pivot!• Coding ! Platform

33@joeweinman

Page 34: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Putting It All Together

Page 35: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Source: SAP

Putting It All Together

35@joeweinman

Information ExcellenceSolution Leadership

Collective Intimacy Accelerated Innovation

Page 36: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

© 2014 Joe Weinman. All Rights Reserved

Early in the Journey

36@joeweinman

Source: estfacts.com

Page 37: The Business Value of IT in Today’s Digital World€¦ · Competition Today @joeweinman Source: Nike.com 2 Nike FlyKnit Racer Nike Zoom Kobe Venomenon 4 Nike Basketball Hyperdunk+

Thank You

joeweinman at gmail !@joeweinman

© 2014 Joe Weinman. All Rights Reserved