Marcie Merriman - eyboletin.com.mx · *Sources: Forbes, Viacom, Cassandra Report, JWT 2015 Savers Creating a generation of ambitious realist Think they are more driven than their

The better the question. The better the answer.�The better the world works.

Marcie MerrimanAdvisory | Consumer Products | Strategy

Move Over Millennials: How Generation Z is

Shaping the Future

The edge of a revolution

1%According to Cisco’s CTO,

Padmasree Warrior, only 1 percent of what could be connected in the

world actually is

35Days for a new technology to reach

a critical mass of 50m users

50bnInternet connected “things” by 2020** including sensors, RFID

chips etc.

Mobile

Social

Cloud Computing

Internet of Everything

Big Data

“We stand on the brink of a technological revolution that will fundamentally alter the way we live, work, and relate to one another. In its scale, scope, and complexity, the transformation will be unlike anything humankind has experienced before”

World Economic Forum

Source: http://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond

http://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond

A new generation emerges

Gen ZMillennials

Gen Z

Confidential – All Rights Reserved – Ernst & Young LLP

PewDiePie

#1 YouTube 53MSubscriptions

*Source: YouTube **Source: Variety Magazine Survey 2014

#2 Most influential celebrity **


Gen ZMillennialsMark Zuckerberg

Justin Bieber

Taylor Swift

Lady Gaga

Steve Jobs

Smosh

PewDiePie

The Fine Brothers

KSI

Ryan Higa

Top influential celebrities

Source: Variety Magazine Survey 2014Source Huffington Post 2014



Gen Z Millennials

Born into a volatile and

unpredictable world


• Oldest in kindergarten on 9/11

• Constant state-of-war

• Global recession

• School Violence

Feel that school

violence

will have the biggest

impact on their

generation

Source: Cassandra Report, 2013

43%


63%

Consider

themselves savers

*Sources: Forbes, Viacom, Cassandra Report, JWT 2015

Savers

Creating a generation of ambitious realist

Think they are more

driven than their

peers

Driven.

80%84%Agree, “It’s really

important to be

really prepared

and have a plan.”

Prepared

89%Spend free time

productive and

creative rather than

just hanging out

Uber-

productive



56%achieved

workplace equality 87%

racial discrimination

still exists

77%views different than parents generation

*Sources: Pew Centr Research; Source: JWT, 2015


Source: MTV Research, 2016

Technology helps Gen

Z understand people

who are different from

themselves

A new generation emerges

Millennials

Gen Z• Persistent

• Entitled


• Innovative

• Skeptical• Creative

• Optimistic

• Dependent

• Self-reliant

Their world


Their world


changed

us

Validated

Sheltered

Helicopter-parents

Millennials

Protected


Aware

Independent

Consultative

Stealth-bomber-parents

Gen Z

Prepared


Spending power

of parents say their

children influence

family spending and

household purchases

93%

Source: Cassandra Report, 2015


In m

illio

ns

Your future co-worker

0

10

20

30

40

50

60

70

1995 2000 2005 2010 2015 2020


Millennials

54.5MM

Gen X

50MM

Baby Boomers

39.1MM

Gen Z

18.3MM

Silent Generation2.1MM


Over the past several years, educators, employers,

researchers, retailers and the like have spent significant

time and resources dissecting the Millennial mindset. But

the time has already come to focus to Gen-Z, which

promises to be just as, if not more, influential.

- Goldman Sachs

Source: Goldman Sachs, “What if I told you Gen Z is more important than Millenials?” December 2015


The future is already here

– it’s just not evenly

distributed.

- William Gibson


David JensenAdvisory | Strategy | Disruptive Innovation

Innovation RealizedSpark to Scale

Disruptive Innovation Structured Mischief™28

Disruption: When, not if

2006Renting DVDs from a store is the most convenient way to access entertainment

Marriott is the largest hotelier with 328,000 rooms owned in 2005

Can you split the bill 6 ways?

2016All my entertainment is available streaming and on-demand

Splitting the bill is no longer an issue…

The world’s largest hospitality company ownsno property


When you think of Disruption, what does it actually look like?


0

10

20

30

40

50

60

70

1 6 11 16 21 26 31 36 41 46 51 56 61 66

Ye

ars

Actual Results ProjectionsAverage Company Lifespan on S&P Index in years (rolling 7-year average)

By 2020 more than 75% of the S&P 500 will be companies that we haven’t heard of yet - Richard Foster, Yale University

Disruption: When, not if


How businesses are responding

Disruption Is All Around Us

•What new industries willthere be in 20 years?

•Will your industry still exist?•Where are the opportunities across the borders ofyour industry?

•What will your futurejob look like?

•Who will you work for?•Are you going to be working from home?

•Will you have a boss?

•Where will you live?•Will the term ‘rural’no longer exist?

•Will houses be replaced by skyscrapers?

Alphabet logged more than3 million miles per day in simulation and 10k -15k autonomous miles per week on public streets # of Mega cities

(pop. > 10 million):

• 1970: 2 • 2016: 23• 2030: ~41

The fastest growing urban areas will be mid-sized cities in Asia and Africa

1970

Today

2030

By 2020, Intuit predicts that 40% of Americans workers will be independent contractors



• Most are trying to do something about it…

Secret research and development facility, Google X, to drive disruptive innovation

Sample projects include: self-driving car, Google Glass

Strong ideation process that constantly seeks to identify market evolutions

Leverage existing capital investment and manufacturing

Sample projects: Powerwall, electric cars

A secretive research and development lab, SparqPerformance Center to explore new products and service

Sample projects: VaporMax, Zoom Air, Lunarlon

A subsidiary, Ford Smart Mobility, to design, build, and grow in emerging mobility services

Located in Silicon Valley, with an emphasis on “building human progress”



• …and not even the usual suspects

Opened Viacom Lab to deliver products, platforms and businesses that shape the future of fan experience and engagement

Select projects: ‘Fanufacturing,’ Livestreaming, Experiential Fan Opportunities, and Citia

Seek to push the boundaries of sea fleets by offering innovative products such as surf parks, onboard ice-skating rinks, and cascading waterfalls

Ships designed to create a ‘WOW’ factor that will hook in and keep consumers addicted to Royal Caribbean Cruises

Innovation Centers in major global innovation hubs that partner with R&D and product development leaders, investors, transaction advisers, and consultants

J&J Development Corporation, Janssen Labs, IAME, and EIP

Robust innovation network that includes an Munich Re Innovation Lab, a Chief Innovation Driver, and corporate & VC components

Focus on bringing new products and services to market with sole focus on accelerating development and go-to-market


EY’s view on Disruptive Innovation

• Today, it is riskier to prioritize your investments around sustaining and adjacent rather than disruptive innovation

By focusing on Sustain and Adjacent innovation investments you’re effectively ‘betting the farm’

The golden 70-20-10 innovation investment ratio is ideal for high performing companies

With Structured Mischief, you can increase the return and decrease the risk even without rebalancing the portfolio

Structured Mischief increases your ability to identify and act upon Disruption Inflection Opportunities (DOIs)

Where to Play

How

to W

in

Disruptive

Adjacent

Sustaining

Serve existing customers and markets

Serve adjacent markets and/or customers

Enter new markets and/or target new customers

Optimize existing products,

resources, and processes

Add incremental products,


Develop new products,


“It’s often easier tomake something 10xbetter than it is tomake it 10% better”Dr. Astro Teller, Captain of Moonshots at (Google) X


010,00020,00030,00040,00050,00060,00070,00080,000

19992000200120022003200420052006200720082009201020112012201320142015

Series1

Su

bsc

rib

ers

(in

th

ou

san

ds)

YEAR


• Netflix: Story of a company that successfully disrupted itself on three separate occasions

NFLX Subscriber History (1999-2015)

Netflix goes public as the largest provider of online movie rentals

Founded Blockbuster decline to purchase Netflix for an estimated $100 million.

Management declares a new vision, independent of their DVD subscription, by commercializing the online streaming business for customers

Netflix introduced the first flat-fee DVD rental subscription available online

Netflix launches a series of original content to enable a new future as a top media producer, not only as a media distributor

1999 2000 2002 2007 20111997

Disruption Inflection Points

Flat-Fee DVD Rental

StreamingService

Netflix Original Content

317% SUBSCRIBER INCREASE

Disruptive Inflection Point-driven approach

identifying and creating Disruptive Inflection Points (DIPs) is EY’s answer to driving radical growth in an environment of accelerating disruptive innovation.

MARKETTIMING

CAPABILITIES

PARTNERSHIPS & INVESTMENTS

TECHNOLOGY

RISK TAKING

CULTURE

LEADERSHIP

PURPOSE

DISRUPTION INFLECTION POINTS

DIP

Control

Monitor

INDUSTRY

disruptive innovation: Structured Mischief

A green light tofly the pirate flag

Structured Mischief ™

The management process, mentality, and structure that enable the identification and action on DIOs by having the Right Attitude and Right Preparations, and monitoring the Right Conditions

Benefits:

Drives moonshot thinking and more impactful innovation

Minimizes misses and maximizes the upside of innovation

Is a methodicalway to hedgeagainst disruption

innovation spectrum

our innovation focus is working with clients across the spectrum, with a priority on disruption.

because that’s what the market is asking for.

Incremental Change

AdjacentInnovators

SustainingInnovators

DisruptiveInnovators

RadicalGrowth

Risk Appetite

Core Beliefs

ProductExamples

Low Medium High

Protecting downside Retaining growth

Maximizing upside Exponential growth

Minimizing downsideGrowing incrementally

• iPhone• App Store

• Windows 7• Surface

• Flat-screen TVs• Smartphones


Example: Innovation Structure & Operating Model

• EY lead a global agricultural organization create their disruptive innovation strategy and activation program

Corporate & Innovation Strategy

Art of the Possible Voice of the

Customer

Outside-In research and innovation workshops create baseline market innovation hypotheses

1) Research and Potential Futures Analysis

2) Future State Operating Model

The operating model hypothesis defines how to operationalize high priority services with people, process, UX tools and IT systems

Operating Model

Corporate Operating Model

3) Innovation Structure & Operating Model

The innovation unit’s organizational structure and operating model was designed specifically to enable cross region learns and crate a culture of accelerated innovation

Innovation Operating Model

Innovation Operating Model


What is Disruptive Innovation?

Disruptive Innovation is the art and science of creating RADICAL GROWTH by CHANGING THE WAY THE WORLD WORKS

What is Innovation?

Innovation is the art of MAKING HARD THINGS EASY and CREATING NEW VIABLE BUSINESS OFFERINGS


Maria Rey-MarstonAdvisory |Digital Operations | Analytics

How to serve the

#ConsumeroftheFuture? @MariaReySCM

EY | Advisory

The day everything changed: June 29, 2007

…and we became phy/gital beings

► Physical-Digital interplays

► Seamless experiences in-

store and at-home

► Convenience

► Connectivity

► Recurrence

► Endless channel

experimentation

► Real every-day-low-pricing

► “Automation” of tasks

The phy/gital consumer




store and at-home

► Convenience

► Connectivity

► Recurrence

► Endless channel

experimentation



http://www.google.com.mx/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=http://www.technewstoday.com/22570-amazoncom-inc-expands-its-prime-now-service-to-atlanta/&bvm=bv.114733917,d.eWE&psig=AFQjCNGKikpW7bRSGbnLYRSMgxRmS-CuBg&ust=1456163211675922

http://www.google.com.mx/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=&url=http://www.technewstoday.com/22570-amazoncom-inc-expands-its-prime-now-service-to-atlanta/&bvm=bv.114733917,d.eWE&psig=AFQjCNGKikpW7bRSGbnLYRSMgxRmS-CuBg&ust=1456163211675922

http://www.google.com.mx/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjEyoivtYnLAhUDPiYKHboPDSEQjRwIBw&url=http://www.independent.co.uk/life-style/gadgets-and-tech/news/amazon-prime-now-comes-to-london-giving-one-hour-delivery-in-capital-10354821.html&bvm=bv.114733917,d.eWE&psig=AFQjCNGKikpW7bRSGbnLYRSMgxRmS-CuBg&ust=1456163211675922

http://www.google.com.mx/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwjEyoivtYnLAhUDPiYKHboPDSEQjRwIBw&url=http://www.independent.co.uk/life-style/gadgets-and-tech/news/amazon-prime-now-comes-to-london-giving-one-hour-delivery-in-capital-10354821.html&bvm=bv.114733917,d.eWE&psig=AFQjCNGKikpW7bRSGbnLYRSMgxRmS-CuBg&ust=1456163211675922




store and at-home

► Convenience

► Connectivity

► Recurrence

► Endless channel

experimentation



How to serve the

#ConsumeroftheFuture?

Page 51 | Serving the #ConsumeroftheFuture

• How do you find things in the P/D era?

• Search engine optimization (SEO)

• Conversational commerce

FIND

It all starts with

finding what

shoppers look for.

CONSUMEBUYCHOOSE

How do you choose in

the physical-digital

world?

How do you buy in

the physical-digital

world?

How do you consume

in the physical-digital

world?

• How do you choose things in the PD era?

• Recommender algorithms

• Cognitive commerce

• How do you buy things in the PD era?

• Channel hopping

• Brands as platforms for shopper connection

• How do you consume things in the digital era?

• LATTE

• Experiences

• Servitization

The phy/gital consumer and its path-to-consumption


Serving the #ConsumeroftheFuture

16routes-to-market to

serve the

#ConsumeroftheFuture

4steps in the path-to-

consumption

2alternatives for every step along the path

and fulfill #ConsumeroftheFuture’s demand in sustainable and profitable ways

Four actions to flex your routes-to-market

Set your innovation priorities


01.

LEVERAGE

02.

ENABLE

03.

ENGAGE

04.

SCALE

Four actions to flex your routes-to-market

16

Demand-Driven

Phy/Gital

RTMs

16

Demand-Driven

Phy/Gital

RTMs

01.

LEVERAGE

02.

ENABLE

03.

ENGAGE

04.

SCALE

RTMs leverage technologies in the

digital dome to drive profitable growth and

to connect the enabling network of

assets.

01.

LEVERAGE

02.

ENABLE

03.

ENGAGE

04.

SCALE

16

Demand-Driven

Phy/Gital

RTMs

01.

LEVERAGE

02.

ENABLE

03.

ENGAGE

04.

SCALE

RTM enables key actions of the path-to-

consumption and converts shoppers into buyers reducing friction with phy/gital audiences

16

Demand-Driven

Phy/Gital

RTMs

01.

LEVERAGE

02.

ENABLE

03.

ENGAGE

04.

SCALE

Successful RTMs shape phy/gital

demand by engaging audiences, internal

and external, in memorable experiences

16

Demand-Driven

Phy/Gital

RTMs

01.

LEVERAGE

02.

ENABLE

03.

ENGAGE

04.

SCALE

All solutions deployed to fulfill phy/digital demand must be scalable within a segment, and/or

market, and/or geo

16

Demand-Driven

Phy/Gital

RTMs

How to serve the

#ConsumeroftheFuture? @MariaReySCM

EY | Advisory


Documents

Marcie Merriman - eyboletin.com.mx · *Sources: Forbes, Viacom, Cassandra Report, JWT 2015 Savers Creating a generation of ambitious realist Think they are more driven than their