DIGITAL DISRUPTION. IT’S NOT COMING… IT’S … · PRE-EMPTIVE DIGITAL DISRUPTION ... reduce...

TECHNOLOGY IDEAS EXCHANGE PROGRAM 11 AUGUST 2015 MELBOURNE

William ConfalonieriChief Digital Officer

Deakin Universitywconfalonieri @ LinkedIn

DIGITAL DISRUPTION. IT’S NOT COMING… IT’S ALREADY HERE.

Content

① Understanding the disruptors

② Impact on Financial Services and Super

③ The Quest for the Digital DNA

④ The new IT Leader

Content

① Understanding the disruptors

② Impact on Financial Services and Super

③ The Quest for the Digital DNA

④ The new IT Leader

Image credit: science.nationalgeographic.com

DIGITAL: MASSIVELY DISRUPTIVE TIMES AHEAD

TECHNOLOGY DRIVERS

THE AGE OF IMPATIENCE

1. Always on

2. Speed and ease

3. zero friction

4. Rapid take-up

CULTURAL DRIVERS

DIGITAL INNOVATION IMPERATIVESMILLENNIAL expectations

1. Beautiful and usable

2. Personalised and optimised

3. Consistent and seamless

4. Hyper social

5. Natural, emotional interfaces

GENERATIONAL DRIVERS

UBIQUITOUS TECHNOLOGY

1. Hyper connectivity

2. ‘Mobile everything’

3. Context-aware, location-aware

ENVIRONMENTAL DRIVERS

DISRUPTED MARKETS & SECTORS

“If the rate of change inside an institution is less than the rate of

change outside, the end is in sight.” - Jack Welch

Chairman and CEO of General Electric. During his tenure at GE, the company's value rose 4000%

11

Deloitte Digital. © 2014

Extinction Street is filling at fair pace…

Many waves of disruption

Collaborative Economy

3D PrintingManufacturing, supply chain and

retail disruptions

Holoworld

Driverless vehicles

Content

① Understanding the disruptors

② Impact on Financial Services and Super

③ The Quest for the Digital DNA

④ The new IT Leader

Demand for: • extremely personalised service• customised information, education and advice• memorable and simplified digital experience

Vanilla service would no longer suffice

Pressure Points

A financial Service Organisation is vulnerable to disruption if it suffers of:

• redundant intermediaries• limited access• broken trust• wasted assets• complexity

Vulnerabilities

• Streamlined Infrastructure • Automation of High-Value Activities• Reduced Intermediation • The Strategic Role of Data • Niche, Specialised Products • Customer Empowerment

Factors Driving Innovation

Impact of the Shared Economy

Personal loans, currency exchange and insurance are three sectors that are vulnerable to high competition from

the collaborative economy.

• Banks will find some of their services being cherry-picked by the new tech giants: Apple Pay, Paypal,etc

• Research suggests that by 2020 smartphones will be more use to pay for things than credit or debit cards.

A new business for the Tech Giants

• Robo-advisors are improving accessibility to sophisticated financial management and creating margin pressure, forcing traditional advisors to evolve

• The scope of externalisable processes is expanding, giving financial institutions access to the new levels of efficiency and sophistication

Investment Management Trends

Some well funded new players in the Robo-Advising space:

• FutureAdviser• Betterment• Wealthfront• Financial Guard• SigFig• Jemstep• Nutmeg

Investment Management Trends

Content

① Understanding the disruptors

② Impact on Financial Services and Super

③ The Quest for the Digital DNA

④ The new IT Leader

ORGANISATIONAL IMPERATIVES

PRE-EMPTIVE DIGITAL DISRUPTION

• Businesses must reconsider their strategies in the context of this new digital landscape.

• Digital innovations are impacting core business processes, workforce enablement, delivery models, customer experiences and, most importantly, established business models.

• Organisations are being forced to pre-emptively disrupt from within, or risk being unprepared for and unable to respond to external disruptions.

• Technology enables the movement from digital transactions to digital relationships.• We can know and treat our students, on a massive scale,

as unique individuals again.

• This new level of potential digital intimacy represents an immense competitive advantage waiting to be realised …

• The challenge however is for organisations to pioneernew engagement strategies

External Trends

-Mobile centric applications

-BYOD mobile device-Device independence-Cloud services

PredictionsGartner predicts that by 2013 mobile phones will overtake PCs as the most common Web access device worldwide 1

Nearly half of all application and web hosting capacity will be on cloud-based architectures by 20152

Digital innovations offer opportunities to improve staff retention by providing more flexible working arrangements and allowing teams to use their own devices, such as smartphones, tablets and homecomputers. Companies can in turn reduce office space and travel needs, tap into new models – such as usingshared office facilities in locations where they have small teams – and explore ways to give staff more autonomy. 4

PredictionsDigital technologies will transform the way education is delivered and supported, for example through applications that enable real-time student feedback, and the way education is accessed in remote and regional areas3

Universities will need to rethink the role of digital channels and third party partnerships in recruiting students and delivering teaching and research programs.3

PredictionsUniversities will need to have a clear strategy and execution around targetstudent segments and theirspecific needs and preferences.3

leading organisations are allowingconsumers to connect, design and configure products to their unique personal preferences. 4

External Trends- Increased collaboration across

universities- Industry-based research

partnerships & commercialisation

- Teaching-research nexus- Relationships with important

international institutionsPredictionsDigital collaboration brings together informal and formal ways for people to learn about each other’scapabilities and backgrounds. 4

Australia will need to deepen and broaden our relationships across the community as competition for influence and access to markets increase in coming decades. 5

References1: Gartner Identifies the Top 10 Strategic Technology Trends for 2013, Gartner 2012: http://www.gartner.com/it/page.jsp?id=22096152: What’s on the Emerging Technology Roadmap for 2013?, Mark Tonsetic IEC 2012: http://tech.exbdblogs.com/2012/09/18/whats-on-the-emerging-technology-roadmap-for-2013/3: University of the future, Ernst & Young 20124. Digital Disruption Short fuse, big bang, Deloitte 20125. Australia in the Asian Century, Commonwealth of Australia, 2012: http://asiancentury.dpmc.gov.au/

PredictionsBig Data is moving from a focus on individual projects to an influence on enterprises’ strategic information architecture1

Another capability inviting investment is data analytics, due to the increasingly greater potential to capture and gain value from information about customers,operations and other factors. 4

As digital solutions result in ever-more-available data, and analytics discovers the meaningful patterns within those data, approaches tobusiness intelligence are maturing to change the way that management responds to information 4

TRACEInformat ionSPACECollaborat ionFACEPersonalisat ionPACEFlexibi l i tyPLACEM obil i tyExternal Trends-Significant growth in

research data commensurate with growth in computing power

External Trends-Changing student profile &

expectations- Context-aware computing- e-Identity of staff and students

- Self administration of student information

-Digital technologies in campus based learning

-Industry based content delivery and certification

- Changes to the University teaching model

-Public cloud storage-Remote assessment methods-Cloud based office productivity

tools

External Trends

-MOOCs-Free online

education-eLearning - Increasing

Expectations of research data transparency

41*

Five Megatrends at the core of the 2013/5 eStrategy

What is Watson@Deakin?

Personalised, adaptive, all-in-one Hub

DeakinSync

SOCIAL MEDIA COMMAND & INNOVATION CENTREThe SMCIC plays a pivotal role in driving the digital frontier

As part of the LIVE the future: Agenda 2020 Deakin is striving to become the premier university in driving the digital frontier, requiring us to provide a world-class digital and customer experience.

The SMCIC is a centre of excellence for social media, with the aim of driving a University-wide approach to delivering a consistent, personalised and engaging experience for our communities, customers, staff and partners. It is a centralised hub for all things social and is the central driving force behind digital and social interactions.

This unified approach to social media has significant organisation wide benefits.• Uplift social media capability by training staff members.• Impact student decision making during key moments of truth.• Track and measure our product and service offerings by identifying enablers and barriers.• Gain a competitive advantage by utilising our social presence to identify valuable insights about our brand,

products and service offerings.• Build strong brand awareness and consideration and help deliver on Deakin’s promise through its operations with

their social media communities.• Leverage Deakin’s globally dispersed and demographically varied online community to showcase our ‘Worldy’

brand.

Cloud Campus ProjectThe Cloud Campus Project is coming . More information will be available at this site in July 2015.

The ultimate goal …

CompellingConsistent

OmnichannelDelightfulPowerfulSimple

PersonalInspiring

DigitalExperiences

The objective should be to transform the

digital cacophony into a digital symphony !!!

The response to DIGITAL DISRUPTION is not INFORMATION TECHNOLOGY. The response is DIGITAL TRANSFORMATION.

Technology is the Reason and the Driver but not the Solution.

DIGITAL TRANSFORMATION is not TECHNOLOGY MODERNISATION.

DIGITAL TRANSFORMATION is the process of acquiring DIGITAL MATURITY.

Altimeter Group released their new report on The 2014 State of Digital Transformation“The vast majority of people Altimeter interviewed for this report claimed they are undergoing Digital Transformation, even though most of them don’t know what it is”“Thinking they are changing but in reality they’re only investing in technology. That’s not really digital transformation.”

THE HUGE CONFUSION

DIGITAL MATURITY CONSIST OF:

IngredientsIdeas

Investment Pockets of TalentResults

(Early) Impact(Non sustainable) Market Share

(Soft) Reputation(Short Term) Increased Revenue

The WHAT

It is about TOOLS

The HOW

It is about PEOPLE

IngredientsVision

Focus/MotivationSkills/Understanding

Cross Functional CoordinationStructureCulture

GovernanceIncentives

ResultsIncreased Collaboration

Age AlignmentEfficiency, Speed and Performance

Sustainable Digital IntensityFuture Proofing

DIGITAL PERFORMANCE

+

DIGITAL DNA

Strong Infostructure Core

Adaptive Integrated Systems & Processes

Soft & Beautiful Digital Skin

THE ANATOMY OF A MATURE DIGITAL ORGANISATION:

The pre-digital approach to Initiatives, Governance, Incentives and Coordination in general:

Strong Infostructure Core

Adaptive Service Oriented Systems & Processes

Soft & Beautiful Skin

The Ultimate Digital Machine

CRICOS Provider Code: 00113B

Eyes on the forest, not on the trees !

Content

① Understanding the disruptors

② Impact on Financial Services and Super

③ The Quest for the Digital DNA

④ The new IT Leader

The New IT Leader

• Technology is now a core part of our life, everywhere and anywhere. Organisations continue to depend on secure, reliable, efficient and stable platforms, but the traditional approach to IT will not meet the new digital multidimensional challenge. Transformational leadership is needed now.

• IT/Digital must help businesses quickly adapt to this new, still forming digital environment and succeed in the face of rapid, ubiquitous technological change.

• Focus on enterprise strategy and not solely on technology. It is essential that digital leaders build a culture of sustainable enterprise change, embrace innovation, and take an outside-in perspective.

The New IT Leader

• The market expects a new breed of digital leader who is focused on enterprise strategy and not solely on technology. Rather than only implementing foundational enterprise platforms, the primary focus must be on orchestrating complex digital ecosystems to deliver premium experiences to customers

• The new mission is to architect digital blueprints, build big data backbones, establish agile service architectures and orchestrate powerful, complex digital ecosystems, with the absolute primary goal of delivering premium experiences and creating competitive advantage

• The new IT function is being called upon to be the innovation engine of the business – strategic, agile, hyperaware, predictive and bold.

Image credit: science.nationalgeographic.com

DIGITAL: MASSIVELY DISRUPTIVE TIMES AHEAD

William ConfalonieriChief Digital Officer

Deakin University

william.confalonieri@deakin.edu.auwconfalonieri @ LinkedIn

Thank you