disruption presentationv2.35
TRANSCRIPT
Defining a Disruptive
Strategy
Executive Management Workshop
Sāo Paulo, Brazil
July 17, 2015
by Anthony DeLima
© Copyright 2015 – All Rights Reserved CARTENIA GROUP
The 5 Hypothesis
Strategic Focus
The Digital Era
Your Culture
Our Approach
Q&A
© Copyright 2015 – All Rights Reserved
“Understanding The Journey”
CARTENIA GROUP
Hypothesis #1
I am the customer, I am in control, I make choices, and I manage my
journey as your customer. [availability, pricing, characteristics, delivery, service]
© Copyright 2015 – All Rights Reserved CARTENIA GROUP
Digital business transformation is driven by four critical factors;
Social Media
Everything Real-time Growth of Mobile Technology
Highly Informed Customers
Hypothesis #2
© Copyright 2015 – All Rights Reserved CARTENIA GROUP
Defining a Digital strategy is not an end-goal - it’s a continuous journey. It’s the result of learning more about
the relationship between customer behavior and technology and to
deliver disruptive value.
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
Hypothesis #3
Best-in-class companies leverage customer behavior to continuously mold their value proposition while
creating new ways to connect with customers across channels.
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
Hypothesis #4
Defining a Digital strategy has a little to do with technology but a lot
more with understanding real time customer needs and delivering new
value in a B2C, or B2B model.
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
Hypothesis #5
Where is the focus? What are your priorities? What’s the end-game?
Revisiting the Value-creation Levers
© Copyright 2015 – All Rights Reserved
GROWTH
RETURN ON CAPITAL
RISK MANAGEMENT
CARTENIA GROUP
© Copyright 2015 – All Rights Reserved
GROWTH?
RETURN ON CAPITAL?
MANAGING RISK?
CARTENIA GROUP
InnovaIon & New Products
ReputaIon Management
Digital Sales & MarkeIng
What is your focus?
Understand the nature of your competitive culture, then
evaluate the changes.
What’s your competitive culture
Emulate market leader’s Strategy & TacIcs
Re-‐segment the market to create a niche
Create and pursue a unique advantage
Tradi&onal game rules
New game rules
En&re Market
Niche
Whe
re to
com
pete
How to compete
Disrupt industry rules to exploit a unique advantage
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
Accumulated
Total Returns
Expected Window of Returns
How quickly can changes be adopted – what are the areas that
will impede rapid change.
Appetite for Speed
High Growth 12-‐24 months
Quick Hits 0-‐12 months
Exponen&al Growth 24-‐36 months Current
Business Generate today’s cash flow
Today’s revenue growth + tomorrow’s cash flow
New value creaIon + new product/service dimensions
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
1. Doing something dramatically different and significantly better.
2. Define who will benefit from the massive disruption.
3. Provide TOTAL customer control.
4. Identify measureable success.
5. Identify small innovation teams.
6. Exploit the 4 fundamental human needs: comfort, variety, connection, uniqueness.
7. Build a digital bridge into your product.
8. Not just better, faster, cheaper but dramatically different.
9. Think like an outsider.
10. Listen to customers on what problems to solve.
Critical CONSIDERATIONS in creating disruption
Creating Disruption
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
COMFORT VARIETY CONNECTION UNIQUENESS
Customer experience, product/service innovation,
fulfillment, corporate identity.
How the Digital era is disrupting industries
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
Customer Experience
Products & Services
Marke&ng & sales
Distribu&on & Fulfillment
Risk Op&miza&on
Enhanced Control
• Seamless Omni-‐channel experience
• ConInuously evolving service proposiIons
New digital products & services
Omni-‐channel markeIng & sales
• Full STP processing • Automated servicing
• Improved customer targeIng
• Improved risk profiling
• Real-‐Ime Big-‐Data analyIcs
• Beaer decision-‐making
Creates the opportunity to augment existing product/services base with
new capabilities.
“IoT” Enabling Disruption
New Business models
Real-‐Ime InformaIon on mission-‐criIcal
systems
Efficient, Intelligent operaIons
Global Visibility
DiversificaIon of revenue streams
• New Value streams • Speed Ime to market • Respond rapidly to customer needs
• Access informaIon from autonomous endpoints
• Smart decision-‐making (i.e. pricing, logisIcs, sales, support Improved service
Beaer quality
MoneIze new services on top of tradiIonal ones
More efficient supply-‐chain management
Connec&vity w/Customers
Innova&on of products, & business models
Automa&on of manual acIvity
Improved Decisions,
relying on Big-‐Data analyIcs
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
How does a customer engage and how you are perceived?
Understanding the customer Journey
1
2
3
4
5
awareness'
considera,on'
purchase'
reten,on'
advocacy'Blog'6'Social'Media'6'Newsle:ers''
FAQs,'Knowledge'base,'Content'repositories'
Website,'store,'eCommerce,'consider'peers,'set'criteria'
Store,'website,'word'of'mouth'
Online'ads'–'email,'Social'Ads,'Reviews,'Blog,'Media'
Community'Forum,'short6list'vendors'
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
What are the underlying technology architecture requirements.
What Technology must deliver
CARTENIA GROUP
Content/Unstructured Data
Operational Data-Stores
Data-Marts & Analytics
Application/business logic, transformation, routing, connectivity and distribution services
Asynchronous Secure Messaging JAVA Messaging Services (JVS)
ENTERPRISE SERVICES BUS (MIDDLEWARE LAYER)
Transformation (XSLT)
SOAP/HTTP Connector (Web Serv.)
SOAP/HTTP Connector (.NET)
JMS J2ee
Legacy Applications
Connectors (part of ESB)
SAP Connector
Real Time BI & Text Analysis
Business Rules
Event Processing
BPM & Workflow
BI-Spoke Development
© Copyright 2015 – All Rights Reserved
CONFIRMING VEHICLES
EXEXUTION APPROACH
END-‐STATE THINKING
BUILDING FOUNDATION
DEFINING VISION &
LEADERSHIP
MAPPING CUSTOMER JOURNEY
SETTING VALUE GOALS
SETTING FINANCIAL GOALS
BUSINESS
TECHNOLOGY
GOVERNANCE TECH ARCHITECTURE
CORPORATE STRUCTURE
VALIDATING SERVICES & DRIVERS
BRAND UPDATE
KEY INITIATIVES
TIMING & COST
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
Approach
KEY STEPS: 1. Defining Vision & Transforma&on Leadership
a) Who will lead the transformaIon b) Who will be part of the team
2. Understand the Customer Journey
3. Valida&ng the Service Drivers a. Underlying service requirements B2C & B2B b. CharacterisIcs c. DifferenIators d. What are the disruptors
4. SeZng the Value levers: a. Growth b. Return on capital c. Managing risk
5. SeZng Financial goals – how will returns be obtained a. Low cost/scale b. Premium pricing/brand c. Premium pricing/IP
6. ValidaIng the market arena
END
STA
TE T
HIN
KIN
G
CARTENIA GROUP
Awareness Considera&on Purchase Reten&on Advocacy
© Copyright 2015 – All Rights Reserved
“Establish a Vision of where we want to be based on the understanding of
key customer drivers”
KEY STEPS: 1. How will we get there from a Business perspec&ves
a) Partnerships b) Joint-‐ventures c) M&A d) Alliances
2. How will we get there from a Technology perspec&ve a) Internal development b) Outsourcing/Co-‐Sourcing c) M&A d) Join-‐ventures e) Alliances
CO
NFI
RM
ING
VEH
ICLE
S
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
“How do we get to the end-‐state – do we build it ourselves or do we
leverage third par?es”
BUIL
DIN
G F
OU
ND
ATI
ON
CARTENIA GROUP
KEY STEPS: 1. Corporate & Legal structure
a) DomesIc b) InternaIonal
2. Governance structure a) Centralized b) Distributed c) Roles & ResponsibiliIes d) DefiniIon & measurement of KPIs
3. Technology architecture a) ApplicaIon b) Services c) Data d) IdenIty management e) Plamorm f) Networking g) Overall standards
© Copyright 2015 – All Rights Reserved
“What is the underlying business and technical founda?on that must be in
place to achieve the end-‐state?”
EXEC
UTI
ON
SEQ
UEN
CE
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
KEY STEPS: 1. BRAND UPDATE
a. Tone b. Message c. Content d. Channel approach
2. Key Transforma&on Ini&a&ves a. Projects in three stages: “Quick-‐Hit”, “High-‐Growth”, “ExponenIal Growth” b. Resourcing model; internal, contract labor, outsourced
3. Timing & cost a) Final sequencing b) Delivery Iming and speed c) Delivery approach d) Line item cosIng & financial return
“What is the right sequence to execute transforma?on based on the company’s opera?onal, financial and organiza?onal constraints to adopt proposed changes?”
Business Process Tuning
Client Value
New Service Scope
Business Process Tuning
Business Process Advisory Services
Enabling Products
(Tech enabled)
World-‐class Delivery
OrganizaIon
Enabling Products
(Tech enabled)
Joint-‐ Opera?onal Process
Improvement
New Service
‘SOLUTION’ Process, Products
& People
What are the B2B scenarios?
B2B Opportunities to consider
CARTENIA GROUP © Copyright 2015 – All Rights Reserved
Heat-Maps provide visibility on the Services & Technology enablers
© Copyright 2015 – All Rights Reserved
Service HEAT-‐MAP
Technology HEAT-‐MAP
CARTENIA GROUP