Economy and digital disruption: what is the impact of the digital disruption on our economy, what are the trends, what are the drivers, what are the business models behind the disruption, and how to deal with the digital disruption?
see also you tube: https://www.youtube.com/playlist?list=PLqx4oNRow1nrw9p7ffuQyC9AVgl7UIkpK
2. digital transformation
• Digital transformation or disruption
→ trends
→ drivers
• 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
25. trends
• Do you recognize this building?
• Chrysler Building, Manhattan, NY
• represents power
→ car companies
→ oil industry
ARCHETYPE ‘OLD’ BUSINESS
26. trends
• and this building?
• headquarters Apple, Cupertino
ARCHETYPE ‘NEW’ BUSINESS
36. drivers
• technological innovation
→ social networks
→ user friendly apps
→ mobile devices
→ online review systems
DRIVERS OF TRANSFORMATION (DOT’S)
38. drivers
• value shift
→ younger generations think different about concept
→ access > possession (status) *
→ 1 lawn mower for neighborhood
→ Netflix or Spotify sharing with friends..
• sharing economy
DRIVERS
39. drivers
• Wie heeft gehoord over LETSEN?
• acroniem
→ Local
→ Exchange
→ Trading
→ System
• Hoe heet die lokale munt in
→ Kortrijk
→ Gent
→ enz…
SHARING ECONOMY
46. 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
47. 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
48. drivers
• breaking news
• in-depth analysis
• trends & lifestyle
• weather
• jobs
• sports
• etc….
WHAT IS THE ALTERNATIVE FOR…
50. 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
51. drivers
• smartphone + app
• anything is on the tip of your fingers
→ swipe
→ click
• example
→ Uber
INSTANT GRATIFICATION
62. drivers
• fear
→ ‘off the network’
→ no wifi
• at ease when
→ full battery
→ five bars
• constantly sharing
→ we feed the network
GEN Z = EXTREMELY CONNECTED
67. drivers
• apps location based
→ weather apps
→ traffic apps
→ restaurant apps
→ tinder….
THE FUTURE IS MOBILE
68. • we don’t talk so much to each other
• examples
→ waiting for a job interview
→ in a (boring) meeting
→ nice & cozy at home
→ with friends on a restaurant
DISADVANTAGES (THE DARK SIDE)
71. drivers
• gamification
• internet of things
• wearables
• 3D printing
• quantified self
• robotics
• drones
• big data
• monitoring
MORE STUFF TO COME
72. • add the right product name
• google …..
• Amazon ….
• Apple ….
VIRTUAL ASSISTANTS
80. • possibility to predict consumer behavior
• and tailored advertising
• machine learning & AI
BIG DATA
81. • Twitter can predict box office revenues from
films, based on user experience
• Google can predict very precisely where and
when a flue epidemic will occur
• Shazam
BIG DATA: PREDICTIVE ANALYSIS
90. 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
91. business models
• centralized
→ Mc Donalds decides
→ Bpost
• decentralized
→ Sapa = aluminum company
→ Colruyt group
→ dreambaby
• distributed (P2P)
→ Wikipedia
→ Wikispeed *
→ AirBnB
→ Tapazz (car rental)
BUSINESS TERMINOLOGY
92. business models
• reality = hybrid models
→ P2P
→ centralized
• AirBNB
→ takes a percentage
• Uber
→ decides price strategy
REALITY = HYBRID MODEL
93. business models
• flagships
→ Google
→ Facebook
→ Twitter
→ Instagram
• where do they get the money?
→ advertising
• dus indirect betaal je wel een prijs
→ wie betaalt finaal die advertising?
→ en wat geef je vrij in ruil voor die google info?
1) FREE MODEL
94. ²
• there are also some disadvantages
to the system of share economy
→ status as self-employed person
→ call centers, chatrooms
→ week-end work
→ evening shifts
• so a much more flexibility is
expected…
A CRITICAL NOTE
99. 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
3) MEMBERSHIP MODEL
114. how to deal with it?
source: Digital transformation, Jo Coudron (book, you tube)
115. how to deal with it?
• digital disruption is real
• expect a smack in the face
A SMACK IN THE FACE
116. how to deal with it?
• who is going to be your
→ uber
→ airbnb
→ Netflix
→ zalando
→ tesla
→ …
A SMACK IN THE FACE
117. how to deal with it?
CREATE YOUR OWN DIGITAL TRANSFORMATION VISION
https://www.youtube.com/watch?v=8wGq0e_n3n4
source: digital transformation, Jo Coudron
118. how to deal with it?
CREATE DIGITAL LEADERSHIP
source: digital transformation, Jo Coudron
119. 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
130. how to deal with it?
• traditional structures
→ procedures
→ rules
→ budgets
• speed?
→ slow
• goal
→ keep business going
CLASSIC INNOVATION
131. 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
133. how to deal with it?
• example : Microsoft employees
• company: between 10h - 14h and at home (skype business + office 365 +…)
NEW WORLD OF WORK
134. how to deal with it?
BUILD THE TRANSFORMATION FLEET
135. 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
136. how to deal with it?
• make an educated guess….
DARWIN
137. 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
138. how to deal with it?
• how can we explain the success of Uber?
THE CUSTOMER ALWAYS DECIDES
139. how to deal with it?
ALL THINGS YOU DO MUST START FROM A SUPERIOR EXPERIENCE
140. how to deal with it?
• customer centric
FROM NOW ON, YOU ARE AN AGILE & FLEXIBLE COMPANY
141. how to deal with it?
• only certainty =….
YOU LIVE IN A WORLD OF CONSTANT UNCERTAINTY
142. how to deal with it?
ALWAYS PLAY ON THE OFFENSE INSTEAD OF THE DEFENSE
143. how to deal with it?
NEVER EVER DISRESPECT NEW OR SMALL PLAYERS
144. how to deal with it?
BALANCE
source: digital transformation, Jo Coudron
145. • traditional business, but they are investing in the
market of batteries
• they make money, but Tesla not yet....
EXAMPLE: UMICORE
146. how to deal with it?
TAKE HOME MESSAGE
source: digital transformation, Jo Coudron
The Great Wave off Kanagawa, by Katsushika Hokusai
is one of the best recognized works of Japanese art in the world It depicts an enormous wave threatening boats off the coast of the prefecture of Kanagawa
internet, social media, new technologies, P2P platforms, peer reviewen,
4) instant reactie, kan wereldwijd snel
it is not necessary to own a car, if you can use it, why not?
dutch professor in transition economy
cfr. heliocentrisme versus Newtoninaans
dutch professor in transition economy
let us not be naive, they get sponsored as well
google = oorspronkelijk: backrub, en nu noemt het: alpahbet
https://www.youtube.com/watch?v=CPvbIoqWQkY&list=PLtSMh3a6aOtcgfrApsFDlqBwqyPBdrEgg
Thomas Rooselaer
peer = equal, same level
wikispeed: people create a new car
you have no certainties
in 2006 many people were laughing when Twitter was launched….. did they know?