create an authentic experience in the peer-to-peer economy · digital accelerates business model...
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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:
Create an Authentic Experience in the Peer-to-Peer Economy
Sponsored by
JUNE 5, 2015
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JUNE 5, 2015
Today’s Speaker
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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: Create an
Authentic Experience in the Peer-to-Peer Economy
JUNE 5, 2015
@HBRExchange | #HBRwebinar
Create an Authentic Experience in the Peer-to-Peer Economy
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
© 2010 - 2015 Constellation Research, Inc. All rights reserved.
TM
@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
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 8
52% of the Fortune 500 firms since 2000 are gone
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 9@rwang0
Digital creates winner takes all marketsOverall Market Share Percentage of Profits
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 10@rwang0
“A digital divide exists between the organizations who have built digital business models and everyone else.” (2013)
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 11@rwang0
Lessons Learned
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 12© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#1: Digital disruption is more than just a technology shift. It’s about transforming business models and how we engage.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 13@rwang0
Tech convergence powers digital disruption
Mobile Social Cloud Big Data IOT 3D Printing
Design Thinking Inspired User Experience
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 14@rwang0
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
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 15@rwang0
Tech convergence powers digital disruption
Mobile Social Cloud Big Data IOT 3D Printing
Design Thinking Inspired User Experience
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 16© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#2: We move from selling products and services to keeping brand promises in an attention economy.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 17@rwang0
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.
17
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 18
Disney fully applies mobile and data as the
gateway to new customer experiences
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 19@rwang0
"You're not competing with another company, you're really competing for time and attention" (2010)
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 20© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#3: New unit cost pricing models enable disruptive business models to thrive.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 21@rwang0
Dollar shave club shows what happens when
you change how people buy
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 22© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#4: Data is the foundation of digital business. Every touch point, every click, every digital exhaust is relevant insight.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 23@rwang0
90% of data created in last 2 years 2014, 1 year 2015, 1 sec 2020
80 Billion sensors in devices by
2020
100M viral connections
per minute by 2020
Data and content explosion goes exponential
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 24@rwang0
Data Sources
Information & Orchestration
Insight
Decisions & Actions
Tech
no
logy
D
rive
n
Lin
e o
f B
usi
nes
s D
rive
n
• 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
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 25© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#5: If 20 % of your revenue is not an insight stream by 2020, you won’t have a digital biz model
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 26@rwang0
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
© 2011 - 2013 R Wang & Insider Associates, LLC. All rights reserved.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 27© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#6: You can be the content, the network and the arms dealers. The digital winners will figure out how to vertically integrate all three
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 28@rwang0
Four companies control the network from
content and commerce to consumer device
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
VS.
Videos
VS. ShippingVS.Commerce
Cloud Computing
VS.
Media
VS.DevicesVS.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 30© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#7: Digital artisans emerge as organization’s with the best math and design will dominate in a winner takes all world.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 31@rwang0 31
GE Power knows when a transmission line
will go down 8 to 10 days before it does
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 32@rwang0
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
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 33@rwang0
We must invest in digital artisans
Authentic |Relevant |Transparent| Intelligent Speedy | Artistic |Non-conformist
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 34© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#8: People to people (P2P) democratizes distribution which strips out friction and transaction costs
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 35@rwang0
VS.
Tesla changed the rules of low volume
production, eco luxury & direct to consumer
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 36@rwang0
Etsy democratizes distribution of creatives
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 37@rwang0
Lending club brings banking w/o banks
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 38@rwang0
TaskRabbit creates an on-demand access
to trusted services
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 39© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#9: Design for customer segments of one
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 40@rwang0
Can you support a customer segment of one
or mass personalization at scale?
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 41@rwang0
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
Circa
Design point
Challenge
User Exp
Comm Style
Speed
Impact and reach
Info mgmt
Intelligence
Examples
© 2011 - 2014 R Wang & Insider Associates, LLC. All rights reserved.
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
2000+
Sense and respond
Massive social scale
Interactive
Conversational
Real time
Interconnected
Loosely structured knowledge
Deterministic business rules
Social and collaboration
Mass Personalized
Systems
2015+
Intention driven
Massive individual scale
Personalized
Sentient
Space time contiuum
P2P networks
Self aware embedded knowledge
Predictive
Decision support, VRM
ExperientialSystems
2010+
Agile and flexible
Massive contextual scale
Bionic/Human APIs
Role tailored
Right time
Segmented value chains
Immersive streams
Probabilistic pattern based
Ad networks, gamification
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 42© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
#10: We serve 5 generations of customers & workers, by digital proficiency, not by age
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 43@rwang0
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
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 44© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
Disrupting Digital Business
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 45@rwang0
“Digital Darwinism is unkind to those who wait”
- (@rwang0)
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 46@rwang0
Don’t be caught in the disruption!
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 47@rwang0
Cautious Adopters (50%) Market Leaders (5%)
Fast Followers (15%)Laggards (30%)
Incr
emen
tal
Tran
sfo
rmat
ion
al
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
© 2011 - 2014R Wang & Insider Associates, LLC. All rights reserved.
• 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?
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 48© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
The reality of how we allocate
Brand
Strategic differentiation
Revenue growth
Operational efficiency
Regulatory compliance
© 2011 - 2014 R Wang & Insider Associates, LLC. All rights reserved.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 49© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
What we really need to do is flip the pyramid!
Brand
Strategic differentiation
Revenue growth
Operational efficiency
Regulatory compliance
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 50@rwang0
In the new world IT – business collaboration
is key to digital success
Simple
Scalable
SexyBu
sin
ess
Nee
ds
IT R
equ
irem
ents
© 2011 R Wang & Insider Associates, LLC. All rights reserved.
Safe
Secure
Sustainable
BusinessModels
Geos
Value Networks
Org Structures
Disruptive Technology
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0 51© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0
Business runs hard as IT scales in step
function
© 2011 - 2012 R Wang & Insider Associates, LLC. All rights reserved. Time
Rat
e o
f In
no
vati
on
IT scaling
Wave 1 Wave 2 Wave 3 Wave 4 Wave 5
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 52@rwang0
“We are living in a post sale, on demand, attention economy. Are you able to support this new business model?” - @rwang0
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 53@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
54
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1
© 2011 - 2014 R Wang & Insider Associates, LLC. All rights reserved.
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. 54@rwang0
Thank you
R “Ray” Wang
Twitter: @rwang0
Blog: www.raywang.org
© 2010 - 2015 Constellation Research, Inc. All rights reserved. @rwang0© 2010 - 2015 Constellation Research, Inc. All rights reserved. www.ConstellationR.com
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JUNE 5, 2015