create an authentic experience in the peer-to-peer economy · digital accelerates business model...

Create an Authentic Experience in the Peer-to-Peer Economy

Featuring technology expert R "Ray" Wang, Founder, Chairman, and Principal

Analyst at Constellation Research Inc. and author of Disrupting Digital Business:

Sponsored by

JUNE 5, 2015

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JUNE 5, 2015

Today’s Speaker

@HBRExchange | #HBRwebinar

Featuring technology expert R "Ray" Wang, Founder,

Chairman, and Principal Analyst at Constellation Research

Inc. and author of Disrupting Digital Business: Create an

Authentic Experience in the Peer-to-Peer Economy

JUNE 5, 2015

@HBRExchange | #HBRwebinar

JUNE 5, 2015

Today’s Speaker

Featuring technology expert R "Ray" Wang, Founder,

Chairman, and Principal Analyst at Constellation Research

Inc. and author of Disrupting Digital Business: Create an

Authentic Experience in the Peer-to-Peer Economy

@rwang0

Creating An Authentic Experience In

The Peer-to-Peer Economy

Disrupting Digital Business In The Post Sales, On

Demand, Attention Economy Is Here

June 5th, 2015

R “Ray” Wang (@rwang0)

Principal Analyst & Chairman

52% of the Fortune 500 firms since 2000 are gone

Digital creates winner takes all marketsOverall Market Share Percentage of Profits

“A digital divide exists between the organizations who have built digital business models and everyone else.” (2013)

Lessons Learned

#1: Digital disruption is more than just a technology shift. It’s about transforming business models and how we engage.

Tech convergence powers digital disruption

Mobile Social Cloud Big Data IOT 3D Printing

Design Thinking Inspired User Experience

Social creates new verbs and experiences

that bring people and networks together

Twitter – I need to pee

Facebook – I pee’d

Google+ - More pee in circles

FourSquare – I’m peeing here

Pinterest – My pee scrapbook

Instagram – My pee in sepia

LinkedIn – Hire me to pee

Path – Watch me pee privately

You Tube – Watch me pee

Vine – Watch my pee loop

SnapChat – I have no proof I pee’d

Jelly – Does this look like pee?

What’s app – I told you I pee’d

Meerkat – Watch me pee live

Tech convergence powers digital disruption

Mobile Social Cloud Big Data IOT 3D Printing

Design Thinking Inspired User Experience

#2: We move from selling products and services to keeping brand promises in an attention economy.

Digital accelerates business model

transformation• Product companies give away

product for service revenues.• Service based businesses sell

experiences at varying price points and service levels.

• Experience based businesses selling business models

• Business model companies sell peace of mind.

Disney fully applies mobile and data as the

gateway to new customer experiences

"You're not competing with another company, you're really competing for time and attention" (2010)

#3: New unit cost pricing models enable disruptive business models to thrive.

Dollar shave club shows what happens when

you change how people buy

#4: Data is the foundation of digital business. Every touch point, every click, every digital exhaust is relevant insight.

90% of data created in last 2 years 2014, 1 year 2015, 1 sec 2020

80 Billion sensors in devices by

100M viral connections

per minute by 2020

Data and content explosion goes exponential

Data Sources

Information & Orchestration

Insight

Decisions & Actions

• Structured• Semi-structured• Unstructured

• Physical• Virtual• Machine• Contextual

• Performance• Deduction• Inference• Prediction

• Next best action• Prevention• Suggestion• No action

Use big data context to improve analytical

insight to make better decisions

#5: If 20 % of your revenue is not an insight stream by 2020, you won’t have a digital biz model

The future is digital business models built on

insight

Insight based differentiation

Drive demand

Create new service offerings

Improve c-sat

Drive lower cost models

Insight brokering

Raw information

Analysis and insights

Benchmarking

Insight based business platforms

Marketplaces

Deal making

Advertising

#6: You can be the content, the network and the arms dealers. The digital winners will figure out how to vertically integrate all three

Four companies control the network from

content and commerce to consumer device

Videos

VS. ShippingVS.Commerce

Cloud Computing

VS.DevicesVS.

#7: Digital artisans emerge as organization’s with the best math and design will dominate in a winner takes all world.

GE Power knows when a transmission line

will go down 8 to 10 days before it does

IOT Will Emerge Into 5 Levels Of Maturity

Level 5: Networked Ecosystems

Level 3: Platforms Level 2: Engineered StacksLevel 1: Devices, Sensors,

and Connections

Level 4: Brokerages

We must invest in digital artisans

#8: People to people (P2P) democratizes distribution which strips out friction and transaction costs

Tesla changed the rules of low volume

production, eco luxury & direct to consumer

Etsy democratizes distribution of creatives

Lending club brings banking w/o banks

TaskRabbit creates an on-demand access

to trusted services

#9: Design for customer segments of one

Can you support a customer segment of one

or mass personalization at scale?

Analog Systems

Pre 1950’s

Reliability and scalability

Massive machine scale

Sweat based

Limited

Governed

Physical locations

Word of mouth

Dumb devices

Assembly line technologies

Digital delivers mass personalization at scale

Elements

Design point

Challenge

User Exp

Comm Style

Impact and reach

Info mgmt

Intelligence

Examples

Transactional Systems

1950s+

Continuous improvement

Massive computing scale

Computing based

Broadcast dictatorial

Just in time

Departmental/ corporate silos

Highly structured

Hard coded

Payroll, ERP, CRM

EngagementSystems

Sense and respond

Massive social scale

Interactive

Conversational

Real time

Interconnected

Loosely structured knowledge

Deterministic business rules

Social and collaboration

Mass Personalized

Systems

Intention driven

Massive individual scale

Personalized

Sentient

Space time contiuum

P2P networks

Self aware embedded knowledge

Predictive

Decision support, VRM

ExperientialSystems

Agile and flexible

Massive contextual scale

Bionic/Human APIs

Role tailored

Right time

Segmented value chains

Immersive streams

Probabilistic pattern based

Ad networks, gamification

#10: We serve 5 generations of customers & workers, by digital proficiency, not by age

5 generations of digital workers & customers

not by age, but by digital proficiency

Digital Proficiency

1. Digital Natives

comfortable in engaging all digital channels 2. Digital

Immigrantscrossed the chasm into the digital world, forced into engagement with digital channels

3. Digital Voyeurs

Recognize the shift to digital but not ready to be active yet themselves

4. Digital Holdouts

Resisting the shift to digital, ignoring the impact

5. DigitallyDisengaged

Understand digital but avoiding

engagement on purpose, often for

privacy reasons

Disrupting Digital Business

“Digital Darwinism is unkind to those who wait”

- (@rwang0)

Don’t be caught in the disruption!

Cautious Adopters (50%) Market Leaders (5%)

Fast Followers (15%)Laggards (30%)

Proactive

Reactive

• Can we transform our business models?

• What outcomes can we transform?

• How do we go to market first with this?

• How do we make this easy to consume?

• Will this truly differentiate our offerings?

Understand your organization’s digital DNA

• What happens if our competition goes first?

• How long can we wait to adopt?

• Can we learn from first mover mistakes?

• How do we scale this faster and cheaper?

• Do we really need to do this?

• Can we quantify the market demand?

• Can we wait for this to commoditize?

• Is this more than a trend?

• What type of integration is required?

• Are there security and safety risks?

• Do we really need to disrupt our business?

• Will customers really want this?

• How long can we wait for commoditization?

• How much longer can we put this off?

• Has the trend moved beyond mainstream?

The reality of how we allocate

Strategic differentiation

Revenue growth

Operational efficiency

Regulatory compliance

What we really need to do is flip the pyramid!

Strategic differentiation

Revenue growth

Operational efficiency

Regulatory compliance

In the new world IT – business collaboration

is key to digital success

Simple

Scalable

SexyBu

Secure

Sustainable

BusinessModels

Value Networks

Org Structures

Disruptive Technology

Business runs hard as IT scales in step

function

IT scaling

Wave 1 Wave 2 Wave 3 Wave 4 Wave 5

“We are living in a post sale, on demand, attention economy. Are you able to support this new business model?” - @rwang0

Five steps to disrupting digital business

Design new experiences and outcomes

Develop a culture of digital DNA

Apply new business models and technologies to existing infrastructure

Move from gut to data driven decisions

Co-create and co-innovate with new partners

Thank you

R “Ray” Wang

650.918.6619R@ConstellationR.com

Twitter: @rwang0

Blog: www.raywang.org

Questions?Type your question in the chat box in the lower left corner of your screen and click “send”

Thank you for joining us!

This presentation was made possible by the generous support of Accenture.

Learn more at accenture.com.

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