Beyrouth, 28 Mars 2019

REVOLUTION

Alexandre GEORGE

DIGITALREINVENTING BUSINESS

IN A DIGITAL AGE

BONJOURAlexandre GEORGE

Alexandre GEORGE

The digital revolution is eating EVERYTHING

music news films books fashion tickets contracts work

Everything we BROADCAST

Everything we DISTRIBUTE

Everything weDO

Everything weARE

objects body health Min<d

AI, 3D printBlockchainRobots, VR

IoTAugmented self

Singularity

PlatformsData

decisions

Media

The Desktop Age1990

The Internet Age2000

The Mobile Age2010

The AI-AR Age2020

This revolution has been developing over THREE DECADES

September 2015

300,000 hires in 55 companies

Human experience, instinct, and judgment

… defeated by AI

People picked by computer

performed better

stayed for longer

by at least 25 percent

Alexandre GEORGE

1998-2001

2009-10

It’s growing FASTER and FASTER

Time to acquirefirst 50m clients

44 m

15 m

15 d

2014

FAST & FURIOUS

BRAND N of ROOMS TIME to REACH ONEM ROOMS

MARKET CAPIn $B

YEAR of CREATION

REAL ESTATE underMANAGEMENT

AIRBNB > 1 million 7 years 28 2008 0

MARRIOTT 1,1 million 58 years 15 1957 985 $ millions

COSTS of LAUNCHING a BUSINESS are dropping

© Amazon AWS

Alexandre GEORGE

1960

19802011

Corporationsav. lifespan

61 y

Corporationsav. lifespan

25 yCorporationsav. lifespan

18 y

- 40 yin 50 years

75% of S&P 500 companies

won’t exist by 2027

FAST, CHAOTIC & DANGEROUSThe digital revolution is changing the BUSINESS LANDSCAPE

© Bloomberg, HBR, S&P 500

NOKIA Mobile Terminals1998-2013

a 15-year business

THE END• • •• • •

It’s chaotic and DANGEROUS

“ - We didn’t do anything wrong.But, somehow, we lost”.

Stephen Elop, CEO NOKIA

The Revolution is breaking bad

From Hero … to Zero

US Senate Hearing – April 10th, 2018

TECHLASH is the new buzzword

TIME SPENT ON MOBILE GROWS

+117% YoY

3h:0 per day

Growing crazy

+2,8 Bn Smartphones in circulation ww

YOU have SUPER POWERTitanic 2.0

Alexandre GEORGE

IoT

App

OnlineStore

PRODUITINTELLIGENTSCONNECTÉS

DATA LAKE

Services

DESCRIPTIF DIAGNOSTIC PRÉDICTIF PRESCRIPTIF

MACHINE LEARNING

Content

Ressources

Typical framework for digital transformation

DESCRIPTIF DIAGNOSTIC PRÉDICTIF PRESCRIPTIF

Informations

Contenus

Décision

Services

DATA LAKE

Équipement IoT

DiagnosticTime / Costoptimisation

Predictive

Prescription

Maintenanceautomation

TIRE TIRE CARE

reduction in fuel consumption of 2.5 litres per 100km

represents annual savings of €3,200 for long-haul transport travelling over 120,000 km

at least 2.1% reduction in total cost of ownership

8 tonnes saved in CO2 emissions

TIRE-AS-A-SERVICE

DATA

Typical value creation from digital transformation

MACHINE LEARNING

AR / VR

SOCIAL NETWORKS

with

Service Custom UX

Time Cost Pain

ROBOTS

InfiniteCUSTOM

proposition

End offrustrationfrom OOS

Enhancementof shopping

EXPERIENCE

1 2 3

ENDLESS AISLE

Abolition of TIME

constraints

Drastic reduction of SPACE

BroadenCUSTOMIZATION

possibilities

4 5 6

SPEED FACTORY

App opens … +helps +scans productsShop with no cash, no basket, … delivered home 1H

The PROBLEM is nothow to create something NEW.

The PROBLEM ishow to get rid of your OLD ideas.

Bruce Henderson, BCG Founder & CEO, 1965

“ ”

PERSONALTrackers

CUSTOMSneakers

CONTENTPrograms

CONNECTEDItems

SOCIALNetworks

TRAININGApps

=Relevance + Timeliness

Loss of PrivacyTrust

Personalization Value Equation

Value to Customer

DIGITAL PERSONALIZATION

Alexandre GEORGE

PERFORMANCE

TIME

WHAT is digital disruption, actually?

Over-servingthe MARKET

© Clayton Christensen

INCUMBENT BUSINESS MODEL

n

PERFORMANCE

TIME

WHAT is digital disruption, actually?

IncumbentOUT of MARKET

© Clayton Christensen

DISRUPTOR BUSINESS MODEL

n

© Mercedes-Benz - 2018

Mercedes-me : a holistic system EMPOWERING customersin their quest for agile mobility

© Mercedes-Benz - 2018

Mercedes-ME : system of connexion and appsbefore | during l after … the journey

© Mercedes-Benz - 2018

From PRODUCT to AUGMENTED VALUE PROPOSITION

CUSTOMER CENTRICITY

Vs

PRODUCT FOCUS

Listen to customer[Data, Analytics]

Car

FinanceInsurance Assistance

MobilityServices

UX /Content

Digital / IRL value chainData +

MachineLearning

Serve & empower[lift pain points and limits]

Customcentricity

Mercedes me NEW BUSINESS MODEL

Data

Data

Data

Data

Data

It’s DIGITAL OR DIE

Our task is to preserve our business modelwithout surrendering it to an internet player.

Otherwise we will end up as the Foxconn for a company like Apple. Delivering only the metal bodies for them.

“

” © Mercedes-Benz Annual Report - 2017

Alexandre GEORGE

Bruce Henderson, BCG Founder & CEO, 1965 Alexandre GEORGE

*Merci !

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