suddenly i am a software company
TRANSCRIPT
©2015 GlobalLogic Inc. All Rights Reserved.
2 © 2015 GlobalLogic Inc. All Rights Reserved.
Your company is very successful
You are a respected player in your market, and have a significant market share
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You are no stranger to software
You have engineers —hundreds or even thousands of them, processes, tools…
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But over the last 5 years or so, you’ve had an increasing sense that something fundamental has changed.
Nimble competitors, enabled by software, have begun to encroach on your market and to introduce new business models
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You may have bought or caught up with some of these competitors—but new ones keep sprouting up all the time.
You can’t buy them all, and they are eroding your market ownership
You may have hired in special skills—data scientists, designers, mobile app developers, cloud specialists —
and while you got new functionality, the fundamentals of your business stay the same
You may even have brought in new leadership, including a digital transformation officer or head of design —
but much of the company continues to act as it always has
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Like all of us, you see the disruption around you.
Established players are under threat or even have been driven from the market by radically new business models
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OTTTelcos
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Image: conventional switches,Antennas, heavy infrastructureOf Telcos
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Travel and transportation
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Sharing EconomyAccess not Ownership
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Retail and consumer packaged goods
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“Showrooming”Same-day delivery
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Financial institutions
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Peer-to-peer
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Healthcare
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Wellness-based care
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Media
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Direct to consumerSelf-publishing
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What do allof these transformations have in common?
Software, connectivity and data-driven “intelligence”take capital investment and human staff out of the value chain, enabling new “intelligent systems-driven” business models
This transformation requires more than an app, or a modernized software system
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For most businesses, the focus has been on the type of work that they do: banking, retail, etc.
Software and even customers existed to support the business
Software
Business
Customer
CIO
CMO
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In a digital world the value comes from the relationship with the customer, and software is at the core of the business strategy
Software
Business
Software
Business
Customer
Customer
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“I woke up this morning and we are now a software company!”
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PurchaseFirst-Use
Existing and Emerging Needs
Systems of Value
Product & Service Interactions
Interfaces
Business/Customer Life-cycle Channels & Applications
Platforms
Products & Services
Analytics & Insights
Data
RenewReplace
Ongoing Use Support
Awareness Consideration
This means things like: user-centered, design-led development:User needs and user adoption drives evolution — not internal considerations and hypothesis alone
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This means new “user-centric” processes, like Lean and Agile
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Accelerate growth
Gather Insights01
Form Hypothesis
02
PrioritizeHypothesis
03
Identify a problem worth solving Build something people want
Customer Need Market Opportunity
Technical Capabilities Opportunities in Data
Test and move on as quickly as possible against metrics
02
Continue until MVP validated (>40% of customers would be disappointed without product) or funds run out
03
Update lean canvas04
Run a series of experiments to build MVP
01Identify product promise, business model, optimize and scale
01
Design and build production application
03
Define product backlog and roadmap
02
Sales and Marketing04
Continuous discovery and delivery
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Learn Build
Measure
Ideas
CodeData
Product/solution fit Product/market fit Scale
Learn Build
Measure
Ideas
CodeData
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Power in a company tends to align around current sources of revenue
Far from being welcomed, in many companies new business models are seen as a threat to the current leaders and even to the company’s identity
This means new software and user-centric business models
IoT
OmnichannelWearables
Sharing Economy
Real Time Intelligence
API’sCloudXaaS
Access not Ownership
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Bridging the CIO/CMO Disconnect
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http://www.businesscloudnews.com/2014/04/22/dont-you-for get-about-me-br inging-the-cio-and-cmo-together/
“Increased customer demands and the digitization of everything is forcing CMOs to be more quantitative, accountable, and tech savvy, while CIOs are being forced to really understand business and market drivers – and the impact that data and technology can have in enabling marketers to perform better.”
CIO CMO
- Loyalty Today
CIO CMO
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