harnessing the hurricane - melbourne cshe...all cxos coos 66% 50% 43% 32% 25% 24% 46% 7 ©2015 ibm...
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Harnessing the HurricaneHow Can Higher Education Ride the Storm?
©2015 IBM Corporation2
A small group of leading innovators across industries consistently outperform their competitors: these are the Torchbearers
Torchbearers
24%of the total population are Leading Innovators
20%of Leading Innovators areOutperformers; thus
5%of the total populationare Torchbearers
*Peer level
Market Followers
Leading Innovators
24%42%34%
2% 5% 20%
*
Outperformers in revenue growth and profitability
Market perception of the enterprise
©2015 IBM Corporation3
To get their views we surveyed
industry leaders…
Chief Executive Officers (CEOs)Chief Financial Officers (CFOs)Chief Human Resources Officers (CHROs)Chief Information Officers (CIOs)Chief Marketing Officers (CMOs)Chief Operating Officers (COOs)
818
643
601
1,805
723
657
©2015 IBM Corporation3
were university leaders or education experts104
©2015 IBM Corporation4
We wanted to know . . . what’s putting the world’s top executives on edge?
©2015 IBM Corporation5
What’s putting the world’s top executives on edge?
“The ‘Uber syndrome’ – where a competitor with a completely different business model enters your industry and flattens you.”CIO, Transportation, United States
©2015 IBM Corporation6
Industry convergence is the biggest trend on the horizon
Industry convergence
The “anywhere” workplace
Rising cyber riskThe redistribution of consumer purchasing powerThe sustainability imperativeAlternative finance and financing mechanismsThe sharing economy
Top trends to impact business (in 3 to 5 years)64%
49%
50%
44%
30%
28%
26%
All CxOs COOs
66%
50%
43%
32%
25%
24%
46%
©2015 IBM Corporation7
CxOs expect industry convergence to have the biggest impact on their business
Total CEO CFO CHRO CIO CMO COO
70%
60%
50%
40%
30%
20%
10%
0%
Industry convergence
The “anywhere” workplace
Rising cyber risk
The redistribution of consumer purchasing power
The sustainability imperative
Alternative finance and financing mechanisms
The sharing economy
Top trends to impact business (in 3 to 5 years)
©2015 IBM Corporation8
“The boundaries of competition are becoming ambiguous.”Yong Eum Ban, CFO, JoongAng Media Network, South Korea
©2015 IBM Corporation9
“New competitors from different industries are entering our market. We need to look at what these companies are doing, rather than watching how other enterprises in our industry behave.”Gustavo Hernan Garcia, HR Director, ICBC, Argentina
©2015 IBM Corporation10
“The biggest threat is new competitors that aren’t yet classified as competitors.”Piotr Ruszowski, CMO, Mondial Assistance, Poland
©2015 IBM Corporation 10 August 201610
©2015 IBM Corporation11
CEOs again selected technology as the most important external force that will affect their enterprise
External forces impacting the enterprise (in 3 to 5 years)2006 2008 2010 2012 20152004
Technology factors
Market factors
Regulatory concerns
Macro-economic factors
Socio-economic factors
Globalization
People skills
Geopolitical factors
Environmental issues
2013
©2015 IBM Corporation12
“We’re experiencing ‘a technological onslaught.’”Dr. Mubbashir Iftikhar, CIO, KPJ Healthcare Berhad, Malaysia
©2015 IBM Corporation13
So what does this mean for universities?
2. Universities must adapt and keep pace with the emerging ecosystems of industries that could use technology to occupy a core percentage of the space dominated by asset-heavy providers susceptible to disruption by asset-light providers
1. Universities can leverage lessons from market leaders to help improve service delivery and transform business and operating models
©2015 IBM Corporation14
Be Ready to Redefine BoundariesKey initiatives to take on the disrupters
Put more scouts on the front line
Share to shine
Seize the middle space
Create a panoramic perspective
Cultivate your cognitive capabilities
Form your own futures squad
Take an eco-centric view of the world
2
Prepare for the digital invaders
1
Be first, be best, or be nowhere
3 Investigate unfamiliar territory
Go offline to test for the best
Create – and capture – the moment
©2015 IBM Corporation15
How to prepare for the new digital competitionDecentralize and delegateIn fast-moving markets, historical data has limited value. Delegate all but the most important decisions to the people who are closest to your customers. With decentralized decision-making, you’ll have more enterprise representatives with greater freedom of action. Pooling the local intelligence they provide with input from your partners will give you a much clearer idea of how customer needs and expectations are changing. It will also enable you to develop close alliance with partners and forge stronger relationships with them.
Share to shineRatchet up your plans to form new partnerships, and be ready to “reciprocate” by sharing key resources with partner learning and research organisations so you can grow together. Start by defining what you can share and what sort of partner you want. Look for enterprises with a strong record of innovation and skills that could be combined with your own to create new opportunities. Once you’ve found a suitable ally, conduct small experiments to learn together.
Seize the middle spaceWhat do disruptors like Alibaba, eBay, Spotify and WhatsApp have in common? They’ve each become the linchpin in a virtual network via which other companies reach their customers. Building an online forum where many different buyers and sellers can meet to trade, share information and swap insights, and stimulating the development of a healthy ecosystem, can be a highly profitable strategy. It also prevents you from being cut out of the picture by somebody else.
©2015 IBM Corporation15
©2015 IBM Corporation16
Interactions with constituents moving increasingly online…
no change
no change
Business landscape change (in 3 to 5 years)
More face-to-face interaction More digital/virtual interaction
Global Public Sector
©2015 IBM Corporation17
Create more individualized customer experiences
no change
no change
Business landscape change (in 3 to 5 years)
More focus on customers as segments More focus on customers as individuals
Global Public sector
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Torchbearers pay greater attention to customer feedback than universities typically have done …
External sources to identify and explore new trends and technologies
Customer feedback
Public SectorGlobal Torchbearers
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… and they place far more weight on next generation technologies
Cognitive computing Advanced manufacturing technologies
New energy sources and solutions
Public SectorGlobal Torchbearers
Technologies revolutionizing business (in 3 to 5 years)
©2015 IBM Corporation20
Cloud and mobile will have the greatest impact on business in the future
Cloud computing and services
Mobile solutions
Internet of Things (IoT)
Cognitive computing
Advanced manufacturing technologies
New energy sources and solutions
Bioengineering
Man-machine hybrids
Technologies revolutionizing business (in 3 to 5 years)
63% 79%
61% 72%
57% 54%
37% 38%
28% 13%
23% 17%
12% 6%
10% 5%
Global Public Sector
©2015 IBM Corporation21
“There’s no one technology that matters most. It’s connecting the dots between
them all that’s important.”Mike Mancuso, Executive Vice President & CEO, Philips Healthcare, United States
©2015 IBM Corporation21
©2015 IBM Corporation22
Industry convergence – redefining boundaries
Prepare for the new digital competition
Create a panoramic perspective
Be first, be best, or be nowhere
Context
©2015 IBM Corporation22
©2015 IBM Corporation23
How to create a panoramic perspective
Form your own futures squadSet up a specialist forecasting team, equipped with the right technologies and skills. Recent research shows people trained to use probabilistic reasoning techniques, and recognize and eliminate bias, produce better forecasts. Working in teams likewise increases the odds of predicting the future accurately. Consider designating someone within your enterprise specifically to scan for new technologies and monitor the marketplace.
Cultivate your cognitive capabilitiesThere’s no technology that can tell you exactly what will happen in the future. However, using predictive and cognitive analytics to scrutinize the real-time data you receive from across your extended enterprise and mission area will help you forecast what might happen with a greater level of confidence. It will also enable you to generate “what-if” scenarios and risk assessments, allowing you to prepare for different outcomes before they occur.
Take an ecocentric view of the world Assess the caliber of all the enterprises in your ecosystem. Are you leveraging all their contacts, skills and assets? Are there any weak links? Are there any missing skills? Ask yourself whether your ecosystem has the right expertise to exploit new trends and technologies and boost its power to compete. If not, where should you look? The fate of your organization now rests on the collective abilities of the ecosystem in which you operate, including its ability to read – and prepare for – the future.
©2015 IBM Corporation23
©2015 IBM Corporation24
Industry convergence – redefining boundaries
Prepare for the new digital competition
Create a panoramic perspective
Be first, be best, or be nowhere
Context
©2015 IBM Corporation24
©2015 IBM Corporation25
Technology will force universities to reassess most aspects of their business
Product/service portfolio
Operating model Partnerships Delivery channels Revenue model Customer typesor segments
Parts of the business most impacted by technology
Global Public Sector
©2015 IBM Corporation26
of global CxOs are experimenting with different business models or thinking of doing so
©2015 IBM Corporation26
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Nobody said it would be easy: universities face many obstacles when deploying new business models
©2015 IBM Corporation27
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… and whether launching a new business model or product offering, Torchbearers prefer to be first
Preference to reach the market first
Public SectorGlobal Torchbearers
©2015 IBM Corporation29 ©2015 IBM Corporation29
How to be first, or best
Investigate unfamiliar territoryFocusing on your existing strengths and learning from your immediate peer organizations will only help you do the same things you’re already doing – slightly better. Listen to your customers and partners, and actively collaborate with them. Concentrate on building broader networks and look at what organizations in unrelated industries are doing to get completely different ideas.
Go offline to test for the bestSet up an innovation center outside your current organizational structure for incubating and piloting new business models and offerings. Give it the latitude to experiment properly, including sufficient time and resources. Test the most promising prototypes on a select group of knowledgeable, impassioned customers and constituents; you’ll learn far more from them than you will from a throng of uninformed users. And be ruthless about discarding all but the very best options. ‘Good’ isn’t good enough in a transparent digital environment.
Create – and capture – the momentOnce you’ve decided to launch a new business model, product or service, move fast – and be prepared to bet big. It’s difficult to triumph as a pioneer when technological advances are occurring so rapidly they can render even recent innovations obsolete.
©2015 IBM Corporation30
Context: Disruptive trends, dangerous timesContext: Disruptive trends, dangerous times
What to do: Redesign your operating model
How to do it: Innovate your ecosystem
What you need to do it: Boost yourdigital acumen
©2016 IBM Corporation30
Operations
©2015 IBM Corporation31
“Industry convergence will drive the need to differentiate based on brand reputation, quality of service and partner network.”
Marco Barioni, COO, Reale Mutua, Italy
©2015 IBM Corporation32
+19%
Fending off these new rivals will entail providing more digitized, personalized offerings
75%
63%More digital interaction
More focus on customers as individuals 53%
62%
+17%
Business landscape change (in 3 to 5 years)
2013
2015
2013
2015
“Ultimately, computing is about networked intelligence, and from this technical perspective
the real impact of the Internet and devices will be seen once that translates into automation
and machine intelligence.”Brian Armstrong, COO, Telkom SA, South Africa
©2015 IBM Corporation34
Context: Disruptive trends, dangerous times
What to do: Redesign your operating model
How to do it: Innovate your ecosystem
What you need to do it: Boost yourdigital acumen
©2016 IBM Corporation34
Summary
What to do: Redesign your operating model
Operations
©2015 IBM Corporation35
COOs plan to review their operating models and offering portfolios in light of technological progress
Parts of the business most impacted by the next wave
Operating model
Product/serviceportfolio
Revenue model
Deliverychannels
Partnerships Customer types or segments
71%68%
60% 58% 57%
49%
©2015 IBM Corporation36
“The ‘anchor’ for products won’t be the physical asset; it will be the digital entity – the product plus all the information associated with it.”Jesús Marín Rodríguez, COO, Allianz Spa, Italy
©2015 IBM Corporation37
Torchbearer COOs are reviewing the core partsof their operations more actively
83%
68%
81%
55%
73%
54%
Parts of the business most impacted by the next wave
more35%
more22%
more47%
Reviewing operating model
Reviewing revenue model
Reviewingdelivery channels
Market Follower COOsTorchbearer COOs
©2015 IBM Corporation38
“We’ll have to project an even more customer-centric, technology-savvy brand in
future and reach customers in a more real-time, targeted way.”
Michael Bullock, COO, ANZ Bank, New Zealand
©2015 IBM Corporation39
Torchbearer COOs are investing more heavily in creating automated, real-time operations
61%
44%
60%
44%
Operational strategies
more39%
more36%
Market Follower COOsTorchbearer COOs
Implement IoT to sense, capture, and communicate operational data
Move to automation-intensive production
What to do: Redesign your operating model
Align your digital operations strategy with your business objectives and automate learning content management and production.
Identify the best learning and research acceleration models based on total operational costs, bearing in mind the organization’s agility and customer responsiveness.
Optimize your digital operations sustainably. And explore the opportunities for crossing over into other delivery models, other sectors, and customer groups.
©2015 IBM Corporation41
Context: Disruptive trends, dangerous times
What to do: Redesign your operating model
How to do it: Innovate your ecosystem
What you need to do it: Boost yourdigital acumen
©2016 IBM Corporation41
Summary
How to do it: Innovate your ecosystem
Agenda
©2015 IBM Corporation42
Plan to create more innovative and agile ecosystems
Increase level of partnering to add value
Implement a predictive risk management strategy
Use collaborative digital strategies
Build agile and social networks
Partner for innovation
Have already done Plan to do in the next 2–5 years
47%
31%
26%
33%
58%
57%
57%
45%
“These days, it’s essential to build an ecosystem of customers and partners, and innovate continuously.”COO, Electronics, Japan
“The product lifecycle is becoming shorter, and there’s greater potential for disruption than ever before, which means we’ll have to make our operating model more flexible.”Bill Muir, COO, Jabil Circuit, United States
©2015 IBM Corporation44
Torchbearer COOs are more likely to be reviewing and expanding their partnerships
69%
55%
75%
56%
Impact on partner networks
more25%
more34%
Market Follower COOsTorchbearer COOs
Reassess partnerships Expand partner network
©2015 IBM Corporation45
Torchbearer COOs are putting more effort into creating agile operations to pioneer innovation
66%
38%
Preference to reach the market first
more74%
Market Follower COOsTorchbearer COOs
©2015 IBM Corporation46
Context: Disruptive trends, dangerous times
What to do: Redesign your operating model
How to do it: Innovate your ecosystem
What you need to do it: Boost yourdigital acumen
©2016 IBM Corporation46
What you need to do it: Boost your digital acumen
Operations
©2015 IBM Corporation47
Use advanced analytics, modeling and real-time data to gain a single, 360-degree view of the student
Adopt advanced analytics and modeling tools
Optimize flows for rapid market response
Use real-time data to predict demand
Synchronize all operations
Visibility and insight
32%
28%
42%
35%
63%
63%
47%
57%
Have already done Plan to do in the next 2–5 years
©2015 IBM Corporation48
“Moving technology closer to the customerwill provide better client analytics. This
will allow customers to access and receivewhat they need, resulting in greater revenue.”
COO, Insurance, South Africa
©2015 IBM Corporation49 ©2016 IBM Corporation49
Talent shortages are a big impediment to going digital
of CxOs know they’ll either have to hire people withthe relevant qualifications or train existing employees
©2015 IBM Corporation50
Other IBV research shows there is a huge gulf between awareness and action
Create new business models
Invest in new technology platforms
Collaborate more with partners
Modify existing IT infrastructure
Digital operations strategies42%
38%
38%
42%
Change marketing strategy
Train existing employees
Create new leadership roles
Establish centers of talent-rich areas
Acquire relevant technology companies
Recruit new talent
37%
36%
26%
22%
27%
17%
©2015 IBM Corporation51
What you need to do it: Boost your digital acumen
Use advanced analytics, modeling and real-time data to streamline operations, predict demand and create a more transparent learning “supply chain”.
Leverage analytical insights to predict – and accommodate – students’ desires and incorporate student input into your content production and learning processes.
Acquire and develop the talent required to manage this tidal wave of change. And move fast.
What to doRedesign your operating model
─ Automate the learning content, management, and delivery approaches─ Identify sustainable new ventures based on total operational costs─ Cross over into other industries, sectors, market segments
How to do itInnovate your ecosystem
─ Partner to produce value collectively and with greater agility─ Compare asset-light versus asset-heavy approaches─ Adopt a decentralized management style
What you need to do itBoost your digital acumen
─ Streamline operations through data and the use of artificial intelligence─ Acquire and develop talent─ Move fast
©2015 IBM Corporation55 ©2016 IBM Corporation55
Harness the Hurricane
I invite you to continue the conversation
Dr Simon Eassom
Strategy and Solutions Leader
IBM Global Education Industry
0434 600 559