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Survival in a Digital World –Innovate or Die!

Steve Prentice

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Societal evolution and technology trends shape the future landscape and demand change…..

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Societal, geographic and economic forces create a changing demand for services, products, technology and resources which collectively influence the emerging business and technology landscape in the coming decades.

External Forces Shape Future Demand

Demographics and longevity

Towards 70% Urbanization

Climbing out of poverty

The South/East

drift

Shaping the Demands of the World in

2030

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Effectively unlimited computing power (and the communications infrastructure with which to access it) drives increasingly smart systems which drive the “information agora” and give rise to growing ethical concerns and cyber-security issues

Key Technology Trends

Smart(er) Devices

Ambient Computing

Information & Analytics

Cybersecurityand ethics

Enabling the Digitalized World of

2030

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Doing Nothing is NOT an Option!

“By 2020, more than three-quarters of the S&P500 will be companies

that we have not yet heard of.”Professor Richard Foster, Yale University

“More than one third of businesses today will not survive the next 10 years. Companies should not miss a market transition or business model nor

underestimate your competitor of the future – not your competitor of the past”

John Chambers, Former CEO, Cisco

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Why is innovation so tough for large organisations?

① The bar is already high – implementing new ideas is very tough!

② Too many vested interests are at play

③ Change is VERY hard – you often need a crisis!

④ Change represents a threat to stability – and profitability!

⑤ The success culture makes “failure” unacceptable

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① Startups don’t have legacy – so they are not trying to change

② Their organisational structure is fluid

③ There is no “norm” established

④ They believe they can do it!

⑤ They are prepared to break the rules and defy convention

⑥ And when all else fails, they Pivot!

The myth of innovation in startups

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New business models are replacing the old

• The “Aggregated Virtual Asset” model

– Information becomes the proxy for the physical deliverable

– Relies on the availability of fungible assets

– Significant reduction in capital employed

• Digital Platforms/Marketplaces

– Reusable modular building blocks

– Build and benefit from a Community

• Sharing Economy

– Collaborative & Cooperative

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Digital makes (almost) every asset replaceable

Train Ride

The local Curry House

Trust and Reputation

Knowledge

Production Line

Taxi and Delivery

Capital

Experience

Car share

JustEat and dozens of Takeaways

Social Recommendation and Reputation score

Cloud-based Virtual Assistant

Local 3D Printing service

Uber Car and Driver

Crowdfunding

Community

Reimagining the nature of assets

Photo (left): Raskino / Gartner, Sculpture by “Art of the Brick”, Artist Nathan Sawayer. Brickartist.com

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Digital Requires a New Vision

“We have developed our Blueprint for Mobility …. It involves experimentation right now, leading to an all-new model of transportation within the next 10 years.

Will we crack the code on our first try? Probably not. That’s OK. It’s part of innovation.

Mark Fields – President & CEO Ford Motor Company

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①Expand your sources – the smartest people don’t work for you

②Make Change (not Stability) the Norm

③Not everything will work - Treat Failure as a Success

3 Rules for Success

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If you keep doingwhat you have been doing

you won’t be doing it in 2020!

Innovate, or Die!