disruption in our economy, and the impact of digital transformation 1) trends 2) drivers for change 3) business models 4) how to respond to the disruption?

1. DISRUPTION & DIGITAL TRANSFORMATION
8TH, 9TH & 10TH MARCH 2016
8TH INTERNATIONAL WEEK

2. digital transformation
• Digital transformation or disruption
→ some cases
• Modeling
• How should organizations deal with digital
transformation?
CONTENT

3. A WAKE UP CALL
TRENDS
trends
drivers
models
response

4. trends
DO YOU REMEMBER WHAT HAPPENED WITH THESE COMPANIES?
can you give some
examples of industries
that are
• out of business
• or are threatened
by
• disruption
• digital transformation
The Great Wave off Kanagawa, Katsushika Hokusai

5. trends
PHOTOGRAPHY

6. trends
MUSIC

7. trends
FILM

8. trends
NEWSPAPERS

9. trends
BOOKSHOPS

10. trends
BANK LOAN

11. trends
SHOPPING

12. trends
GROCERY

13. trends
• generation Z
NEW CUSTOMER

14. trends
BUYING LENS

15. trends
TRAVEL

16. trends
PAYING CASH

17. trends
CAR

18. trends
TAXI

19. trends
ALIBABA STORY

20. trends
• 95 years
• 685,000 rooms
• 92 countries
• $ 24 billion
• 6 years
• 1 000 000 accomodations
• 190 countries
• $ 13 billion
HILTON GROUP AIRBNB

21. trends
ENERGY

22. trends
• Do you recognize this building?
• Chrysler Building, Manhattan, NY
• represents power
→ car companies
→ oil industry
ARCHETYPE ‘OLD’ BUSINESS

23. trends
• and this building?
• headquarters Apple, Cupertino
ARCHETYPE ‘NEW’ BUSINESS

24. trends
• and this one?
• new headquarters Amazon, Seattle
• these are the new power bases
ANOTHER EXAMPLE

25. trends
• What’s the next business that will be disruptive
according to you? ….
GROUP DISCUSSION

26. DIGITAL DISRUPTION
DRIVERS
trends
drivers
models
response

27. drivers
• What are the underlying causes for this
disruption?
1. …
2. …
3. …
4. …
GROUP DISCUSSION

28. drivers
WAVES OF DIGITAL DISRUPTION
source: digital transformation, Jo Coudron

29. drivers
BUILDING BLOCKS
con-
nected
peer
reviewing
online market
place
new technologies

30. drivers
THE SPEED OF CHANGE
source: digital transformation, Jo Coudron

31. WEB 4.0
drivers
bron: Patrick Petersen: online mkt

32. drivers
• technological innovation
→ social networks
→ user friendly apps
→ mobile devices
→ online review systems
DRIVERS OF TRANSFORMATION (DOT’S)

33. drivers
• cost consciousness
→ due to financial crisis
→ world wide economic slow down
DRIVERS

34. drivers
• value shift
→ younger generations think different about concept
→ access > possession (status) *
→ 1 lawn mower for neighborhood
• sharing economy
DRIVERS

35. drivers
SHARING ECONOMY

36. drivers
• growing concern about the climate
DRIVERS

37. drivers
• profit driven
• IP protected
• central management
• co-modification
• impact-driven
• open access, collaboration
• collective management
• co-notification
OLD WAY NEW WAY

38. drivers
SCENARIO

39. drivers
this is not an era of change, but a
change of era (Rotmans, 2014)
PARADIGM SHIFT

40. drivers

41. drivers
• before: monolithic models
→ top down logic
→ only a few people had access to all the information
→ information was controlled & filtered
• now: internet & social media
→ 2 way communication customer & stakeholders
→ conversation management
METAPHOR OF TRANSPARENCY

42. drivers
• traditional business
→ combination of different products & services
• traditional newspaper
→ bundle of information
→ small price
• digital newspaper
→ same offer, but now on pc, tablet, smartphone
→ copy, paste
• but each atomic part has new competitors
METAPHOR OF MONOLITHIC VS. ATOMIC ORGANISATIONS

43. drivers
• breaking news
• in-depth analysis
• trends & lifestyle
• weather
• jobs
• sports
• etc….
WHAT IS THE ALTERNATIVE FOR…

44. drivers
• ‘APPification’
• small companies
→ they do only 1 thing/app
→ on a global scale
→ (almost) for fee
IMPACT SMARTPHONE

45. drivers
• traditional shop
→ more space for products
→ popular
→ profitable
LONG TAIL
• web shop
→ if it exists, you can buy it
→ even small group
customers
→ but worldwide = profitable

46. drivers
• smartphone + app
• anything is on the tip of your fingers
→ swipe
→ click
• example
→ Uber
INSTANT GRATIFICATION

47. drivers
• online banking
• online tax form
• online hotel booking
• online shopping
SELF-SERVICE

48. drivers
• AWS = amazon web service
• Pinterest, air BnB, Spotify
CLOUD-COMPUTING

49. drivers
• before: experts
• now all the
intelligence is in
your pocket
METAPHOR GATEKEEPER

50. drivers
• opinion
→ film recension?
→ friends on FB
→ IDMB
WHAT DO YOU PREFER?

51. drivers
• article in magazine about a city trip?
→ sponsored?
• opinion
→ friends Facebook
→ TripAdvisor
→ Blog *
WHAT DO YOU PREFER?

52. drivers
THE NETWORK WINS
https://www.youtube.com/watch?v=zntukv0MvpI

53. drivers
• fear
→ ‘off the network’
→ no wifi
• at ease when
→ full battery
→ five bars
• constantly sharing
→ we feed the network
GEN Z = EXTREMELY CONNECTED

54. drivers
CROSSMEDIA

55. drivers

56. drivers
• apps location based
→ weather apps
→ traffic apps
→ restaurant apps
→ tinder….
THE FUTURE IS MOBILE

57. drivers
FACEBOOK FOCUS ON MOBILE

58. drivers
WAITING FOR A JOB INTERVIEW

59. drivers
IN A (BORING) MEETING

60. drivers
NICE & COZY AT HOME

61. drivers
TOGETHER IN A RESTAURANT

62. drivers
CONCEPT : VUCA
source: Peter Hinssen

63. drivers
•
https://www.youtube.com/watch?v=7OvL0-36ucc

64. drivers
• gamification
• internet of things
• wearables
• 3D printing
• quantified self
• robotics
• drones
• big data
• monitoring
MORE STUFF TO COME

65. drivers
3D REVOLUTION

66. drivers

67. drivers

68. drivers
• example Manhattan, NY
BIG DATA

69. drivers

70. drivers

71. drivers
https://www.youtube.com/watch?v=b9nDPWaOK4g

72. DIGITAL DISRUPTION
BUSINESS MODELS
trends
drivers
models
response

73. business models
• share economy
CONCEPT P2P ECONOMY

74. business models
• so you can bypass an entire business
DEFINITION

75. business models
• centralized
→ client server model
→ only 1 node
→ you always need to pass
the center
• decentralized
→ you can bypass the center
→ several nodes
• distributed
→ no nodes anymore
• Question: can you apply
this model to business models?
NETWORK TERMINOLOGY

76. business models
• centralized
→ Mc Donalds decides
→ Bpost
• decentralized
→ Sapa = aluminum company
→ Colruyt group
→ dreambaby
• distributed (P2P)
→ Wikipedia
→ Wikispeed *
→ AirBnB
→ Tapazz (car rental)
BUSINESS TERMINOLOGY

77. business models
• reality = hybrid models
→ P2P
→ centralized
• AirBNB
→ takes a percentage
• Uber
→ decides price strategy
REALITY = HYBRID MODEL

78. business models
• flagships
→ Google
→ Facebook
→ Twitter
→ Instagram
• where do they get the money?
→ advertising
FREE MODEL

79. business models
BUSINESS MODEL CANVAS GOOGLE

80. business models

81. business models
• what is the concept of
this model
→ free
→ premium
• examples?
→ …..
FREEMIUM MODEL

82. business models

83. business models
• Music
→ you don’t buy CD’s
→ you ‘rent’ streaming
music
→ Spotify
→ Apple music
→ Deezer
• video’s
→ netflix
• data
→ drop box
• software
→ office 365
MEMBERSHIP MODEL

84. business models

85. business models

86. business models
• social selling
• affiliate marketing
→ bloggers
AFFILIATE MARKETING

87. business models
• concept shared ledger
→ virtual
→ decentralized
→ bookkeeping system
• examples
→ bitcoin 
→ but in the near future
→ mortgages
→ passports
→ gun licenses
BLOCK CHAIN

88. DIGITAL DISRUPTION
HOW TO RESPOND?
trends
drivers
models
response

89. how to deal with it?
source: Digital transformation, Jo Coudron (book, you tube)

90. how to deal with it?
• digital disruption is real
• expect a smack in the face
A SMACK IN THE FACE

91. how to deal with it?
• who is going to be your
→ uber
→ airbnb
→ Netflix
→ zalando
→ tesla
→ …
A SMACK IN THE FACE

92. how to deal with it?
CREATE YOUR OWN DIGITAL TRANSFORMATION VISION
https://www.youtube.com/watch?v=8wGq0e_n3n4
source: digital transformation, Jo Coudron

93. how to deal with it?
CREATE DIGITAL LEADERSHIP
source: digital transformation, Jo Coudron

94. how to deal with it?
• score your leadership team on active usage and or
understanding of new technologies
• if the majority of leadership is out,
the company is out ….
LEADERSHIP ASSESSMENT
CEO sales mkt HR Fin prod. R&D ….
Facebook x x
twitter x x
LinkedIn x x x x x
you tube x x x
snap chat x
Instagram x
…
you can also apply this
to your university
source: digital transformation, Jo Coudron

95. how to deal with it?
TRANSFORM ORGANIZATION PHILOSOPHY
source: digital transformation, Jo Coudron

96. how to deal with it?

97. how to deal with it?
CHANGE OF CULTURE
source: digital transformation, Jo Coudron

98. how to deal with it?

99. how to deal with it?
• rather than thinking about sharing markets,
we need to think about creating markets!
SHARING OR CREATING?

100. how to deal with it?
• traditional structures
→ procedures
→ rules
→ budgets
• speed?
→ slow
• goal
→ keep business going
CLASSIC INNOVATION

101. how to deal with it?
• project teams
→ small
→ dedicated
• speed?
→ agility
→ flexibility
• think ‘out of the box’
• can even be threat traditional activities
→ possible cannibalization
• example
→ Google
NEW INNOVATION

102. how to deal with it?

103. how to deal with it?
• example : Microsoft employees
• company: between 10h - 14h and at home (skype business + office 365 +…)
NEW WORLD OF WORK

104. how to deal with it?
BUILD THE TRANSFORMATION FLEET

105. how to deal with it?
• study with humans
→ max. of about 150 people
→ if more people
→ more structures
→ more rules (laws)
→ more tools
→ more processes
ROBIN DUNBAR STUDY

106. how to deal with it?
• make an educated guess….
DARWIN

107. how to deal with it?
• the customer always decides
• all things you do must start from a superior
experience
• from now on, you are an agile & flexible company
• you live in a world of constant uncertainty, deal
with it
• always play on the offense instead of the defense
• don’t be afraid to cannibalize your own business
• never, ever, disrespect new or small players
CHANGE THE CULTURE

108. how to deal with it?
• how can we explain the success of Uber?
THE CUSTOMER ALWAYS DECIDES

109. how to deal with it?
ALL THINGS YOU DO MUST START FROM A SUPERIOR EXPERIENCE

110. how to deal with it?
• customer centric
FROM NOW ON, YOU ARE AN AGILE & FLEXIBLE COMPANY

111. how to deal with it?
• only certainty =….
YOU LIVE IN A WORLD OF CONSTANT UNCERTAINTY

112. how to deal with it?
ALWAYS PLAY ON THE OFFENSE INSTEAD OF THE DEFENSE

113. how to deal with it?
NEVER EVER DISRESPECT NEW OR SMALL PLAYERS

114. how to deal with it?
BALANCE
source: digital transformation, Jo Coudron

115. how to deal with it?
TAKE HOME MESSAGE
source: digital transformation, Jo Coudron

116. QUESTIONS?
THANK YOU FOR LISTENING