Responding to Digital Disruption in the Security Sector.

1. Digital Apocalypse Survival Guide
Inês Almeida – Chief Transformation Officer
SECURITY LEADERS FORUM - MARCH 2018

2. e-pocalypse?
e-pocalypse?

3. Average company lifespan on the S&P500 (in years).
DATA: INNOSIGHT/ Richard N. Foster / Standard & Poor’s

4. Gains S&P500 Index – October 2017.
DATA: Macrotrends.net ANALYSIS: CNBC

5. The consumerisation of business buying.
Hyper-convenient, seamless, connected, personalised experiences. Anytime. Anywhere. Now!
The consumerisation of business buying.

6. Residential security is in
technological transition.
• Cloud-based
• Package & price flexibility &
accessibility with self-installation
and self-monitoring options
• All-in-one
• Connected to the smart city and
home ecosystems powered by
Amazon, Google and Apple

7. By 2020 the number of households
with interactive security will edge past
those with traditional security
systems.
USA data - Strategy Analytics

8. The exponential acceleration of
technological advancement.

9. Trends and disruptors.

10. AI-powered home and
personal devices for
security, convenience and
comfort.
Mainstream adoption of consumer
biometric authentication
By 2020 50% of all searches
will be voice searches

11. AI-powered home and
personal devices for
security, convenience and
comfort.
Mainstream adoption of consumer
biometric authentication
Image tagging
By 2020 50% of all searches
will be voice searches

12. AI-powered home and
personal devices for
security, convenience and
comfort.
Mainstream adoption of consumer
biometric authentication
Image tagging
Face and voice recognition:
• identity
• demographics
• Emotion and sentiment (affective
computing)
By 2020 50% of all searches
will be voice searches

13. AI-powered home and
personal devices for
security, convenience and
comfort.
Mainstream adoption of consumer
biometric authentication
Image tagging
Face and voice recognition:
• identity
• demographics
• Emotion and sentiment (affective
computing)
AI learns your routine—schedule,
sprinklers, temperature, humidity,
lightning, coffee habits etc.
By 2020 50% of all searches
will be voice searches

14. The Blockchain.
Redefining identity and value
exchange in the era of the internet of
things:
• Programmable smart locks
• Deployment of smart appliances
that can order and negotiate
consumables and organise their
own repairs

15. “Each business is a victim of Digital
Darwinism, the evolution of consumer
behaviour when society and technology
evolve faster than the ability to exploit it.
Digital Darwinism does not discriminate.
Every business is threatened.”
Brian Solis

16. “Fast evolution
of consumer
behaviour.”
Optimise for:
WISDOM
Gather customer data and insights.
AGILITY
Evolve products, services, and experiences.
FAST & CONTINUOUSLY.

17. Wise Agile
In humans, wisdom and agility
have an inverse correlation.
The same is true for most organisations.

18. Stages of the
corporate lifecycle.
The aging process begins:
• Success may breed
complacency
• The optimisation process
begins—economies of scale,
reuse, efficiencies,
centralisation, control
• Single focus on short term
financial results

19. $$$
The innovator's dilemma.
Disrupt from within or be disrupted.

20. Can this be avoided?

21. How can we operate
and organise for
WISDOM & AGILITY?

22. The eternal
fountain of
youth.

23. But . . .
Don’t try this at
home just yet!

24. What is a
company’s
fountain of youth?
How can we avoid
unintended
consequences?

25. The Formula.

26. Surviving and thriving in
the age of disruption.
Optimising your business for wisdom
and agility so that you can deliver
delightful, useful, and relevant customer
experiences.
CUSTOMER
CENTERED
TECH & DATA
POWERED BY
WISDOM
AGILITY EXPERIENCE

27. Always start with the
customer vision.
CUSTOMER
CENTERED
TECH & DATA
POWERED BY
WISDOM
AGILITY EXPERIENCE
Customer Inspired.

28. How customer satisfaction correlates
with total return to shareholder.
400%
300%
200%
100%
0%
2004 2006 2008 2010 2012 2014
DATA: McKinsey | Medallia
1. Above-average customer satisfaction score.
2. Below-average customer satisfaction score.

29. Wisdom.
Kate Sheppard

30. Wisdom.
Knowing your customers, deriving
actionable insights, and measuring
what matters most.
CUSTOMER
CENTERED
TECH & DATA
POWERED BY
WISDOM
AGILITY EXPERIENCE

31. Wisdom – Strategies.
Put the personal
back into
personalisation
Derive insights
that you can
action
Measure what
matters
1 2 3

32. Put the personal back into
personalisation.
Know your customers

33. Derive insights . . .
Understand why I buy,
not what I buy.

34. . . . that you can action.
“Hey Google, please pull up my shopping list.”
“Sure! I’ve noticed you like kale, is that right?”
“Yes.”
“May I suggest you add Amy’s kale soup to your list?”

35. Measure what matters most.

36. The house of clicks.
Wisdom – A story.

37. The house of clicks.
Hemnet used data from its
website to create the ideal
Swedish home.
Analysed 200 million clicks on
86,000 properties. (Know your
customer)

38. The house of clicks.
Used statistics to choose the
features and layout of new
product. (Derive actionable
insights)

39. The house of clicks.
The campaign became a hot
topic in the media, reaching over
218 million people.
648 people signed up to buy and
build. (Measure what matters)

40. Experience.

41. Prevent unintended consequences!

42. Customer experience principles
Artificial intelligence and data
TRUST &
TRANSPARENCY
UTILITY
FAIRNESS &
INCLUSIVITY
EMPATHY &
RESPECT
ACCOUNTABILITY
Privacy concerns and related consumer backlash are rising sharply. If you seek eternal life
be an elf, not a vampire.

43. Experience.
Creating value-added, hyper-
convenient, relevant customer
experiences at every touchpoint, off-line
and online.
CUSTOMER
CENTERED
TECH & DATA
POWERED BY
WISDOM
AGILITY EXPERIENCE

44. Experience – Strategies.
Hyper
convenient,
seamless and
connected.
Interactive,
personalised and
relevant.
Value-added. Any
channel. Any
time. At speed.
1 2 3
Human
consultation
powered by
insights.
4

45. Delightful experiences drive network effects
• Connected
• Hyper-convenient
• Personalised
• Interactive
• Relevant
Security solutions as a
fraction of the connected
home and city experience.

46. The race to capture the
smart living platform.
• Property Developers
• Tech Giants
• Governments
• . . .

47. Superior experience
across the full
customer journey.
DISCOVERY/
AWARENESS
RESEARCH
PURCHASE
BOOKINGS &
DELIVERY
INSTALLATION
SERVICE &
SUPPORT
REVIEW
Human-centered
Connected and seamless
Hyper-convenient
Personalised
Interactive and informative
Relevant
Transparent; no surprises
The partner ecosystem is stronger
together as long as it is connected
seamlessly.

48. Where to start?
DISCOVERY/
AWARENESS
RESEARCH
PURCHASE
BOOKINGS &
DELIVERY
INSTALLATION
SERVICE &
SUPPORT
REVIEW
Human-centered
Connected & seamless
Hyper-convenient
Personalized
Interactive & informative
Relevant
Transparent. No Surprises.

49. CUSTOMER
DESIRABILITY
BUSINESS
VIABILITY
FEASIBILITY
The sweet spot of
business growth.
DESIRABILITY
Are we solving the right
problems?
FEASIBILITY
Are we building on our
operational strengths?
VIABILITY
Does our solution contribute
to long-term growth?
A desirable solution,
one our customers
really need.
A feasible solution, that
builds on our current
capabilities.
A profitable solution,
with a sustainable
business model.

50. Agility.
Courtney-McGregor

51. Agility.
Strategic and operational ability to
respond fast to customers’ changing
behaviours by continuously evolving
products, services and experiences
based on insights.
CUSTOMER
CENTERED
TECH & DATA
POWERED BY
WISDOM
AGILITY EXPERIENCE

52. Agility.
CUSTOMER
CENTERED
TECH & DATA
POWERED BY
WISDOM
AGILITY EXPERIENCE
The Orange DNA represents relentless
innovation, outstanding quality
and enduring partnerships.

53. Agility – Strategies.
Experimentation.
A product and
service portfolio
view.
Business model
innovation.
1 3 4
Strategy.
Delivered.
5
Organising to
win.
2

54. Escaping the aging
process.

55. The s-curve of a product or a service.
Growth
Concept
Creation
Time
Market
Development
Concept
Development
Optimisation

56. Reinvention
Harvesting
Market
Development
Concept
Development
Growth
Concept
Creation
Innovate or die.
Time
Optimisation

57. Growth
Concept
Creation
The sustainable business.
Time

58. Experimentation.

59. 90% of new
product ideas fail.
Harvard Business School

60. From plans to
many EXPERIMENTS
MEASURE
LEARN
BUILD

61. SOURCE: Barry O’Reilley, Lean PMO: Managing the Innovation Portfolio
DATA not HIPPOs should
inform your decisions

62. DATA not HIPPOs should
inform your decisions
SOURCE: Barry O’Reilley, Lean PMO: Managing the Innovation Portfolio
HIGHEST PAID PERSON’S OPINION(S)

63. Fail fast.
Minimum viable, boot-strapped
experiments.

64. Our success at Amazon
is a function of how
many experiments we
do per year, per month,
per week, per day.
JeffBezos

65. Organising to win.

66. Unicorns
breakdown fences

67. Structure matters. A lot.
Activity Oriented
Specialised
Team
Specialised
Team
Specialised
Team
Specialised
Team
Outcome
Outcome
Outcome
Handover breakdown
Misaligned incentives and goals

68. Remove silos to increase speed to value.
Activity Oriented
Specialised
Team
Specialised
Team
Specialised
Team
Specialised
Team
Outcome
Outcome
Outcome
Handover breakdown
Misaligned incentives and goals
Cross-functional
Aligned incentives and goals
Outcome Oriented
Outcome
Outcome
Outcome
Community
of Practice
Community
of Practice
Community
of Practice
Community
of Practice

69. Remove silos to increase speed to value.
SOURCE: Attlassian

70. What gets measured gets managed and
improved.
Druker

71. A product and service portfolio
view.

72. The problem with most companies’ strategies.

73. Investing now in the three horizons of growth.
Optimising existing
products and services
Creating and launching new
products, services and
experiences
Understanding future
opportunities for growth
Maintain and defend core
business
Nurture emerging business
Create genuinely new
business

74. The importance of Disruptive Innovation.
Optimising existing
products and services
Creating and launching new
products, services and
experiences
Understanding future
opportunities for growth
Maintain and defend core
business
Nurture emerging business
Create genuinely new
business

75. Sustaining Innovation.
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND CREATE
MANAGE ADAPT
SUSTAINING
INNOVATION
INCUMBENTS NEARLY
ALWAYS WIN
SOURCE: Clayton Christensen

76. Disruptive Innovation.
EXISTING
OFFERINGS
EXISTING USERS NEW USERS
NEW
OFFERINGS
EXTEND CREATE
MANAGE ADAPT
DISRUPTIVE
INNOVATION
ENTRANTS NEARLY
ALWAYS WIN
SOURCE: Clayton Christensen

77. It is the discipline to discard what does not fit —
to cut out what might have already cost days or
even years of effort — that distinguishes the truly
exceptional artist and marks the ideal piece of
work, be it a symphony, a novel, a painting, a
company or, most important of all, a life.
JimCollins–Thestopdoinglist
Art: Diminish and Ascend by David McCracken of New Zealand. Sydney's Sculpture by the Sea

78. Business model innovation.

79. Companies have the opportunity to create new
sources of revenue by rethinking their traditional
roles and adopting an ecosystem mind-set.
Ecosystems will account for 30 % of global
revenues by 2025.
McKinsey

80. FOLLOW THE
DATA
FOCUS ON
CUSTOMER LOYALTY API PARTNERS
The rise of the business ecosystems
and platforms beyond sector silos.
Interconnected set of services that allows users to fulfill a variety of needs in one integrated experience.

81. Own market
revenue
Time
CostsRevenues
Shorter product life
in market
Internal
development costs
Own market
revenue
0
Rising costs of innovation
Internal
development costs
Closed business model.
SOURCE: Open Business Models: How to Thrive in the New Innovation Landscape by Henry Chesbrough

82. CLOSED
BUSINESS MODEL
Costs
Revenues
New revenues
Own market revenue
Cost and time savings from leveraging
external development
Internal development
costs
Internal and external
development costs
Own market revenue
Other
Spin-off
JV revenue
Revenue share
OPEN
BUSINESS MODEL

83. Strategy. Delivered.

84. Strategy not delivered.
EXECUTION
STRATEGY
Missed Opportunity
Can’t validate if strategy is
good or should be
reformulated
• Analysis paralysis
• Poor delivery engine

85. Running blind.
EXECUTION
STRATEGY
Missed Opportunity
Can’t validate if strategy is
good or should be
reformulated
Slow Death
Can’t determine what is
working/not working
• Tactical & reactive
• Poor delivery engine

86. Optimising for agility and speed.
EXECUTION
STRATEGY
“When in doubt, try it out.”
Requires the courage to
experiment and permission to fail
fast (and recover quickly).
Missed Opportunity
Can’t validate if strategy is
good or should be
reformulated
Slow Death
Can’t determine what is
working/not working
Succeed Fast
Focus on the next strategic
opportunity
Fail Fast
Revise strategy quickly and
start over

87. e-pocalypse?
e-pocalypse?

88. Surviving and thriving in
the age of disruption.
Optimising your business for wisdom
and agility so that you can deliver
delightful, useful and relevant customer
experiences.
CUSTOMER
CENTERED
TECH & DATA
POWERED BY
WISDOM
AGILITY EXPERIENCE

89. About APD

90. 300+ digital experts operating across the
Asia Pacific region.
STRATEGY &
CHANGE
BRAND &
MARKETING
EXPERIENCE &
DESIGN
TECHNOLOGY &
DATA
PERFORMANCE
CRM & MEDIA
RESEARCH &
INSIGHTS
Transformation. Delivered.

91. Thank you.
Get in touch!
Inês Almeida
Chief Transformation Officer @ APD
ialmeida@apdgroup.com
www.linkedin.com/in/inesalmeida
DIGITAL TRANSFORMATION. DELIVERED.