Brilliant Digital Talk : Demystifying Digital Disruption

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<ul><li><p>DEMYSTIFYING DIGITAL DISRUPTIONMay 09th, 2016@theVENUE18 Office Park 15th floor, TB Simatupang, Jakarta</p><p>DIGITAL TALK Episode 2</p><p>Brilliant Digital Academy proudly present:</p></li><li><p>Speakers</p><p>Lyra PuspaCEO &amp; FounderBrilliant Digital Academy@Lyra_Puspa</p><p>Bari ArijonoKetua Umum ADEI(Asosiasi Digital Entrepreneur Indonesia)@Bari_Arjon</p><p>Angky Yan PramudyaHead of</p></li><li><p>Go Social!</p><p></p><p></p><p>Brilliant Digital</p><p>Brilliant Digital Academy</p></li><li><p>Today session is being recorded. I know what youre thinking. Dont worry. We will give you the URL to </p><p>access the entire video. Simply just send an email to with subject I WANT THIS RECORDED!</p><p>We will give you what you want, and of course, the presentation slides as a token (youre welcome).Try to get relax, like we know youre going to, and enjoy the session ...</p><p>Regards,The man behind the camera</p></li><li><p>Round 2: Be a disruptor, dont be disrupted!By Bari Arijono</p><p>Round 1: Disruptors mind. Revealed.By Angky Yan Pramudya</p><p>Round 3: Digital Talk Wrap UpBy Lyra Puspa</p><p>Agenda</p></li><li><p>Say what?</p></li><li><p>A disruptive innovation is an innovationthat creates a new market and valuenetwork and eventually disrupts an existingmarket and value network, displacingestablished market leaders and alliances</p><p>1995Clayton M. Christensen</p><p>Professor of Business Administration at the Harvard Business School (HBS), having a joint appointment in the Technology &amp; Operations Management and General Management faculty groups. Christensen is also a co-founder of Rose Park Advisors, a venture capital firm, and Innosight Ventures, a management consulting and investment firm specializing in innovation.</p><p>First thing first, meet the man who first coined the beginning term</p></li><li><p>Pe</p><p>rfo</p><p>rman</p><p>ce</p><p>Time</p></li><li><p>Welcome to the Fourth Industrial Revolution!</p><p>EE Times Europe: Realizing Industry 4.0: Essential System Considerations, 2014</p></li><li><p>39 %</p><p>43 %</p><p>47 %</p><p>50 %</p><p>51 %</p><p>52 %</p><p>52 %</p><p>53 %</p><p>57 %</p><p>57 %</p><p>61 %</p><p>64 %</p><p>72 %</p><p>0 10 20 30 40 50 60 70 80</p><p>Industrial</p><p>Asset wealth management</p><p>Health care</p><p>Education</p><p>Business &amp; professional services</p><p>Non Profit</p><p>Consumer products</p><p>Insurance</p><p>Technology</p><p>Retail</p><p>Consumer financial services</p><p>Telecom</p><p>Media</p><p>Executives Who Anticipate Moderate or Massive Digital Disruption in the Next 12 Months, by Industry</p><p>(Source: Digital Pulse 2015 by Russell Reynolds Associates)</p><p>Not a warm welcome, to be honest </p></li><li><p>The Digital Disruption has Already HappenedWorlds largest taxi company owns no taxis (Uber, Grab)</p></li><li><p>The Digital Disruption has Already HappenedLargest accomodation provider owns no real estate (Airbnb)</p></li><li><p>The Digital Disruption has Already Happened Largest phone companies own no telco infra (Skype, WeChat)</p></li><li><p>The Digital Disruption has Already Happened</p><p>Worlds largest movie house owns no cinemas (Netflix)</p></li><li><p>Digital Disruption? </p><p>Easy. Im gonna make </p><p>them a product</p><p>they cant</p><p>REFUSE.</p></li><li><p>Round 2: Disruptors mind. Revealed.By Angky Yan Pramudya</p><p>Round 1: Be a disruptor, dont be disrupted! By Bari Arijono</p><p>Round 3: Digital Talk Wrap UpBy Lyra Puspa</p></li><li><p>FUTURE OPPORTUNITY</p><p>BARI ARIJONOKETUA UMUM</p></li><li><p>Let me introducewho am i</p></li><li><p>Foreword</p><p>We are in the midst of a major technology revolutionspecifically a digital revolutionwith digital now dominatingevery sector of the economy. And we are seeing an importantnew shift as the technology revolution begins to put peoplefirst. To put it simply, as businesses become digital, theirpeople and cultures must become digital, too.</p></li><li><p>Platforms Shared of Mobile Web</p><p>Based on @platform s shared of total global mobile web page requests</p></li><li><p>Active Users by Social Platform</p><p>In million</p></li><li><p>Active E-Commerce Shopper</p><p>% of national population who bought online</p><p>Indonesia#25 with 27%</p></li><li><p>What should we DO</p><p> Transform your Business (DX)</p><p> Built Digital Business for Change (DB)</p><p> Data Driven first (DT)</p><p> Disrupted is a must (DS)</p><p> Digital Risk awareness (DR)</p><p>WIN LOCALLYGO GLOBAL</p></li><li><p>Why do you need DX</p><p>To understand how the Digital Technology ofCloud, Mobile, Social, and Big Data are affecting businesses </p><p>Mobile is enabling new business scenarios Cloud computing is driving business agility Big data is helping companies innovate Social channels are transforming core business processes</p><p>Digital transformation is occurring rapidly at a majority of public and private sector organizations.</p></li><li><p>Biggest Impact of DT</p><p> Improving customer service 53% Increasing productivity 52% Developing new services 50% Business models 42% Products 41% Increasing revenues 40% </p><p>Forecast to grow significantly increasing revenues developing new business models improving market share</p><p>with a strong vision and mature processes for digital transformation were more profitable on average, had higher revenues, and achieved a bigger market valuation than competitors.</p></li><li><p>The business is digital, so the organization, its people and its culture must now become digital too</p><p>DB Culture Shock</p><p>This global digital economy accounted for 22 percent of the worlds economy in 2015. And its rapidly growing, as we forecast those numbers to increase to 25 percent by 2020, up from 15 percent in 2005.</p></li><li><p>Digital Means People too</p><p>Collaboration Companies no longer just serve customer</p><p>Coopetition No longer just compete with rivals</p><p>Sinergy No longer limited by industry boundaries</p><p>Winners will create corporate cultures where technology empowers people to evolve, adapt, and drive change. The mantra for success </p><p>is PEOPLE FIRST</p></li><li><p>Key Take Away</p><p> Penjualan online Indonesia mencapai USD 1,1 miliar, lebih tinggi dariThailand dan Singapura.</p><p> Penjualan e-commerce di Indonesia hanya menyumbang 0,07% daritotal perdagangan retail</p><p> Rata-rata pertumbuhan tahunan (CAGR) penjualan online di Indonesia selama 2014-2017 sebesar 38%, </p><p> Indonesia sebagai raja e-commerce ASEAN tumbuhnya pengguna internet yang mencapai 88,1 juta. 100 juta di akhir</p><p>2016 pengguna sosial media 79 juta jumlah penduduk 259.1 juta jiwa</p></li><li><p>BARI ARIJONO</p><p>Bari Arijono</p><p></p><p>08128899646</p><p>www.adei.idTHANK YOU</p></li><li><p>Round 2: Disruptors mind. Revealed.By Angky Yan Pramudya</p><p>Round 1: Be a disruptor, dont be disrupted! By Bari Arijono</p><p>Round 3: Digital Talk Wrap UpBy Lyra Puspa</p></li><li><p>E-commerce OpportunitiesIn Indonesia</p><p>Disruptive Innovations </p><p>Angky Yan Pramudya</p><p>Head of Marketing at</p></li><li><p>What is disruptive Innovations1</p><p>Key Conclusions : Where does E-Commerce go from here?</p><p>Five disruptive forces</p><p>Segment Analysis</p><p>2</p><p>3</p><p>4</p><p>Disruptive Innovations E-CommerceTopics :</p><p>5</p><p>Indonesias EC Market Share </p></li><li><p>Where does E-Commerce go from here?</p><p>Key Conclusions</p></li><li><p>What is Disruptive InnovationsDisruptive Innovations E-Commerce</p><p>A disruptive innovations is an innovations that helps create a new market and value network, and eventually disrupts </p><p>an existing market and value network (over a few years or decades), displacing an earlier technology . The terms is </p><p>improve a product or services in ways that market does not expected, typically first by designing for a different set of </p><p>consumers in a new market and later by lowering prices in the existing market. (Wikipedia)</p><p> Disruptive innovations is NOT the same as innovations, in general.</p><p> Very often, No new technology is involved, but could be technology based.</p><p> Could be, and very often is, based on disruptive, new business model</p><p> The business model changes the economics of the entire industry segment</p><p> It disrupts the business structure of that industry segments </p><p> Improvement in the prevailing solution exceed mainstream needs</p><p> Over time, the disruptive innovations</p><p> Improves in performance exceeds that of the previous prevailing solutions </p><p> Meets the needs of mainstream customers better than the previous solutions</p></li><li><p>E-Commerce still has a long runway for growthE-Commerce share of total retail sales in Indonesia</p><p>Retail sales disruption is a trend that may actually accelerate over the next five years in Indonesia</p><p>E-Commerce sales could surpass $11 Billion by 2018</p><p>For legacy services, there is both good news and bad news, depending on the defensible nature of product</p><p>E-Commerce Opportunity is Large</p><p>Population</p><p>Digital Buyer</p><p>eMarketer; InsideRetail Hong Kong; Morgan Stanley</p><p>252 M 255 M 258 M 262 M 265 M 269 M</p><p>14 M 22 M 30 M 40 M 50 M 61 M</p></li><li><p>Where does E-Commerce go </p><p>from here?</p><p>Key Conclusions</p></li><li><p>Key Conclusions : Where Does E-Commerce Go From Here?Some categories remain resistant to change</p><p> In the long-term, scale wins, and the right fulfilment infrastructure is the means to achieve scale.</p><p> Nation-wide fulfilment networks are highly capital intensive and represent a material barrier for competition</p><p> Some legacy services are either building their own fulfilment centers, or leveraging retail store to fulfil orders.</p><p>Fulfilment investment drive shipping cost savingsLazada, Blibli &amp; Mataharimall may continue leveraging shipping costs as it improves last mile logistics</p><p>Key Conclusions : Where Does E-Commerce Go From Here?Fulfillment infrastructure is critical</p><p>Fashion, Gadget &amp; Electronics have the highest online penetrations, with books at the lowest</p><p> Branded fashion &amp; beauty retailers appear relatively impervious to E-Commerce disruption</p><p> Fashion companies, such as Delami brand, control both manufacturing and distribution of their products, are also insulted</p><p>Tech in Asia; MarkPlus; Marketeers</p></li><li><p>Key Conclusions : Where Does E-Commerce Go From Here?</p><p>Mobile E-Commerce : A Promising opportunity</p><p>Key Conclusions : Where Does E-Commerce Go From Here?Third-party marketplaces can prosper</p><p>Tech in Asia; MarkPlus; Marketeers</p><p> 3P Marketplaces allow an infinitely scalable selection of merchandise</p><p> 3P can either be stand alone business (Blanja, Tokopedia, Bukalapak) or complementary business (Lazada, Elevania)</p><p> The success of 1P vs 3P varies by customers segmentation</p><p> Mobile sales can offer customers additional convenience, and be incremental in nature</p><p> Simple yet sophisticated apps are important</p><p> Mobile also benefits legacy services by offering services clerks more real time information's</p><p>Online devices most frequently used for online shopping</p><p>Mobile phone internet users penetration</p></li><li><p>Five disruptive forces</p></li><li><p>There are five disruptive forces in E-Commerce</p><p>Price</p><p>Consumers like to buy products at the lowest </p><p>price possible</p><p>Selection Cost StructureConvenience Distribution</p><p>No Constraint of Shelf Space</p><p>EC Offers accelerated delivery programs and </p><p>mobile shopping</p><p>Merchants can easily initiate nation-wide </p><p>distribution</p><p>At scale, EC benefits from sales marketing </p><p>efficiency</p></li><li><p>Segment Analysis</p></li><li><p>Summary of Key TakeawaysE-Commerce in Indonesia</p><p>E-Commerce needs to close the trust Gap</p><p>1</p><p>2</p><p>3</p><p>4</p><p>5</p><p>Over the next five years, payment, logistics and fulfilment innovation should determine the level of disruption of traditional retail.</p><p>Structural and socioeconomic demographics determine the company-specific strategy an E-Commerce retailer will have to lead with in a specific market; in Indonesia, fulfilment is crucial (for 1P or B2C)</p><p>Investments that improve an E-Commerce retailers ability to offer low prices, broad selection and increased convenience will likely lead to higher sales growth, albeit at a potentially lower margin</p><p>Pursuit of value and convenience is universal motivations that continues to drive E-Commerce</p></li><li><p>Thank you!its still Day One for E-Commerce in Indonesia</p></li><li><p>Q&amp;A Session</p></li><li><p>Round 2: Disruptors mind. Revealed.By Angky Yan Pramudya</p><p>Round 1: Be a disruptor, dont be disrupted! By Bari Arijono</p><p>Round 3: Digital Talk Wrap UpBy Lyra Puspa</p></li><li><p>Disruption is not about doing BETTER, its about doing it DIFFERENTLY</p></li><li><p>Disruption is not about DIFFERENTIATION, its about CREATING NEW </p></li><li><p>Disruptors makes the established leader NOT WORSE, just IRRELEVANT</p></li><li><p>Disrupt yourself first, then disrupt the world!</p><p>STEVE JOBS</p><p>Macintosh</p><p>Apple II</p></li><li><p>Thanks.</p></li></ul>