Digital Transformation
——— Digital Disruption
in finance ———
June 2015
[email protected] / @jcaudron / +32 475 43 80 98
AllDigitalNow
• we are a digital consulting company
• founded in 2009
• we work for large European clients
• we have a strong vision on the impact of digital and act accordingly
• we are advisors, writers, coaches and entrepreneurs
@jcaudron
Digital disruption is real. Expect a smack in the face…
who is your…
Waves of Digital Disruption
1995+ Music Photography Video Rental …
2010+ Print Media TV Travel HR …
2015+ Finance Healthcare Automotive Retail Education Telco …
2020+ All Safe havens will be subject to digital disruption …
@jcaudron
Disruption
Modeling
Transformation
You have a choice
@jcaudron
What can we learn?
The Glass House
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
Transparency, trust, authenticity,…
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House
google.com/trends/
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House Accountability
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House
Bi-directional
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House “Simple”, remember these guys…
simple.com Humanization
Transparency
Transparency
Accountability
Proximity
Responsiveness
Bi-directional
Humanization
Authenticity
The Glass House New transparent technologies like the Blockchain
blockchain.info
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package
Angry Birds Twitter, Facebook
Newspaper Website
CNN online / app
Blogs
Vertical sites and specialties portals
Yelo App Boxee
Spotify
Sporza.be
LinkedIn, Monster, ...
eBay
Pinterest, blogs
Weather Pro (iPhone)
Traffic: Waze + iCoyote (iPhone)
YouTube
Twitter, Facebook
RSS
Breaking news
In-depth analysis
Services
Weather
Classifieds
Jobs
Sports
TVFun
Specials
Discovery
culture
Trends & Lifestyle
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
The Package Unbundling
The Package
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
Unbundling of banks
The Package
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
PayPal’s simple and social payments app
venmo.com
Personalized pricingThe Package
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability metromile.com
The Package
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
Rebundling of health insurance with personalized lifestyle improvements
zoomcare.com/health-insurance
The Package
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
Subscriptions & packages in healthcare insurance
hioscar.com
The Package
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
Exquise user experience
m.gobank.com
The Package
Monolithic vs. atomic
APPification
Long Tail
Personalized
Experience
Speed
Price
(Self-)service
Scalability
Scalability
The Frog
Bypassing
Virtualization
Fragmentation of touchpoints
Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Bypassing
Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Other industries are getting into finance
Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Bypassing of overdrafts through better rates and no waiting times
koalaboox.com
Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Bypassing of stockbrokers
robinhood.com
Bypassing money transfer fees
Bypassing
Virtualization
Fragmentation of touchpoints
The Frog
transferwise.com
“The People” bypassing banks, Bitcoin is for real
Bypassing
Virtualization
Fragmentation of touchpoints
The Frog
goabra.com
Bypassing
Virtualization
Fragmentation of touchpoints
The Frog Bypassing of money transfer companies
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper Product simplification will allow for new gatekeepers…
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper New generations want new gatekeepers
millennialdisruptionindex.com
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper FinTech investments tripled in 1 year
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper They are afraid, are you?
shareholder.com/downloads/ONE/JPMC-AR2014-LetterToShareholders.pdf
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper New gatekeepers
etoro.com
New gatekeepers in retirement spending
myabaris.com
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper Rebundling all methods and channels into one experience
adyen.com
braintreepayments.com
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper Apps integrate payments through stripe, not banks
stripe.com
New gatekeepers
Recommendations
“Good is good enough”
Ambassadorship
The Gatekeeper “Good is good enough”
Pay, track, save, loan.
The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
PLACE OnlinePoS HybridOmnichannel
(digital entering PoS)
(all functions go digital too)
The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
The rise of mobile
The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
27% of global transactions on mobile devices
adyen.com/home/about-adyen/press-releases/mobile-payments-index-april-2015
The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
Empowered Self, Utility, Instant Gratification
moven.com
The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
Utility for better driving behaviour
axa.com.my/1741/en/useful-links/axa-drive/axa-drive
The Traveller
Place
Utility
Empowered self
Instant gratification
New way of working
Contextual awareness
Real-time
KBC wants to keep some offices open at night and during weekends - New way of working
The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
The sharing economy
audiunite.com/se/service/en_unite.html= 200 euro per maand per persoon
CrowdfundingThe Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
Civic crowdfunding
bron: frankwatching
Peer-to-peer lending with better ratesThe Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
lendingclub.com
Guess who are partnering with the Lending Club?The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
lendingclub.com
Insurance based on your networkThe Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
friendsurance.com
inspeer.me
Community for student loans and support
commonbond.co
The Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
Group buying your insuranceThe Participant
Community
Gamification
Collaboration
The power of the crowd
Sharing economy
boughtbymany.com
heyguevara.com
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Internet of Things
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Contactless payments
This is about data, not money.
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Financial management on your wrist
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Wearables will change our lifestyle
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Credit & insurance through smart device monitoring?
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
The future of car insurance?
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Data, Data, Data!
finextra.com/news/fullstory.aspx?newsitemid=27366
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Smart contracts
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
Programmable banks are coming
programmableweb.com/api/fidor
The Cyborg
Internet of Things
Wearables
Quantified self
Robotics
Data
Monitoring
New industries for insurance
bitgo.com
coverdrone.com
So, back to Digital Transformation
Create your own Digital Transformation vision and plan1
Create Digital Leadership2
Innovate in the right place(s)3
Build the Transformation Fleet4
Change the culture5
Create your own Digital Transformation vision and plan1
Create Digital Leadership2
Innovate in the right place(s)3
Build the Transformation Fleet4
Change the culture5
Glass House
Package
Frog
GatekeeperTraveller
Participant
CyborgTHE WHEEL OF CHANGE
Use the wheel to:
Spot and understand thedynamics of digital
disruption
Analyse the impact on your industry and business
Create a future vision and write a transformation strategy for your company
Build a roadmap that gets you there.
Sold in 28 countries
@jcaudron
It’s no longer about digital, it’s about business
Corporate (comm)Strategy
Digital Strategy
CompanyStrategy
Digital World
@jcaudron@jcaudronDigital Transformation Modeling
From ... ... to
The Business
Digital (at the sideline)
Digital in the core
@jcaudron@jcaudronDigital Transformation Modeling
From ... ... to
The BusinessDigital (at
the sideline)
From ...
The Business
Digital (at the sideline)
@jcaudron@jcaudronDigital Transformation Modeling
From ... ... to
The BusinessDigital (at
the sideline)
Digital in the core
From ...
The Business
Digital (at the sideline)
Digital in the core
Digital in the core
Digital in the core
@jcaudron@jcaudronDigital Transformation Modeling
From ... ... to
The BusinessDigital (at
the sideline)
Digital in the core
From ...
The Business
Digital (at the sideline)
Digital in the core
Digital in the core
Digital in the core
@jcaudron@jcaudronDigital Transformation
TV
Rad
io
Prin
t
Billb
oard
s
DM
Dig
ital C
hann
els
From ... ... to
Sale
s
Mar
ketin
g &
Com
mun
icat
ion
Serv
ice
& S
uppo
rt
HR IT
PR &
Ext
erna
l Com
mun
.
R&
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Ent
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ise
2.0
Digital Transformation
Create your own Digital Transformation vision and plan1
Create Digital Leadership2
Innovate in the right place(s)3
Build the Transformation Fleet4
Change the culture5
“If you can't understand the new world of digital, fire yourself.
Build an executive team that is digital-first (when problems arise, the first solution is always digital). Make sure there is a techie on the
board of directors. If the board has a low digital IQ, the company
will have a low digital IQ”
George ColonyCEO Forrester Research
So, where are you? How digital is your
company?
Digital Leadership Assessment
The ideal situation
CEOIdeally your CEO is the digital lead
CIO COO CbsOSalesMkt
Outside world
Digital Network
Digital Officers
DIGITAL OFFICE
You need Digital Leadership, on all levels
CIO COO CbsOSalesMkt
CDO
Virtual Digital Leadership Team Digital Leads
Board of Directors
Shareholders
CEO
Create your own Digital Transformation vision and plan1
Create Digital Leadership2
Innovate in the right place(s)3
Build the Transformation Fleet4
Change the culture5
The Classics The Converted The Digital The Ruptured
• (mentally) older generation that will not go digital soon
• no longer open to changes brought by digital
• they make you stretch the traditional business as long as possible
• slowly getting involved with digital and embracing it.
• they expect the digital services to be a translation of the traditional services.
• most of the digital investments today are focused here, but this is mainly fixing the basics
• still knows the old business models and logic, but that is already adopting a new behaviour and new business models and services.
• first adopters of entirely new business models (cfr. Netflix, Uber, …). Invest in this too
• raised with new concepts, with no recollection of the old models
• use a broad variety of business models and technologies
• digital natives, the children that grow up with tablets, apps and everything on-demand.
Traditional modelTraditional channels
Traditional modelsDigital channels
New modelsDigital channels Everything new
Incumbents (you) Challengers (them)
Different types of innovation
The Factory The Guesthouse The Garage
Incremental innovation• Development of ‘need to have’
digitals projects and technology
• Working on the existing foundation of the company
• Follows general procedures and regulations
• Slow
Change projects• Small and dedicated project-teams, focused
on in-house innovation
• Limited independency: they are an (internal) supplier of the factory
• Focus on strategically important new-style projects or add-ons that will be rolled-out within the existing company architecture
Breakthrough innovation• Small dedicated teams focused on innovation
• Autonomous operations and decisions
• Possibly separate entities
• Focused on agile and rapid development and roll-out of ideas in a stand-alone model
•These can be grass-root internal initiatives or acquisition of interesting targets
Create your own Digital Transformation vision and plan1
Create Digital Leadership2
Innovate in the right place(s)3
Build the Transformation Fleet4
Change the culture5
@jcaudronDigital Transformation
From ... ... toFrom ...
Create your own Digital Transformation vision and plan1
Create Digital Leadership2
Innovate in the right place(s)3
Build the Transformation Fleet4
Change the culture5
@jcaudron
1. The customer always
decides
@jcaudron
2. All things you do must start from a
superior experience
@jcaudron
3. From now on, you are an agile and flexible company
@jcaudron
4. You live in a world
of uncertainty
@jcaudron
5. Always play on the offense instead of
the defense
@jcaudron
6. Don’t be afraid to cannibalize
your own business
@jcaudron
7. Never, ever, disrespect
new or small players
@jcaudron
Never, ever, disrespect new or small players
The customer always decides
All things you do must start from a superior experienceFrom now on, you are an agile and flexible company
You live in a world of uncertainty
Always play on the offense instead of the defense
Don’t be afraid to cannibalize your own business
How far away is this from YOUR business reality?
7 Key Take-Aways
@jcaudron
Disruption is real, deal with it!
Disruption
Modeling
Transformation
1. Disruption is happening anyway, often without
your knowing…
@jcaudron
Disruption is real, deal with it!
Disruption
Modeling
Transformation
2. There are methods to understand the
impact and plan for the future
@jcaudron
Disruption is real, deal with it!
Disruption
Modeling
Transformation
3. You can take transformation in your own hands, but you will have to start NOW, in order to stay in the drivers seat!
@jcaudron
4. You’ll need digital leadership throughout the entire
organization
@jcaudron
5. You will need to embrace new culture, policies, rules, methodologies, technology,
processes, attitude, …
@jcaudron
6. You’re no longer too big to fail …
7. still looking for n°7
AllDigitalNow
• we are a digital consulting company
• founded in 2009
• we work for large European clients
• we have a strong vision on the impact of digital and act accordingly
• we are advisors, writers, coaches and entrepreneurs
AllDigitalNow
Our Vision: AllDigitalNow
All businesses will have to do things in
a digital way because that’s what their
clients want.
Even non-digital companies will see
their business be impacted by those
who are digital (clients, competitors,
partners, digital challengers, …).
There is no way around this, the time
of not believing is over.
AllDigitalNow
We make companies understand the long
term impact of digital on their business, what
this means for their future and how they can
take digital transformation in their own
hands.
We create business strategy, concepts and
plans for online, mobile, social, …
We are advisors. We do our job in a
bootstrapped way, mixing high-end strategic
thinking with pragmatic implementation,
through thought leadership and
entrepreneurship.
“AllDigitalNow”1
2
3
Out Now!
• www.digitaltransformationbook.com
• Available in Dutch and English
Functional design, wireframing, RFP, …
Social Media set-up, policy, roles, tools, training…
Ambassadorship
Content Marketing
Strategy
Architecture
Digital Strategy & Concept Development
Digital Transformation Modeling
Step 1: Impact, Vision and Ideas
Step 2: Trendmapping
Step 3: Digital Transformation
DearMedia, Digital Strategy & Transformation
Digital Transformation
——— Dealing with
Digital Disruption ———
June 2015
[email protected] / @jcaudron / +32 475 43 80 98
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