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Innovation & Digitalization:
Today, tomorrow & How to get there
@FHNW, February 2017
Michael Schranz
Business development

Apps with love GmbH
Landoltstrasse 63
3007 Bern 

michael@appswithlove.com
Twitter: @michaelschranz @appswithlove
www.appswithlove.com
Digitalization and Innovation - Today and Tomorrow
Agenda & Objectives
Agenda
•  Today 
 
 
 
30’
•  Tomorrow 
 
 
 
40’
•  Break 
 
 
 
10’ 
 
 
 

•  How to get there 
 
 
45’

Objectives 
•  Get inspired
•  Digital knowhow
•  Get to know contemporary innovation processes
Today
Topics
•  The age of information
•  Economies of long tail
•  The network effect
•  Blockchain & Cryptocurrencies
•  The hyper economy of silicon valley
•  Digitalization transformation
•  AI 1.0
The Information Age
... is a period in human history characterized by the shift from traditional industry that the
Industrial Revolution brought through industrialization, to an economy based on
information computerization.

As of February 2017, Apple is the world's most valuable company ahead of Alphabet and
Microsoft. Facebook is 5th and Amazon 9th. 
The big five: Apple, Google (Alphabet), Microsoft, Facebook, Amazon

Age of Information = The world of platforms:
•  Uber
•  AirBNB
> What do they have in common?
Economies of long tail



Chris Anderson: The Long Tail
http://www.thelongtail.com/about.html
The network effect
What is it?
•  The network effect is the effect that one user of a good or
service has on the value of that product to other people.
> path to (potentionally exponential) growth.
Why is it important in the age of digital?
•  A platform only creates value for the customers if enough people
use it.
Examples:
•  Facebook with Instagram stories vs. Snapchat
•  Google ecosystem
Blockchain & Cryptocurrencies
•  Blockchain / distributed-ledger
•  Bitcoin and other Cryptocurrencies
> Model to add trust to untrusted environments
> Reduced friction
> Transparent access to information
The hyper economy of silicon valley
•  Concentration of creative
ideas, knowledge, talents
and financing
•  Home of many major
(tech-) companies & all
have branches there
Digitalization transformation model
1.  Technological Development
2.  Adaptation of technology by the 
customers
3.  Adaptation curve of
the average business
4.  Adaptation curve of
the doomed business
5.  Social digital transformation
6.  Digital business transformation
Artificial intelligence 1.0

•  AI Chatbots / Robots
•  Self learning algorithms
•  Machine learning
•  Artificial neural networks
•  Data Mining
•  Pattern Recognition
Tomorrow
Topics
•  Smartness
•  Google everything
•  The world of platform economy
•  The era of real time communications
•  Seed AI / Singularity
Smartness
•  Smart home
•  Smart cities
•  Self driving cars
•  Industry 4.0 (IoT, IioT)
•  Intelligent Apps
> Smart everything? Will this make humanity smarter or
less smart? What about privacy and security?
Google / Alphabet everything?
•  Android OS on about 80% of all Devices
•  Nest
•  Maps
•  Network (Google Fiber)
•  Search
•  Machine Learning
•  Google Ventures & capitalG
•  YouTube (original content)
•  Technical Infrastructure & Sidewalks Labs
•  Calico
•  (Google Glass)
Ø  Is Alphabet too big (or too all-knowing) to fail?
Ø  What is the ultimate goal of Google?
> How could Google get disrupted?
The world of platforms 2.0
•  Workforce and work source on platforms
•  Micro jobs and the gig economy
> Social impact?
> Income (in)equality?
> Age of the Aggregators?
The era of real time communications

•  Complete archives of thought & communication
•  World of sensors
•  Culture <> Communication
> No more secrets?
Seed AI / Singularity

•  Singularity
•  General artificial intelligence
•  Exponential growth & intelligence
explosion
•  Artificial superintelligence
•  Raymond „Ray“ Kurzweil
How to get there?
•  How to exist in a world of platforms
•  How to close the digitalization gap
•  How to be and stay innovative

> Design thinking process
Types and forms of innovation
Forms:
•  Incremental innovation
•  Semi-radical innovation
•  Radical innovation (Disruption)
Types:
•  Product / service innovation
•  Process innovation
•  Business model innovation
•  Marketing innovation
•  Social innovation (organizational)
Innovation past & now
How did innovation change in the last couple of years?
•  The perspective on innovation and its development
•  No longer “behind closed doors”, instead open innovation
processes
•  Open innovation and co-creation - collaboration with:
•  Other businesses
•  Customers
•  Research partners
> Agility, ideas and approaches have changed
How to be creative
Founding principles of creative thinking
1.  Divergent thinking
describes a wide ranging
search for many different
and new alternatives.
2.  Convergent thinking
describes a focused,
positive and affirmative
evaluation of the
alternatives.
Innovate or die
Human centered design
Design thinking process








The design thinking process by IDEO (https://www.ideo.com/eu/)
(Illustration by Nielsen Norman Group)
Value proposition design process
Business model canvas
Value proposition canvas




© Alexander Osterwalder
Learning & Test cards
Lean Startup
•  Eric Ries: The lean startup
Apps with love - process
From Idea to Business Model
1.  Problem- Solution Fit
2.  Product-Market Fit
3.  Business Model Fit
Create - Establish - Scale - Monetize
Push vs. Pull
Two different approaches:
Digitalization drives Innovation
In order to evaluate the value chain for its potential for digitalization, it is
helpful if digitalization trends are known:
•  Big Data: From the analysis of customer interaction to data driven
business models
•  Cloud solutions / services: Customer data on the go
•  Personalization and individual customization of products
•  Internet of things: Office automation, SmartHome, warehouse and
storage management
•  Enterprise apps: Process optimization with apps
•  Crowdsourcing: Customer-involvement for new products
•  3D-Printing: Rapid prototyping, visualize visions
•  Smart enterprises: Energy savings, time tracking tools
Questions? Comments?

Michael Schranz 

Apps with love GmbH
Landoltstrasse 63
3007 Bern 

michael@appswithlove.com
info@appswithlove.com
Twitter: @michaelschranz @appswithlove
www.appswithlove.com


THANK YOU FOR YOUR ATTENTION!
Sources and further reading
In this presentation, knowledge, diagrams and graphs from the following books were used:
•  Business Model Generation & Value Proposition Design Develop the products and services your customers
actually want
(Alexander Osterwalder, Yves Pigneur, Greg Bernarda, and others)
https://strategyzer.com/books
•  The Long Tail
(Chris Anderson)
http://www.thelongtail.com/about.html
•  The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful
Businesses
(Eric Ries)
https://www.amazon.de/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898
•  The Silicon Valley Challenge: A Wake-Up Call for Europe
(Christoph Keese)
https://www.amazon.de/Silicon-Valley-Challenge-Wake-Up-English-ebook/dp/B01M4HA7C8

•  Denkwerkzeuge der Kreativität und Innovation
(Florian Rustler)
http://www.creaffective.de/de/veroeffentlichungen/buchdenkwerkzeuge/

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Burning Issue presentation of Zhazgul N. , Cycle 54
 

Digitalization and Innovation - Today and Tomorrow

  • 1. Innovation & Digitalization: Today, tomorrow & How to get there @FHNW, February 2017
  • 2. Michael Schranz Business development Apps with love GmbH Landoltstrasse 63 3007 Bern michael@appswithlove.com Twitter: @michaelschranz @appswithlove www.appswithlove.com
  • 4. Agenda & Objectives Agenda •  Today 30’ •  Tomorrow 40’ •  Break 10’ •  How to get there 45’ Objectives •  Get inspired •  Digital knowhow •  Get to know contemporary innovation processes
  • 5. Today Topics •  The age of information •  Economies of long tail •  The network effect •  Blockchain & Cryptocurrencies •  The hyper economy of silicon valley •  Digitalization transformation •  AI 1.0
  • 6. The Information Age ... is a period in human history characterized by the shift from traditional industry that the Industrial Revolution brought through industrialization, to an economy based on information computerization. As of February 2017, Apple is the world's most valuable company ahead of Alphabet and Microsoft. Facebook is 5th and Amazon 9th. The big five: Apple, Google (Alphabet), Microsoft, Facebook, Amazon Age of Information = The world of platforms: •  Uber •  AirBNB > What do they have in common?
  • 7. Economies of long tail Chris Anderson: The Long Tail http://www.thelongtail.com/about.html
  • 8. The network effect What is it? •  The network effect is the effect that one user of a good or service has on the value of that product to other people. > path to (potentionally exponential) growth. Why is it important in the age of digital? •  A platform only creates value for the customers if enough people use it. Examples: •  Facebook with Instagram stories vs. Snapchat •  Google ecosystem
  • 9. Blockchain & Cryptocurrencies •  Blockchain / distributed-ledger •  Bitcoin and other Cryptocurrencies > Model to add trust to untrusted environments > Reduced friction > Transparent access to information
  • 10. The hyper economy of silicon valley •  Concentration of creative ideas, knowledge, talents and financing •  Home of many major (tech-) companies & all have branches there
  • 11. Digitalization transformation model 1.  Technological Development 2.  Adaptation of technology by the  customers 3.  Adaptation curve of the average business 4.  Adaptation curve of the doomed business 5.  Social digital transformation 6.  Digital business transformation
  • 12. Artificial intelligence 1.0 •  AI Chatbots / Robots •  Self learning algorithms •  Machine learning •  Artificial neural networks •  Data Mining •  Pattern Recognition
  • 13. Tomorrow Topics •  Smartness •  Google everything •  The world of platform economy •  The era of real time communications •  Seed AI / Singularity
  • 14. Smartness •  Smart home •  Smart cities •  Self driving cars •  Industry 4.0 (IoT, IioT) •  Intelligent Apps > Smart everything? Will this make humanity smarter or less smart? What about privacy and security?
  • 15. Google / Alphabet everything? •  Android OS on about 80% of all Devices •  Nest •  Maps •  Network (Google Fiber) •  Search •  Machine Learning •  Google Ventures & capitalG •  YouTube (original content) •  Technical Infrastructure & Sidewalks Labs •  Calico •  (Google Glass) Ø  Is Alphabet too big (or too all-knowing) to fail? Ø  What is the ultimate goal of Google? > How could Google get disrupted?
  • 16. The world of platforms 2.0 •  Workforce and work source on platforms •  Micro jobs and the gig economy > Social impact? > Income (in)equality? > Age of the Aggregators?
  • 17. The era of real time communications •  Complete archives of thought & communication •  World of sensors •  Culture <> Communication > No more secrets?
  • 18. Seed AI / Singularity •  Singularity •  General artificial intelligence •  Exponential growth & intelligence explosion •  Artificial superintelligence •  Raymond „Ray“ Kurzweil
  • 19. How to get there? •  How to exist in a world of platforms •  How to close the digitalization gap •  How to be and stay innovative > Design thinking process
  • 20. Types and forms of innovation Forms: •  Incremental innovation •  Semi-radical innovation •  Radical innovation (Disruption) Types: •  Product / service innovation •  Process innovation •  Business model innovation •  Marketing innovation •  Social innovation (organizational)
  • 21. Innovation past & now How did innovation change in the last couple of years? •  The perspective on innovation and its development •  No longer “behind closed doors”, instead open innovation processes •  Open innovation and co-creation - collaboration with: •  Other businesses •  Customers •  Research partners > Agility, ideas and approaches have changed
  • 22. How to be creative
  • 23. Founding principles of creative thinking 1.  Divergent thinking describes a wide ranging search for many different and new alternatives. 2.  Convergent thinking describes a focused, positive and affirmative evaluation of the alternatives.
  • 26. Design thinking process The design thinking process by IDEO (https://www.ideo.com/eu/) (Illustration by Nielsen Norman Group)
  • 29. Value proposition canvas © Alexander Osterwalder
  • 31. Lean Startup •  Eric Ries: The lean startup
  • 32. Apps with love - process
  • 33. From Idea to Business Model 1.  Problem- Solution Fit 2.  Product-Market Fit 3.  Business Model Fit Create - Establish - Scale - Monetize
  • 34. Push vs. Pull Two different approaches:
  • 35. Digitalization drives Innovation In order to evaluate the value chain for its potential for digitalization, it is helpful if digitalization trends are known: •  Big Data: From the analysis of customer interaction to data driven business models •  Cloud solutions / services: Customer data on the go •  Personalization and individual customization of products •  Internet of things: Office automation, SmartHome, warehouse and storage management •  Enterprise apps: Process optimization with apps •  Crowdsourcing: Customer-involvement for new products •  3D-Printing: Rapid prototyping, visualize visions •  Smart enterprises: Energy savings, time tracking tools
  • 36. Questions? Comments? Michael Schranz Apps with love GmbH Landoltstrasse 63 3007 Bern michael@appswithlove.com info@appswithlove.com Twitter: @michaelschranz @appswithlove www.appswithlove.com THANK YOU FOR YOUR ATTENTION!
  • 37. Sources and further reading In this presentation, knowledge, diagrams and graphs from the following books were used: •  Business Model Generation & Value Proposition Design Develop the products and services your customers actually want (Alexander Osterwalder, Yves Pigneur, Greg Bernarda, and others) https://strategyzer.com/books •  The Long Tail (Chris Anderson) http://www.thelongtail.com/about.html •  The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses (Eric Ries) https://www.amazon.de/Lean-Startup-Entrepreneurs-Continuous-Innovation/dp/0307887898 •  The Silicon Valley Challenge: A Wake-Up Call for Europe (Christoph Keese) https://www.amazon.de/Silicon-Valley-Challenge-Wake-Up-English-ebook/dp/B01M4HA7C8 •  Denkwerkzeuge der Kreativität und Innovation (Florian Rustler) http://www.creaffective.de/de/veroeffentlichungen/buchdenkwerkzeuge/