disrupt or be disrupted: why digital connectivity matters to b2b companies

WHY DIGITAL CONNECTIVITY MATTERSTO B2B COMPANIES Digital Jam Session Philadelphia / February 28th, 2017

Erich Joachimsthaler, Ph.D./Founder & CEO of Vivaldi/

2

THE INTERNET OF THINGS

VIVALDI

An Explosion of Connected Possibility

3VIVALDI

YEARS OF 1960s – 1970s

Pipeline (Traditional Value Chain) Business

R&D Production Marketing Customer

Automation of individual activities in the value chainStandardization of processesCompetitive advantage: quality at scale

4

Pipeline (Traditional Value Chain) Business

VIVALDI

YEARS OF 1980s – 1990s

R&D Production Marketing Customer

Rise of the internet, ubiquitous connectivityCoordination and integration across individual activities and suppliers, channels, and customersGlobal supply chainCompetitive advantage: differentiation through features

5

Connectivity of EverythingPipeline is hooked up to the platformTechnology evolution from cloud, social and mobile to Internet of Things, AI, quantum computing, etc.Competitive advantage: Not just the product but the platform

VIVALDI

TODAY

Platform Business

Platform Ecosystem

6

MyJohnDeere Platform

VIVALDI

Intelligent farming

7

JOHN DEERE’S 8R / 8RT 24-ROW EXACTEMERGE PLANTER

VIVALDI

• Top speed 10 miles/hour• 80 seeds per second• Tractor has 20 processors• Planter has 77 processors• 6 million lines of code• Sends data to the tractor cab to JDOC (AWS)• Connects tractor operator and remote farm manager• Connects machines with one another• Coordinates work in the field

8VIVALDI

“The ability to have data anywhere, anytime, at a much lower cost, at a much faster speed, and on a much higher scale and level of flexibility provides a significant opportunity for us.”

Patrick Pinkston, former John Deere Vice President

9

JOHN DEERE PLATFORM EVOLUTION

VIVALDI

• Open up platform to others (third-party developers) and connect - Farmers,

- John Deere dealers, - Software companies, - Seed and fertilizer manufacturers- University researchers

• SaaS applications- Climate cloud

• Big data applications- Weather forecasting, plant genomics, and agronomic studies

10

JOHN DEERE VISION

VIVALDI

From selling and servicing big

equipment

To a commitment to those linked to

the land

11

WHAT MAKES A GREAT PLATFORM?

VIVALDI

• Facilitates interactions between parties• Open, third-party developers or ecosystem• Creates value on the top of technology

12

HealthSuite Digital Platform

VIVALDI

Connected Care

13

PHILIPS TARGETS CUSTOMER AND CONSUMER NEEDS ALONG THE HEALTH CONTINUUM

VIVALDI

Source:Philips

14

HEALTHSUITE DIGITAL PLATFORM

VIVALDI

Support for the heathcare consumer’s ecosystem

15

DESIGNED TO ENHANCE DECISION-MAKING

VIVALDI

For both healthcare professionals and consumers by incorporating advanced visualization and decision support analytics

16

INTEGRATING DATA SOURCES FOR DIFFERENT CONTEXTS

VIVALDI

17

PERSONAL HEALTH PROGRAMS

VIVALDI

18

PRO-ACTIVE CARE AT BANNER HEALTH

VIVALDI

19VIVALDI

WHAT MAKES A GREAT PLATFORM?

• Facilitates interactions between parties

• Open, third-party developers or ecosystem

• Creates value on the top of technology

• Creates value for all parties involved (social currency)

• Network effects

20

GoPro Platform

VIVALDI

Exponential Experiences

21VIVALDI

“GoPro helps people capture and share their lives’ most meaningful experiences with others.”

Nicholas Woodman

A SIMPLE CONSUMER EXAMPLE

22

TOTAL DIGITAL CAMERAS SHIPPED PER YEAR

VIVALDI

Source: Camera and Imaging Products Association (CIPA)

23

GOPRO REVENUES AND GROWTH RATES

VIVALDI

24

THE GOPRO PLATFORM (A VIRTUOUS CYCLE)

VIVALDI

GOPRO’S RESULTS

VIVALDI

47% market share in

2015

1,282,169,559 YouTube

Views

16+ Million social media

engagements in 2015

25

26

EXPONENTIAL GROWTH THROUGH NETWORK EFFECTS

VIVALDI

27

SOURCES OF THE NETWORK EFFECT

VIVALDI

• CONNECTIONNetworks become more useful as a user’s connections increase

• CONTENTUsers discover and consume content created by other users

• CLOUDPower users enjoy influence and cloud on the network

28

WHAT MAKES A GREAT PLATFORM?

VIVALDI

• Facilitates interactions between parties

• Open, third-party developers or ecosystem

• Creates value on the top of technology

• Creates value for all parties involved

• Powerful and positive EXPONENTIAL network effects

• Gravitational pull

29

Pipeline (Traditional Value Chain) Business

VIVALDI

THIS IS A BIG PICTURE CHANGE

R&D Production

Marketing

Customer

Value creation is linear and one-way

Platform

Ecosystem

Platform Business

Value creation is two-way and continuous

30

DIGITAL LEADERS FROM NON-TECH SECTORS ARE NOW ALSO BUILDING PLATFORMS

VIVALDI

Source: 2016 Accenture

• Having a platform strategy and the business know-how to exploit it is more important than “owning” an ecosystem.

• By 2018, IDC predicts that more than 50% of large enterprises – and more than 80% of enterprises with advanced digital transformation strategies – will create and/or partner with industry platforms

• IDC predicts that the number of industry clouds will reach 500 or more by 2018, up from today’s 100-plus

Pfizer

Novartis

Merck

Carepass

Cigna

edX

Walmart

American Express

Nasdaq OMX

Schneider

GE

Bosch

ABB

Disney

SONY

Ford

GM

TomTom

31

SOME GUIDELINES

VIVALDI

• What are you solving for? What is the domain? How are you creating exponential value?

• How will we configure the platform? What implications does this have for the culture, business model, processes, leadership, infrastructure, customer experience?

• What is the role of the B2B marketer in value creation for all parties in the ecosystem?

Thank you!

Erich Joachimsthaler/Founder & CEO of Vivaldi/

@ejoachimsthalerej@vivaldigroup.com

33

SOURCES

VIVALDI

• https://www.slideshare.net/AWSAktuell/aws-fallbeispiele-zur-digitalen-transformation-aws-cloud-web-day-fr-mittelstand-und-grounternehmen?qid=40d9fb16-ca56-4872-861f-2e932e4b332b&v=&b=&from_search=3

• https://www.slideshare.net/ForgeRock/2015-identity-summit-philips-case-study-new-healthcare-solutions-and-patient-experiences-made-possible-with-iam?qid=75cdefcf-004f-47c4-9b49-89e1482906da&v=&b=&from_search=1

• https://www.slideshare.net/HealthSPAfi/philips-innovating-in-the-healthcare-continuum-rocco-van-der-berg-philips?next_slideshow=1

• https://www.slideshare.net/AccentureTechnology/platform-economy-tech-vision-2016-trend-3?qid=0e1ec7cd-b8f8-4458-8ab6-0495ae20b069&v=&b=&from_search=7

• https://www.slideshare.net/InfoEcon/platform-shift-how-new-business-models-are-changing-the-shape-of-industry?qid=d66b9f24-f51e-4468-8521-44729f6659d4&v=&b=&from_search=1

• https://www.slideshare.net/sanguit/the-platform-manifesto-16-principles-for-digital-transformation/31-Eventuallyscaling_onan_ecosystem_modelSource_PLATFORM