We’re standing at the dawn of a digital business revolution. In fact, we barely realize it. As with the beginning of every revolution, those in the midst of it can feel it, sense it, and realize that something big is happening. Yet it’s hard to quantify the shift. The data isn’t clear. It’s hard to measure. Pace of change is accelerating. Old rules seem not to apply. My new book, Disrupting Digital Business, published by Harvard Business Review Press, reveals these revolutionary forces and prepares leaders to dominate digital business. You now have the 10 lessons learned to disrupt digital business in your hands. You can take this information and change the world in front of you or choose to sit on the knowledge as the world passes you by I trust you will do the right thing. And when you want some company, come join us as a client at Constellation Research where we're not afraid of the future and the art of the possible.

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Disrupting Digital Business
Thriving In The Post Sale, On Demand Economy
Spring 2015
R “Ray” Wang (@rwang0)
Principal Analyst & Chairman

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@rwang0
2
52%
of
the
Fortune
500
firms
since
2000
are
gone

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@rwang0
Digital creates winner takes all markets
Overall
Market
Share
Percentage
of
Profits

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4
@rwang0
“A
digital
divide
exists
between
the
organiza0ons
who
have
built
digital
business
models
and
everyone
else.”
(2013)

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5
@rwang0
Lessons Learned

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@rwang0
#1:
Digital
disrup0on
is
more
than
just
a
technology
shiY.
It’s
about
transforming
business
models
and
how
we
engage.

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7
@rwang0
Tech convergence powers digital disruption
Mobile
Social
Cloud
Big
Data
IOT
3D
Prin0ng
Design
Thinking
Inspired
User
Experience

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8
@rwang0
Social creates new verbs and experiences
that bring people and networks together
Twi`er
–
I
need
to
pee
Facebook
–
I
pee’d
Google+
-­‐
More
pee
in
circles
FourSquare
–
I’m
peeing
here
Pinterest
–
My
pee
scrapbook
Instagram
–
My
pee
in
sepia
LinkedIn
–
Hire
me
to
pee
Path
–
Watch
me
pee
privately
You
Tube
–
Watch
me
pee
Vine
–
Watch
my
pee
loop
SnapChat
–
I
have
no
proof
I
pee’d
Jelly
–
Does
this
look
like
pee?
What’s
app
–
I
told
you
I
pee’d
Meerkat
–
Watch
me
pee
live

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@rwang0
#2:
We
move
from
selling
products
and
services
to
keeping
brand
promises
in
an
a`en0on
economy.

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10
@rwang0
Digital accelerates business model
transformation
• Product
companies
give
away
product
for
service
revenues.
• Service
based
businesses
sell
experiences
at
varying
price
points
and
service
levels.
• Experience
based
businesses
selling
business
models
• Business
model
companies
sell
peace
of
mind.
10

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11
@rwang0
"You're
not
compe0ng
with
another
company,
you're
really
compe0ng
for
0me
and
a`en0on"
(2010)

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@rwang0
#3:
New
unit
cost
pricing
models
enable
disrup0ve
business
models
to
thrive.

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13
@rwang0
From all you can drink…. to by the sip

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@rwang0
#4:
Data
is
the
founda0on
of
digital
business.
Every
touch
point,
every
click,
every
digital
exhaust
is
relevant
insight.

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15
@rwang0
©
2013
-­‐
2014
R
Wang
&
Insider
Associates,
LLC.
All
rights
reserved.
Data
Sources
Informa0on
&
Orchestra0on
Insight
Decisions
&
Ac0ons
Technology
Driven
Line
of
Business
Driven
• Structured
• Semi-­‐structured
• Unstructured
• Physical
• Virtual
• Machine
• Contextual
• Performance
• Deduc0on
• Inference
• Predic0on
• Next
best
ac0on
• Preven0on
• Sugges0on
• No
ac0on
Use big data context to improve analytical
insight to make better decisions

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@rwang0
#5:
If
20
%
of
your
revenue
is
not
an
insight
stream
by
2020,
you
won’t
have
a
digital
biz
model

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17
@rwang0
The future is big data business models built
on insight
Informa0on
based
differen0a0on
Drive
demand
Create
new
service
offerings
Improve
c-­‐sat
Drive
lower
cost
models
Informa0on
brokering
Raw
informa0on
Analysis
and
insights
Benchmarking
Informa0on
based
business
platorms
Marketplaces
Deal
making
Adver0sing
©
2011
-­‐
2013
R
Wang
&
Insider
Associates,
LLC.
All
rights
reserved.

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@rwang0
#6:
You
can
be
the
content,
the
network
and
the
arms
dealers.
The
digital
winners
will
figure
out
how
to
ver0cally
integrate
all
three

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@rwang0
VS.
Videos
VS.
Shipping
VS.
Commerce
Cloud
Compu=ng
VS.
Media
VS.
Devices
VS.

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@rwang0
#7:
Digital
ar0sans
emerge
as
organiza0on’s
with
the
best
math
and
design
will
dominate
in
a
winner
takes
all
world.

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21
@rwang0
We
must
invest
in
digital
ar0sans
Authen0c
|Relevant
|
Transparent|
Intelligent
Speedy
|
Ar0s0c
|Non-­‐conformist

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@rwang0
#8:
People
to
people
(P2P)
democra0zes
distribu0on
which
strips
out
fric0on
and
transac0on
costs

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@rwang0
VS.
Tesla changed the rules of low volume
production, eco luxury & direct to consumer

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@rwang0
#9:
Design
for
customer
segments
of
one

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25
@rwang0
Analog
Systems
Pre
1950’s
Reliability
and
scalability
Massive
machine
scale
Sweat
based
Limited
Governed
Physical
loca0ons
Word
of
mouth
Dumb
devices
Assembly
line
technologies
Digital delivers mass personalization at scale
Elements
Circa
Design
point
Challenge
User
Exp
Comm
Style
Speed
Impact
and
reach
Info
mgmt
Intelligence
Examples
©
2011
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2014
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Wang
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Transac0onal
Systems
1950s+
Con0nuous
improvement
Massive
compu0ng
scale
Compu0ng
based
Broadcast
dictatorial
Just
in
0me
Departmental/
corporate
silos
Highly
structured
Hard
coded
Payroll,
ERP,
CRM
Engagement
Systems
2000+
Sense
and
respond
Massive
social
scale
Interac0ve
Conversa0onal
Real
0me
Interconnected
Loosely
structured
knowledge
Determinis0c
business
rules
Social
and
collabora0on
Mass
Personalized
Systems
2015+
Inten0on
driven
Massive
individual
scale
Personalized
Sen0ent
Space
0me
con0uum
P2P
networks
Self
aware
embedded
knowledge
Predic0ve
Decision
support,
VRM
Experien0al
Systems
2010+
Agile
and
flexible
Massive
contextual
scale
Bionic
Role
tailored
Right
0me
Segmented
value
chains
Immersive
streams
Probabilis0c
pa`ern
based
Ad
networks,
gamifica0on

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@rwang0
#10:
We
serve
5
genera0ons
of
customers
&
workers,
by
digital
proficiency,
not
by
age

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@rwang0
#10:
We
serve
5
genera0ons
of
customers
&
workers,
by
digital
proficiency,
not
by
age

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28
@rwang0
“Digital
Darwinism
is
unkind
to
those
who
wait”
@rwang0
2014

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29
@rwang0
Five steps to disrupting digital business
Design
new
experiences
and
outcomes
Develop
a
culture
of
digital
DNA
Apply
new
business
models
and
technologies
to
exis=ng
infrastructure
Move
from
gut
to
data
driven
decisions
Co-­‐create
and
co-­‐innovate
with
new
partners
5
4
3
2
1
©
2011
-­‐
2014
R
Wang
&
Insider
Associates,
LLC.
All
rights
reserved.

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@rwang0
Thank
you
R “Ray” Wang
650.918.6619
R@ConstellationR.com
Twitter: @rwang0
Blog: www.raywang.org

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