Keynote Brian Curran - oowBR 2016

Digital Disruption: It’s Still About People & Business Fundamentals

Brian J. CurranVice PresidentCustomer Experience Strategy & Design

Digital DisruptionWhat is it?

How do I disrupt?How do I build disruption into my organization’s DNA?

resultsfinancial value

for the business

needsfunctional & emotional motivators

experiencesperception of the engagement

( useful, usable and meaningful )

attitudeswhat I am thinking

behaviorswhat I am doing

expectationsbeliefs about impending engagement

(before, during, next)

DRIVE DELIVER

engagementsinteractions along the journey

INFLUENCE

FRAME

SHAPE

Useful Experiences

Appropriate Timely ConsistentEffective Accurate

What a product, service & engagement offers customers functionally

Useable Experiences

Convenient Easy IntuitiveStreamlined Tailored

How much effort is needed to engage an organization and it’s offerings

Meaningful Experiences

Personal Emotional StylishTrusted Memorable

How meaningful experiences are at an

emotional level

Useful Experiences

Appropriate Timely ConsistentEffective Accurate

What a product, service & engagement offers customers functionally

Useable Experiences

Convenient Easy IntuitiveStreamlined Tailored

How much effort is needed to engage an organization and it’s offerings

Meaningful Experiences

Personal Emotional StylishTrusted Memorable

How meaningful experiences are at an

emotional level

EMOTIONAL NEEDS

The motivation behind the functional needs

FUNCTIONAL NEEDS

The most basic requirements for completing a journey

7

P.E.S.T.L.E. SITUATIONAL CONTEXT PREVIOUS ENGAGEMENT GEO DEMOGRAPHICS

Macro factors that are generally outside the

control of an organization

• Political

• Economic

• Social

• Technical

• Legal

• Environmental

The group of conditions that exist where and when something happens

• Time of Day

• Date Significance

• Location

• Surrounding Noise

• Device Status

• Ambient Temperature

Historical interactions with the organization, it’s partners, or

competitors

• Recency

• Frequency

• Adoption

• Stickiness

• Advocacy

• Lifetime Value

Regional, generational, and other demographic

influences

• Population Distribution

• Income

• Age

• Culture

• Employment

• Education

Factors Influencing Customer Expectations

Disruption

A radical change that creates a new market and value network and eventually upsets an existing market and value network,

displacing established market leaders and alliances.

~ Clayton M. Christensen

noun| /disˈrəpSH(ə)n/

Innovation

An idea executed to meet a need

noun| /inəˈvāSH(ə)n/

Types of Innovation

SUSTAINING INNOVATION

Current SegmentsKnown NeedsMature Trends & Accelerators

BREAK-THROUGH INNOVATION

Current SegmentsKnown NeedsImmature Trends & Accelerators

Underserved SegmentsUnknown & Unmet NeedsMature Trends & Accelerators

DISRUPTIVE INNOVATION

EnvironmentPolitical Economic Legal

Data Privacy

PESTLEmacro trends & accelerators

Technology

Messaging

Social

Selfies

We know the examples, but what exactly is disruptive about them?

Uber Spotify Netflix AirBnB Facebook Amazon WhatsApp

Google MapsDJI DronesZillowSquareAlibabaFitbitTesla

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. For whom are we creating value?

2. Who are our most important customers?

3. What are the customer archetypes?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. What value do we deliver to the customer?

2. Which one of our customer’s problems are we helping to solve?

3. What bundles of products and services are we offering to each segment?

4. Which customers needs are we satisfying?

5. What is the minimal viable experience?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. Through which channels do our customer

segments want to be reached?

2. How do other companies reach them now?

3. Which ones work best?

4. Which ones are most cost–efficient?

5. How are we integrating them with

customer routines?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. How do we get, keep, and grow customers?

2. Which customer relationships have we established?

3. How are they integrated with the rest of our business model?

4. How costly are they?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. For what value are our customers really willing to pay?

2. For what do they currently pay?

3. What is the revenue model?

4. What are the pricing tactics?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. What key resources do our value

propositions require?

2. What key resources do our

distribution channels require?

3. What key resources do our

customer relationships require?

4. What key resources do our

revenue streams require?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. What key activities do our value propositions require?

2. What key activities do our distribution channels require?

3. What key activities do our customer relationships require?

4. What key activities do our revenue streams require?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. Who are our key partners?

2. Who are our key suppliers?

3. Which key resources are we acquiring from our partners?

4. Which key activities do our partners perform?

Key Partners Key Activities Value Propositions

Customer Relationships

Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Designed by: Strategyzer AG

This work is licensed under the Creative Commons Attribution-ShareAlike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, PO Box 1866, Mountain View, CA 94042, USA.

1. What are the most important costs inherent in our business model?

2. Which key resources are most expensive?

3. Which key activities are most expensive?

There are many ways to disrupt a business model

• Turn beliefs upside down

What if LED technology puts an end to the lighting industry as a replacement business?

Philips Lighting

What if you can get stuff done in chunks by accessing a global workforce in small increments?

TaskRabbit

What if people who shopped in discount stores would pay extra for designer products?

Target

What if consumers want to buy electronics in stores, even after Dell educated them to prefer direct buying?

Apple

• Four Action Framework: Eliminate, Reduce, Raise, Create

• Look at individual building blocks

• Embrace established patterns

What are established patterns?

Patterns

Business models with similar characteristics, similar arrangements of business model building blocks, or similar behaviors.

List from The Business Model Navigator, by Gassman, Frankenberger, & Csik

Add-OnAffiliationAikidoAuctionBarterCash MachineCross-SellingCrowdfunding

Flat RateExperience Selling

Fractional OwnershipFranchisingFreemium

E-Commerce

CrowdsourcingCustomer Loyalty

Direct SellingDigitization of Physical Products

From Push to PullGuaranteed AvailabilityHidden RevenueIngredient BrandingIntegratorLayer PlayerLeverage Customer DataLicensing

Open BusinessNo Frills

Open SourceOrchestratorPay per Use

Multi-Sided Platforms

Lock-InLong Tail

Mass CustomizationMake More of It

Pay What You Want

Peer to PeerPerformance-based ContractingRazor and BladeRent Instead of BuyRevenue SharingReverse EngineeringReverse InnovationRobin Hood

Trash to CashTarget the Poor

Ultimate LuxuryUnbundlingUser Design

Supermarket

Self-serviceShop in Shop

SubscriptionSolution Provider

White Label

Multi-Sided Platform

Bring together two or more distinct but interdependent groups of customers.

Value to one group of customers only if the other groups of customers are also

present.

The platform creates value by facilitating interactions between the different groups.

A multi-sided platform grows in value through the network effect.

~ Osterwalder, Alexander; Pigneur, Yves. Business Model Generation

Publishers Readers

Facebook

Homeowners Renters

AirBnB

Advertisers Consumers

Google AdWords

Owners Buyers

ebay

Musicians Listeners

Spotify

Multi-Sided Platform Examples

Taxicab Industry

1662: First hackney-carriage licenses issued in England

1834: Horse-drawn hansom cab patented

1891: Modern taximeter invented

1897: The world's first gasoline-powered taximeter-cab

1940’s: Two-way radios first appear in taxicabs

1980’s: Computer-assisted dispatching

Uber

Type: Private

Industry: Technology

Founded: March 2009

Headquarters: San Francisco, California USA

Services: Taxicab, Vehicle for hire

Number of employees: 6,700

“I need a ride”Need to get from point A to point B

Need to feel that the car will be safe and clean

Need to know how much it is going to cost

Need to know when the car will get here

Need to know how long it will take to get to point B

Need to make it easy to pay for the ride

Need to share my feelings about the experience

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas

Flexible work schedules

Use personal vehicle

Passengers on-demand

Transparent waiting time

Cashless ride

Safe & clean cars

Passengers

Drivers

Highly automated

Digital (mobile & social)

PR

Software development

Driver onboarding

Software platform

Pricing/routing algorithm

Platform development

Sales & Marketing

Local regulatory agencies

Mapping data providers

Payment processors

Drivers with own cars

Pricing/routing algorithmEmployee Salaries

Driver Payouts

Pay per Ride charges

Surge pricing

Premium Uber brands

Convenient public transit PassengersSignificantly manual

Phone & on-street

Driver dispatch & Cars

Drivers, cars, dispatch

Local regulatory agencies

Pay per Ride chargesSalaries & Cars

Vehicle advertising

TAXI UBER UBER PASSENGER

UBER DRIVER

Businesses Needing Courier Service

Uber fulfilled unmet needsNeed to get from point A to point B

Need to feel that the car will be safe and clean

Need to know how much it is going to cost

Need to know when the car will get here

Need to know how long it will take to get to point B

Need to make it easy to pay for the ride

Need to share my feelings about the experience

Source: ANDREW HARRER/BLOOMBERG/GETTY IMAGES

Uber targeted people willing to become part-time drivers: An under-served segment

Bringing the Trends & Accelerators Together

Explosion of data availability and richness

Underserved SegmentsUnknown & Unmet NeedsMature Trends & Accelerators

DISRUPTIVE INNOVATION

Preference for cashless payments

Preference for mobile-first engagements

“Gig economy” becomes accepted

Sharing economy becomes mainstream

List from The Business Model Navigator, by Gassman, Frankenberger, & Csik

Add-OnAffiliationAikidoAuctionBarterCash MachineCross-SellingCrowdfunding

Flat RateExperience Selling

Fractional OwnershipFranchisingFreemium

E-Commerce

CrowdsourcingCustomer Loyalty

Direct SellingDigitization of Physical Products

From Push to PullGuaranteed AvailabilityHidden RevenueIngredient BrandingIntegratorLayer PlayerLeverage Customer DataLicensing

Open BusinessNo Frills

Open SourceOrchestratorPay per Use

Multi-Sided Platforms

Lock-InLong Tail

Mass CustomizationMake More of It

Pay What You Want

Peer to PeerPerformance-based ContractingRazor and BladeRent Instead of BuyRevenue SharingReverse EngineeringReverse InnovationRobin Hood

Trash to CashTarget the Poor

Ultimate LuxuryUnbundlingUser Design

Supermarket

Self-serviceShop in Shop

SubscriptionSolution Provider

White Label

Innovation Design Process

Innovate

Frame

Pilot

ProposePlan

Focus: Structured, disciplined brainstorming in order to develop ambassadors, and equip, enable, and empower them to envision possibilities, and produce concepts of clear value to the customer and to the business.

Focus: Attain a level of clarity around the real opportunity and the motivation to innovate in order to change a financial result

Focus: Produce a proposal and presentation in order to get approval to proceed through to Pilot

Focus: Develop the detailed execution plan that specifies who, what, when, where, and how to engage with the customer in order to deliver the pilot experience

Focus: Build, test and measure the minimally viable experience in the market

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments

Key Resources Channels

Cost Structure Revenue Streams

The Business Model Canvas DIGITAL APLICATIONS

DIGITAL ANALYTICS

INNOVATION ENVIRONMENT

INFORMATION & BIG DATA MANAGEMENT

CHANNEL MANAGEMENT

INTEGRATION & SERVICE MANAGEMENT

InsertYour

DisruptionHere

Innovation

An idea executed to meet a need

noun| /inəˈvāSH(ə)n/

be disruptive

www.linkedin.com/pub/brian-j-curran/1/257/92

brian.curran@oracle.com

www.designingcx.com

Digital Disruption: It’s Still About People & Business Fundamentals

Brian J. CurranVice PresidentCustomer Experience Strategy & Design

Thank you