The Death of Big Business
(As We Know It)
How Big Business Used to Work
Then This Happened
Exponential Innovation
Exponential Innovation is hard to predict
Input Becomes Unstable
Tesla was able to leapfrog by utilizing laptop battery
technology in their electrical cars
Material Innovation is no longer a 10% improvement year
over year
Everyone can produce
And demand is no longer
a function of marketing budget
Next Generation of Consumers don’t care about ownership
VS
A well-known car company recently lost $600m, because
social media changed demand for several of their brands in
ways their long-term planning could not foresee.
Both sides of the equation have
changed radically
How Big Business Used to Work
? ?
How did we end up here?
What Large Companies Do
Optimizing for cost, not change
The World Around ERP
...and the Apple App Store didn’t exist in 2007
There are 1.2 million apps in Apple’s App store,
with $20 billion paid to developers.....
Millennials will dominate
the workforce
Social media pervasive in our lives
Soon the whole world will have mobile
Netsuite
Salesforce.com
Workday
A network approach rather than a single database
VS
A New Way to do Business
25 Fortune 500 size customers in 4 years and more
than 500,000 suppliers connected
Network Effects in Business
So what should you do?
Invest in capability to change
Strategic & Tactical
Consolidate your buying power
Be ready to be a new business
every 5 years