Disrupting Digital Business: Ready for the Post-Sale, On-Demand, Attention Economy?

Disrupting Digital BusinessCreate an Authentic Experience In The P2P EconomyFALL 201 5 - 2 016

R “ RAY ” WAN G (@RWA N G0)

PR IN CI PA L A NA LYST & CHA IRMAN

@rwang0 #DisruptingDigital

52% of the Fortune 500 firms since 2000 are gone

Digital creates winner takes all marketsOverall Market Share Percentage of Profits

”Welcome to the post-sale, on-demand, attention economy!" (2014) @rwang0

Disrupt Or Be Disrupted

Incremental innovation is table stakes and expected in the market

The middle is a bad place to be in digital

10 Lessons Learned From Disrupting Digital

Digital disruption is more than just a technology shift. It’s about transforming business models and how we engage.

Tech convergence powers digital disruption

Mobile Social Cloud Big Data IOT

3D Printin

Design Thinking Inspired User Experience

Social creates new verbs and experiences that bring people and networks together

Twitter – I need to pee

Facebook – I pee’d

Google+ - More pee in circles

FourSquare – I’m peeing here

Pinterest – My pee scrapbook

Instagram – My pee in sepia

LinkedIn – Hire me to pee

Path – Watch me pee privately

You Tube – Watch me pee

Vine – Watch my pee loop

SnapChat – I have no proof I pee’d

Jelly – Does this look like pee?

What’s app – I told you I pee’d

Periscope– Watch me pee live

But this is so 2009…

Mobile Social Cloud Big Data Unified Comms

Disruptive tech trends have advanced to

IOT 3D Printing Robotics

AI/ Synaptic Neural

Networks

Block Chain Tech

Uber incorporates five key pillars

We move from selling products and services to keeping brand promises in an attention economy.

Digital accelerates business model transformation• Product companies give away product for

service revenues.• Service based businesses sell experiences at

varying price points and service levels.• Experience based businesses selling

business models• Business model companies sell peace of

"You're not competing with another company, you're really competing for time and attention" (2010)

New unit cost pricing models enable disruptive business models to thrive.

From all you can drink…. to by the sip

Data is the foundation of digital business. Every touch point, every click, every digital exhaust is relevant insight.

Data and content explosion goes exponential

90% of data created in last 2 years 2014, 1 year 2015,

1 sec 2020

80 Billion sensors in devices by

100M viral connections

per minute by 2020

If 20 % of your revenue is not an insight stream by 2020, you won’t have a digital biz model

The future is big data business models built on insight

Insight based differentiation

Drive demand

Create new service offerings

Improve c-sat

Drive lower cost models

Insight brokering

Raw information

Analysis and insights

Benchmarking

Insight based business platforms

Marketplaces

Deal making

Advertising

You can be the content, the network and the arms dealer. Today’s digital winners vertically integrate all three in network economies.

Four companies control the network from content and commerce to consumer device

VS.Videos

VS. ShippingVS.Commerce

Cloud Computing

MediaVS.Devices

Digital artisans emerge to humanize digital across the organization

GE Power knows when a transmission line will go down 8 to 10 days before it happens

“Design thinking is a methodology to unlock solutions to questions you never would have asked”

People to people (P2P) is about direct connections and digital scale

Tesla changed the rules of low volume production, eco luxury & direct to consumer

Design for people segments of one

Can you support a human segment of one and deliver on mass personalization at scale?

Digital delivers on mass personalization at scale

Analog Systems

Pre 1950’s

Reliability and scalability

Massive machine scale

Sweat based

Limited

Governed

Physical locations

Word of mouth

Dumb devices

Assembly line technologies

Elements

Design point

Challenge

User Exp

Comm Style

Impact and reach

Info mgmt

Intelligence

Examples

Transactional Systems

1950s+

Continuous improvement

Massive computing scale

Computing based

Broadcast dictatorial

Just in time

Departmental/ corporate silos

Highly structured

Hard coded

Payroll, ERP, CRM

EngagementSystems

Sense and respond

Massive social scale

Interactive

Conversational

Real time

Interconnected

Loosely structured knowledge

Deterministic business rules

Social and collaboration

Mass Personalized

Systems2015+

Intention driven

Massive individual scale

Personalized

Sentient

Space time contiuum

P2P networksSelf aware embedded

knowledgePredictive

Decision support, VRM

ExperientialSystems

Agile and flexible

Massive contextual scale

Bionic

Role tailored

Right time

Segmented value chains

Immersive streams

Probabilistic pattern based

Ad networks, gamification

Five generations of people by digital proficiency, not age

5 generations of digital people not by age but by digital proficiency

Digital Proficiency

1. Digital Natives

comfortable in engaging all digital channels 2. Digital

Immigrantscrossed the chasm into the digital world, forced into engagement with digital channels

3. Digital Voyeurs

Recognize the shift to digital but not ready to be active yet themselves

4. Digital Holdouts

Resisting the shift to digital, ignoring the impact

5. DigitallyDisengaged

Understand digital but avoiding

engagement on purpose, often for

privacy reasons

Disrupting Digital Business

“Digital Darwinism is unkind to those who wait” 2010 (@rwang0)

The reality of how we allocate is set up for margin

Strategic differentiation

Revenue growth

Operational efficiency

Regulatory compliance

Growth requires the flip in the pyramidBrand

Strategic differentiation

Revenue growth

Operational efficiency

Regulatory compliance

In the new world IT – business collaboration is key to digital success

Simple

Scalable

SexyBusin

entsSafe

Secure

Sustainable

BusinessModels

Value Networks

Org Structures

Disruptive Technology

Business runs hard as IT scales in step function

Business requirements

IT scaling

Wave 1 Wave 2 Wave 3 Wave 4 Wave 5

Five steps from data to decisions to digital

Design new experiences and outcomes

Develop a culture of digital DNA

Apply new business models and technologies to existing infrastructure

Move from gut to data driven decisions with planning, consolidation, and control

Co-create and co-innovate with new partners

Join me and other innovators at

Join me and other innovators atConstellation’sConnected EnterpriseThe Ritz Carlton, Half Moon Bay, CA | October 26-28, 2016 |

www.constellationevents.com

R “Ray” Wang+1.650.918.6619R@ConstellationR.com@rwang0www.raywang.orgwww.ConstellationR.com

Thank you. Any questions?

www.constellationR.com

www.constellationR.com

Disrupting Digital Business: Ready for the Post-Sale, On-Demand, Attention Economy?

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